Expected 3/29 Individual Update - Unemployment $10,200

 Last week I sent everyone an updated email outlining the expected timeframe for the new calculation changes for the $10,200 Unemployment expenses and have some new information that is extremely important for you to understand and to read.

Many of you have been calling in regarding the IRS Worksheet they mentioned on their website, also been referring to other software manufacturers such as TurboTax implementing the changes based on the worksheet.  I specifically told everyone to hold off on all these types of returns because we have been waiting for the IRS to fix everything at the e-file center.

The IRS has confirmed that the Worksheet and calculation "workarounds" that have been released were for Paper Filing Returns ONLY!!

By March 29, 2021, we will have the software updated to ensure these calculations are based on IRS e-filing guidance and are auto-calculated.

The majority of tax returns filed using our software are e-filed rather than paper filings. We want you to be aware the recently released IRS guidance for handling unemployment compensations due to the American Rescue Plan Act of 2021 changes are for paper filings, not those who choose to e-file.

We have chosen not to provide you with workarounds and manual calculations to input the pertinent data into your tax preparation filing software. These workarounds would be drawn from recently released IRS guidance for paper filings and possibly cause rework at a later date.

On top of all of this, the IRS has still said to not e-file any Amended returns regarding this issue because they are now in the process of just possibly sending out a check to everyone instead of requiring an Amended tax return to be filed.

With all of that being said.. what are your options?

1. We still strongly advise you to be patient and wait until the official updates have been made within our software and at the IRS level for e-filing the returns that haven't been filed yet
2. IF you, or your customer, simply can't wait then you can take the chance and file the return as is, and they will have to deal with whatever decision the IRS makes on how to get the missing money they are hoping to receive based on those tax exclusions.

As a Tax Preparer, it is your job to guide your clients into making the best decisions for them and their needs.  We all know and understand some people simply just need money now.  However, it's up to you to make the best judgment call for your clients and helping them make the correct decisions.

Amendments with Bank Products, $10,200 unemployment changes, and more

This message is going to be short and to the point, but very descriptive and express total industry irritation.  We all know the glorious new law changes that they have pushed out and causing all of us in the tax preparation business to pull our hair out and want to bang our head against the wall.  Not only is it causing you all stress, but it's causing all us technical help providers, and software manufacturers, a great deal of stress knowing that we literally know nothing!

The IRS has said nothing on how exactly they are going to deal with the Child Tax Credit / Unemployment tax changes.  In addition to this fun idea, there are 34 states that actually charge a tax for Unemployment Benefits, and a few states are deciding this week "hey, we should go ahead and waive this also!"

You can imagine the amount of confusion, frustration, and pure stress this is causing everything.  I'm not immune to this either.  This has been one of the most painful years we have had in a long time.  We do typically have the additional stress when a new president enters the white house.  Do you remember back when Obama took office and the incredibly awesome nightmare the IRS shutdown caused in addition to the new law changes with the Affordable Care Act and the nightmare of the IRS getting everything organized to accept those returns?  Form 8962 is very confusing for a lot of tax professionals, even some veterans.

Back to the point at hand - American Rescue Plan Act & Bank Loan / Product Amended Returns...

We, Sure-Fire and the Development Team for the software, have absolutely no idea what to expect with these new law changes that recently happened. American Rescue Plan Act passed 3/10/21and is expected to be signed into law shortly. The most notable change for tax purposes makes the first $10,200 of unemployment relief received in 2020 exempt from tax for households with up to $150,000 of income.  For this, we are all going to strongly encourage that you completely hold off on all amended tax returns regarding the new tax law changes until IRS completely says how they are going to handle everything because right now, no one knows anything.  We don't know if amended returns will be required, or if they will just cut a rebate check to everyone.  We don't know. 

For those with Bank Loans / Regular Bank Product on tax returns and not able to do Amended Tax Returns because of them being 'locked' for a Bank Product, or a Loan on the return, we got word today that it will be a fix implemented in the next 1040 Individual Update.  We haven't been told an exact release date for this update, only that it will be released sometime between tomorrow and Wednesday of next week.

This new update will allow you to submit a 1040X by e-file without having to remove the existing bank product on the return.  This was cleared earlier today with banks and regulatory parties involved with handling this type of situation.

 

We hope you keep your head up during all the panic going around in the industry and from your clients.  Feel free to contact us with any questions you may have and continue to tell your clients "I don't have your stimulus money, don't sue me bro!" (tax preparer meme).

 

(Reject 38) 35.02 Required Program Update Released!

To download program updates from the Communications menu, use the following steps:

1. In order to download updates from the Communications menu, you must be logged into the tax software.
2. Click the Communications menu and select Get Program Updates
3. Click OK on the Program Update dialog box.
4. The Software will download the update.
5. The Program will Prompt you to Close and Reopen the program in order to apply the update

As always, it's a good idea to get in habit of every day when you first open the program to do:

1. Communications > Get Program Updates
2. Communications > Get Module Updates

2021 tax filing starts Feb 12th

 IRS has just released the following press release: https://www.irs.gov/newsroom/2021-tax-filing-season-begins-feb-12-irs-outlines-steps-to-speed-refunds-during-pandemic

2021 tax filing season begins Feb. 12; IRS outlines steps to speed refunds during pandemic

 

Key filing season dates

There are several important dates taxpayers should keep in mind for this year's filing season:

• January 15. IRS Free File opens. Taxpayers can begin filing returns through Free File partners; tax returns will be transmitted to the IRS starting Feb. 12. Tax software companies also are accepting tax filings in advance.
   
• January 29. Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
   
• February 12. IRS begins 2021 tax season. Individual tax returns begin being accepted and processing begins.
   
• February 22. Projected date for the IRS.gov Where's My Refund tool being updated for those claiming EITC and ACTC, also referred to as PATH Act returns.
   
• First week of March. Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.
   
• April 15. Deadline for filing 2020 tax returns.
   
• October 15. Deadline to file for those requesting an extension on their 2020 tax returns

Filing season opening

The filing season open follows IRS work to update its programming and test its systems to factor in the second Economic Impact Payments and other tax law changes. These changes are complex and take time to help ensure proper processing of tax returns and refunds as well as coordination with tax software industry, resulting in the February 12 start date.

The IRS must ensure systems are prepared to properly process and check tax returns to verify the proper amount of EIP's are credited on taxpayer accounts – and provide remaining funds to eligible taxpayers.

Although tax seasons frequently begin in late January, there have been five instances since 2007 when filing seasons did not start for some taxpayers until February due to tax law changes made just before the start of tax time.

Web version printing issue

Currently, right now there is a known issue not being able to print return.  This is being worked on right now and hopefully should have a resolution here shortly.  We will post an update on this post when it's been corrected.

Web Version Creating E-FIle Diagnostic Error

The following error shows up for people..

The ':UserAgentTxt' element is invalid - The value 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/65.0.3325.181 Safari/537.36' is invalid according to its datatype 'String' - The Pattern constraint failed.

This issue has been identified and will be fixed in the next update for the Web/Online Version.  The current fix is in "Q&A" testing.  Soon as we get notification of the fix, we will post on here.

Google Chrome Update breaks Check Printing

Google Chrome had recently released an update within the last 2 weeks.  This new update now prevents downloading checks through the use of their web browser.  Firefox utilizes the same drivers that Google Chrome uses, so its affected as well.

Unfortunately, you will have to use either Internet Explorer (Light blue E with a Golden Ring), or Microsoft Edge (Dark blue E on all Windows 10 computers)

Attention Internet Explorer Users:

Internet Explorer uses headers and footers when printing by default. Internet Explorer will not allow disabling automatically by the Online Check Printing application. You must disable these when printing checks or checks will not print correctly for cashing. To disable printing of headers and footers follow the instructions below:

1. Press the Tools button. Under the Print Menu, click Page Setup.

2. Make sure the settings are the same as shown below and click OK.