The Internal Revenue Service said a series of forms will be disabled until mid- to late February with error codes.
In an e-mail alert to software developers, tax return transmitters, and authorized IRS e-file providers and electronic return originators, the IRS said Friday that the following forms would be disabled until mid- to late February with a new error reject code, 0248.
The following forms cannot be electronically filed at this time, according to the IRS:
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Schedule A, Itemized Deductions
Form 3800, General Business Credit
Form 4684, Casualties and Thefts
Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (Page 2)
Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit
Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit
Form 8859, District of Columbia First-Time Homebuyer Credit
Form 8910, Alternative Motor Vehicle Credit
Form 8917, Tuition and Fees Deduction
Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit
In addition, Error Reject Code 0014 does not allow entries for educator expenses (Form 1040, line 23 and Form 1040A, line 16) or tuition and fees (Form 1040, line 34 and Form 1040A, line 19). In mid- to late February, the record layout for Form 1040 and Form 1040A will be updated to allow entries for educator expenses (SEQ 0623) and tuition and fees deduction (SEQ 0705), according to the IRS.
The IRS said last month after the late passage by Congress of an extension of the Bush-era tax cuts that some of these same forms, especially Schedule A for itemized deductions and other forms for educators and tuition expenses, would not be available until mid- to late February, but it did not list many of the other forms enumerated on Friday at the time (see IRS Says Tax Season Will Be Delayed for Some).
Separately, the IRS also announced a delay in its Modernized e-File system for accepting some types of business tax returns. The IRS said that due to the extensive amount of infrastructure work being done on the MeF system to enhance performance, and the impact of additional work in support of the recently passed extender legislation, the annual Business Master File cutover window has been extended, and BMF startup has been delayed. Instead of opening at 9:00 am, Eastern on Saturday, January 8th, the MeF system will open for BMF returns and extensions at 9:00 am, Eastern on Wednesday, January 12.
Once BMF startup begins, and until changes caused by extender legislation are implemented, the IRS said it would reject any BMF e-filed tax returns that have the following forms or schedules attached: Form 1120-PC (Tax Year 2010), Form 6478 (Tax Year 2010) and Form 8849, Schedule 3 (Tax Year 2011). The IRS said it is working as quickly as possible to implement the necessary programming changes so these forms/returns can be processed.
The IRS noted that the due date for any tax return or extension originally due on January 15th has been extended to Tuesday, January 18th due to the 15th falling on a Saturday and the Martin Luther King Day holiday on Monday.
11 Comments
I will tell you if I knew it was going to be this much or a PROBLEM I would not have taken that stupid home buyers credit. I have to start repaying this year. I have not received my refund and have no answers in sight. Delays, delays, was told another 2 weeks. They had all year to prepare for this and decide at the last minute to change things. Whatever. Once I receive my refund I am filing an amended return and repaying the entire amount. This is insane.
Posted by: justme | March 12, 2011 1:57 PM
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Dear Anti-IRS, et al:
1) I don't think it's the IRS' fault that Congress passed the bill so late in the year (i.e. 12/17) during their lame-duck session. This could not have given the IRS enough time to produce their forms.
2) On the main page of the IRS' website, there is information on "delayed returns." It's slide #3, in the middle of the page.
Posted by: janmors | February 11, 2011 12:41 PM
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Gee. Screwed once again by the IRS. I am in shock. And if you go to their web site, NOTHING about delays. Most incompetent agency in America. How do these people keep their jobs. I work for the federal government and I am accountable for my actions. Guess the IRS is above ethics and customer service.
Posted by: Anti-IRS | January 15, 2011 6:04 PM
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Why don't you all tell the truth? We don't want a flat tax because it would affect US - you and me. I make no bones about telling people this and excuse myself from any arguments about which system would be "better".
A flat tax would NOT get rid of IRS. Remember Schedule C and Schedule E? A flat tax is paid on NET business income. IRS would still audit many returns, including Corps and Partnerships. In fact, with less resources needed for 1040s, a huge number of corporate and partnership returns would now be audited.
I could never see Congress getting rid of the mortgage interest deduction. If they do, goodbye construction. The MID would probably be an above the line deduction or credit.
You think the Dems would get rid of EIC? Ha! Think again.
Lastly, yes, it is unethical for a tax practitioner to file a return purposely excluding Schedule A. Our job is to prepare COMPLETE AND ACCURATE TAX RETURNS, remember?
Posted by: DesertEA | January 12, 2011 12:07 PM
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Shouldn't the taxpayers be allowed, say an additional 4-6 weeks, to file their taxes. How about a Tax season that ends on May 15th (opps that's a Sunday!) so the 16th of May!
Posted by: THJTAX | January 11, 2011 1:18 PM
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To dwalker4: Please define "Taxable Income"
We have Gross Income. Is all of this taxed?
If Deductions are to be allowed, define them! Now the fun starts.
And we haven't even discussed the Rate of the Flat Tax which could increase taxes for the middle class, wrecking the economy.
We anxiously await "your" definitive answers as to what deductions, if any, are to be allowed. Both for Businesses, Corps, LLCs, Self-Employed, and for Individuals.
Posted by: Tedego | January 11, 2011 12:33 PM
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Wondering how many taxpayers will file their returns twice for 2010. First filing without certain forms(Sch A, etc) just to be able to receive some of their refund by the first of Feb rather than waiting to mid Feb to receive form approval. Then, of course, tax payer would need to file 1040X to include the other necessary forms. Also, wondering if this would be unethical for tax preparers to knowlingly prepare in this manner??
Posted by: dwillis | January 11, 2011 12:29 PM
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Waiting for 1099-1098's to be issued is a far wiser choice for most people. The IRS has had early filing problems as long as I have been in this business and this is EVERY YEAR, not just this "Obama" year.
Most people who have been laid off are not getting "huger" refunds if they have not paid into their withholding and are taking possible taxable unemployment benefits.
E-Filing during peak season does not hold up refunds. Waiting for a paper check at the beginning of tax season could be making them wait longer for refunds.
If you are not sure of what you are telling your clients, perhaps saying less is more.
P.S. dwalker: Any accountant that defends a flat tax is not worth his salt to his profession if he has ANY middle income taxpayer clients.
Posted by: NiteOwlett | January 11, 2011 10:31 AM
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Flat tax system is still a better option than the actual spaghetti tax system. XD
Posted by: esoto | January 11, 2011 10:19 AM
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This delay in refunds for people in trouble with their mortgage will cause homes to be lost. I have several clients that wanted to come in and file this week who already know their mortgage interest deduction and property tax deduction and are expecting huger refunds as they were laid off midyear.
When I told them that they could not file till later in February and hence be in with the pack to wait for their refund they groaned. They needed that money to keep the house afloat.
These tax bills could have easily been passed a year ago.
Also, my business clients kept calling me about year end purchases but we had nothing till a couple of weeks before year end. Not enough time to order, ship and install a $100,000 boiler. And no estate tax bill caused the wealthy to circle their wagons.
But once we finally got some certainty on the tax law, the president announced that he soon would be rewriting the entire IRS code. So it was back to circling the wagons again. Talk of dropping the mortgage interest deduction kills home purchases. Who wants to buy a house and find out they cannot write off the interest.
And no one can figure out how to jumpstart the economy. If they just stopped shooting it in the head, that would be a good first step.
Posted by: tsar777 | January 11, 2011 8:06 AM
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How many more errors are we going to allow before we trash the IRS and go to a flat tax system?
Posted by: dwalker4 | January 11, 2011 8:03 AM
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