QuickAlerts: March 2011
March 1: 94x XML Business e-file - Tax Year 2011 Updates (2011 Filing Season)
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. Please use the current Schema marked Final 2011 Form 94x Schema (version 2.9.2) posted on IRS.gov.
Additionally, software developers should perform Pre-Validation of XML Data. Developers should use a validating XML parser to determine if their records are valid XML files.
For more information on Pre-Validation of XML Data, see Publication 3823 page 16.
March 2: Use the Interactive Tax Assistant to help answer your client's tax questions
As your customers begin filing their taxes, you can help them find answers through the Interactive Tax Assistant on IRS.gov. Simply go to ITA, select a topic, and answer a series of questions to get the latest information on most tax issues. ITA is accurate and efficient, and you can either print the answers for your records or give a copy to your clients for future reference. Various tax law categories are added on a regular basis so visit the site often.
March 3: 1040 e-file (Legacy) - Form 8941 – Error Reject Code 0010, SEQ 0090
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. An issue has been identified where ERC 0010 is setting erroneously on SEQ 0090 for Form 8941 when less than the full 12 positions are entered in variable format. Until the programming can be corrected, you should use the full 12 positions of SEQ 0090 (ex. 00000001000+) to avoid setting ERC 0010.
A subsequent QuickAlert will be issued when the problem has been resolved. We apologize for any inconvenience this may cause.
March 4: BMF: Software Developers, Return Transmitters, and Authorized IRS e-file Providers/EROs - First Quarter Forms 720
Form 720, Quarterly Federal Excise Tax Return will not be available electronically for the First Quarter (January through March) of Tax Year 2009. As a result, all Form 720 returns must be filed on paper for the First Quarter. A subsequent QuickAlert will be issued advising of future availability.
We apologize for any inconvenience. This has been an IRS e-file QuickAlert.
March 4: Credit to Holders of Tax Credit Bonds
ATTN: To all Software Developers, Return Transmitters, Electronic Return Originators, and Federal State participants:
Please be advised that Form 8912, Credit to Holders of Tax Credit Bonds, was implemented nationwide on March 10, 2009 for ELF and PATS Testing. After further review of the late legislation, Form 8912 did not require any changes.
The file specifications for Form 8912 that were included in Tax Year 2008 Publication 1346, Nature of Change #4 should be used.
As additional disabled forms become available, a subsequent QuickAlert will be issued.
March 4: IMF & BMF: Tax Professionals – IRS Nationwide Tax Forums
IRS Nationwide Tax Forums is now open for registration! Join tax professionals from across the country for three days of the latest tax law information, hands-on workshops, and exhibits of the newest products and services.
The IRS Nationwide Tax Forums will visit the following cities: Atlanta, Orlando, Dallas, San Jose, Las Vegas, and the Washington, DC area.
Take advantage of this great opportunity to receive up to 18 CPE credits, network with your peers, learn from subject matter experts from the Service as well as from our national association partners, or receive assistance on your most difficult case on site.
For more information or to register, please visit the IRS Nationwide Tax Forum web site.
March 5: 1040 Modernized e-File (MeF) - Form 4868 schema update
The following information impacts 1040 MeF Software Developers, Transmitters and States:
The latest version of the Form 4868 schemas (2010v4.0) show the "PINTypeCode" data element in the Return Header as being "optional". However, due to an unexpected delay in deploying this change into the production environment, the data element must remain as a "required" field until further notice.
The IRS is working diligently to implement this change and will issue a QuickAlert once the date is determined. We apologize in advance for the late notification and for any inconvenience caused.
March 7: 1040 e-file (Legacy) - Form 8941 – Error Reject Code 0010
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. Please be advised that the correction to Error Reject Code 0010 relating to Form 8941 will be implemented nationwide on March 7, 2011 for the 6:00 p.m. drain (local Service Center time). The correction will allow Lines 1-14 to be filed with no entries when the only source for the credit is a partnership, S corporation, cooperative, estate, or trust.
We apologize for any inconvenience this may have caused.
March 11: 1040 Modernized e-File (MeF) - Form 4868 schema update
The following information impacts Form 1040 MeF Software Developers, Transmitters and States:
The latest version of the Form 4868 schemas (2010v4.0) has been changed to make the "PINTypeCode" element "optional" rather than "required", effective March 10, 2011 in the production environment.
We apologize for any inconvenience caused.
March 14: 94x XML Business e-file - Tax Year 2011 Updates (2011 Filing Season)
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers / Electronic Return Originators.
We strongly suggest that you complete testing prior to filing 2011 first quarter Forms 941. The purpose of testing is to: ensure, prior to live processing, that providers transmit in the correct format and meet the IRS electronic filing specifications; that returns have few validation or math errors; and that providers understand the mechanics of IRS e-file.
For more information on testing, see Publication 3823.
March 15: 1040 e-file (Legacy) - Form 8941 – Error Reject Code 0010, SEQ 0090
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs.
The issue with Error Reject Code 0010 setting erroneously on SEQ 0090 when less than the full 12 positions were entered in variable format has been corrected. It is no longer necessary to use the full 12 positions of SEQ 0090.
We apologize for any inconvenience this may have caused.
March 18: IMF – 1040 e-file (Legacy) – Form 5405
Attn: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs.
When e-filing a repayment of the First-Time Homebuyer’s Credit, we recommend the following actions to expedite processing:
When Married Filing Jointly for TY 2010 and only one spouse received the homebuyer credit for TY 2008, we recommend filing one Form 5405 showing the taxpayer SSN who received the credit and is making a repayment.
When filing Married Filing Jointly for TY 2010 and the homebuyer credit was received from a Married Filing Joint return for TY 2008, we recommend filing two Forms 5405; one for each taxpayer SSN and making a repayment for each form based on ½ of the total credit received by the spouses.
For repayment purposes, the credit received for TY 2008 is considered split equally between the two spouses when taxpayers received the credit on a joint return so filing two distinct forms when repaying the credit should help expedite processing.
March 23: Update on First Time Homebuyer Credit and Tax Refunds
ATTN: Tax Professionals
The IRS today released information on processing issues that are impacting a small percentage of tax returns involving repayment of the First Time Homebuyer Credit (FTHB), primarily involving 2008 home purchases. While most of these returns are processing normally, the IRS recognizes the hardship caused by delayed refunds and it has assigned additional staff and resources to address the issues promptly.
1. Married Filing Joint taxpayers who received the FTHB credit on a 2008 purchase. The IRS projects that some of these taxpayers will receive their refunds as soon as April 5 and others the following week.
2. Taxpayers who received the FTHB credit and are now reporting the sale or disposition of their home. The IRS projects that taxpayers in this situation should receive their refunds by the end of April.
3. Taxpayers who received the FTHB credit and are attempting to pay back more than the amount required (typically $500). The IRS projects that taxpayers in this situation should receive their refunds by the end of April.
The time frames above assume there are no other issues impacting the taxpayer refund, including federally mandated offsets to refunds.
It is important to note that taxpayer returns claiming a home purchase in 2010 are not affected, and those returns are being processed as are the vast majority of other homebuyer returns. Additional information is available on IRS.gov.
Because the IRS is aware of the issue and working to resolve it, taxpayers do not need to contact the Service regarding this matter. The IRS apologizes for any inconvenience.
March 25: 1040 e-file (Legacy) - TY2010 Publication 1346 Nature of
Changes # 6 (New ERCs 0161, 0169, 0190, and 0737)
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. Please be advised that Tax Year 2010 Publication 1346, Electronic Return File Specifications for Individual Income Tax Returns, Nature of Changes # 6 has been uploaded to IRS.gov to include new Error Reject Codes 0161, 0169, 0190, and 0737, and has been incorporated into Publication 1346.
You may access this information using the following link:
Tax Year 2010 Publication 1346
March 25: 1040 e-file (Legacy) - Schedule SE - Error Reject Code 0190
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. An issue has been identified with Error Reject Code 0190 erroneously rejecting a small percentage of returns with Schedule SE. We are currently researching the problem.
A subsequent QuickAlert will be released when the issue has been resolved.
We apologize for any inconvenience this may cause.
March 30: 1040 e-file (Legacy) - TY2010 Publication 1346 Nature of Changes # 7
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. Please be advised that Tax Year 2010 Publication 1346, Electronic Return File Specifications for Individual Income Tax Returns, Nature of Changes # 7 has been uploaded to IRS.gov to include revised Error Reject Code 0190. You may access this information using the following link:
Tax Year 2010 Publication 1346
March 30: Subject: 1040 e-file (Legacy) - Schedule SE – Error Reject Code 0190
ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs. Please be advised the correction to Error Reject Code 0190 relating to Schedule SE will be implemented nationwide on March 30, 2011 for the 6:00 p.m. drain (local Service Center time).
We apologize for any inconvenience this may have caused.
March 31: Changes to Modernized e-File (MeF) Business Rule R0000-136 for Form 1040 and Form 4868
Attention: MeF 1040 Software Developers, Transmitters and States. Business Rule R000-136 has been disabled for Form 4868 and State submissions, it now applies only to Form 1040.
The wording for Business Rule R0000-136 has been updated to read:
MeF cannot accept this return because an invalid date of birth or date of
death was reported to the IRS by the Social Security Administration.
The invalid date reported was for < >. Note: the brackets will be
populated with the appropriate response that applies to the reject.
These changes have been implemented today and are now in effect.
