Client Accounting Suite/Premier (CAS/P) version 23.3 is available

The 23.3 version of CAS/P is now available from the Solution Center or via the auto-update feature in CAS/P. It includes the following regulatory updates.

Regulatory Updates

The following regulatory information is now available for Client Accounting Suite and Client Accounting Suite Premier:

• 2024 Federal Forms update
• 2024 941 is included.
• 943x and 944x are available in Blank Forms.

• 2024 State Returns - Form updates for the following states are included in this update.
• Alaska
• North Carolina
• Rhode Island
• 2024 State Withholding Rates - The following state withholding calculations have been updated for 2024:

• Maryland Counties
• Note:  As other states change their rates for 204, we will provide updates on the support website.

Software Updates

• Export for the 2024 941 to Payroll Compliance Reporting has been enabled.

IRS Reject F7004-905-03 for Form 7004-Business Extension

Customers submitting an extension for business returns may encounter the following rejection code from IRS.

“F7004-905-03 In Form 7004, Line 1, 'ExtensionReturnCd' the return for which the extension is filed must match the return type established with the IRS for the EIN.
/efile:Return/efile:ReturnData/efile:IRS7004/efile:ExtensionReturnCd”

The Form 7004 form code for the return associated with this application must match the IRS database.  If necessary, the type of return the extension is to be filed for can be updated on Form 7004 line 1 to match the code the IRS has on file.

The form code can be found on the EIN letter the client received form the IRS.  The customer  can also Contact the Internal Revenue Service at 1-866-255-0654 for additional information on the correct form code.

Refunds Today, TaxWise Online - Scheduled Maintenance: February 29, 2024

Scheduled maintenance has been completed. We appreciate your patience as we continue to enhance our systems to offer you the best experience possible.

IRS: Filing Form 8283 for non-cash contributions from K-1 pass-thru entities.

For tax years 2023 and forward, the IRS has changed the filing requirements for reporting non-cash contributions from K-1 pass-thru entities (PTE) on Form 8283. (Refer to the Form 8283 instructions

IRS Reject F1116-004-03

IRS Reject: F1116-004-03:

If Form 1116 'ForeignTaxCrCarrybackOrOverAmt' has a non-zero value and 'ForeignIncmSection951AInd' is not checked and 'ScheduleBNotRequiredInd' is not checked, then Form 1116 Schedule B must be attached at the form level.

Our team is currently investigating the root cause of reject F1116-004-03 with the IRS. Please hold returns containing Form 1116 with Schedule B until further notice. We will update this blog post as more information is made available.

Resolved: IRS reject F1040-034-07 (Prior year)

Updated:  February 9, 2024

On February 9th, IRS will be disabling the business rule that generated this reject on for tax year 2022 & 2021.  Starting February 9th, please submit the prior year returns previously rejected.  

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Updated: February 6, 2024

IRS is still investigating the issue. In the meantime, If you have a 1099-R, TaxWise recommends holding these Prior Year returns until further notice.

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January 29, 2024

IRS is currently investigating the cause of this rejection and we have a workaround in the meantime. Click here for additional information.

State News: Ohio SD-100 School District Returns

 Please review the below information from the Ohio Department of Taxation

The Ohio Department of Taxation has made the following updates to their 2023 Form Ohio SD-100 and instructions which impact the filing of “Earned Income School District Tax Base” returns. This may require amended returns to be completed for previously filed returns. 

Per the agency, filing for these changes should not take place prior to February 8, 2024. At this time, our updated form release date has not been determined, but it will be as soon as possible.

Form OH SD-100:

• Lines 33, 34 & 35 will no longer be used on the form and will display as “reserved for future use”.
• Line 36 description will change to display as “Line 36 – Earned Income School District Tax Base (see instructions)” 

OH SD-100 instructions:

• The current instructions for lines 33 and 34 will be removed entirely from the online booklet.
• Line 35 is currently a total line and does not have any instructions in the booklet.
• Line description updated to “Line 36 – Earned Income School District Tax Base (see instructions)”
• If you lived in the school district for the entire year: Enter the lesser of line 3 or line 32.
• If you lived in the school district for only part of the year: Enter the lesser of line 32 or a prorated portion of line 3 based on how long you resided in the school district you entered at the top of the column. To prorate, divide line 3 by 12 months, then multiply the result by the number of months you resided in the school district. Alternatively, you may use days instead of months for your proration.

Important: For certain taxpayers, a prorated share of line 3 may not fairly reflect the portion of modified adjusted gross income received while a resident of the school district. Such taxpayers instead may determine the portion of modified adjusted gross income received while a resident of the district by specifically identifying income and deductions received while a resident of that district. They will then enter the lesser of that amount or line 32.

See the guidance for part-year residents on pages 64-65.

To stay up to date on the latest information, please visit: https://tax.ohio.gov/individual/school-district-income-tax