1. Home
  2. Taxes General Forum
  3. The RRC - The IRS - Reject Errors - How The Software Works: Redux

The RRC - The IRS - Reject Errors - How The Software Works: Redux

Okay... one more time. Here is the latest as explained by Taxwise and the conference results with the IRS.

Question: Why doesn't TaxWise calculate the recovery rebate credit to Form

1040, 1040A, or 1040EZ?

Answer: This credit will calculate to Form 1040, 1040A, or 1040EZ again with TaxWise version 23.07.

Based on the original conference call last Friday, consulting with CERCA, other software vendors and our banking partners, we made a change to the way TaxWise handles the RRC credit to avoid more returns going to error resolution and possibly causing funding delays. This was added to the 23.06 patch.

Based on the RRC Conference Call today, the IRS stated that they do not have a problem with the Rebate Recovery Credit calculations on returns that are falling out to Error Resolution. They also stated on the call that the maximum amount of time for the return to resolve is one deposit cycle.

They further clarified the initial 'issue' that they described on Friday. Their current position is that only returns that had an amount on Line 70 that was different from the IRS calculation were falling into Error Resolution. The above condition (calculated amount of RRC not matching return amount of RRC) is the only condition, according to IRS, that a return would go into the Error Resolution system.

Based on the information that was presented today, any return that is due an additional RRC, which we are forcing to zero, will fall out to Error Resolution. We are currently reversing the changes that we made to the RRC calculations in 23.06 and putting the calculation back as before. Note: None of the other changes made in the 23.06 update will be changed; we are only making a change to the Rebate Recovery Credit calculation. Any amount now calculated on Worksheet 5 will flow to the appropriate line on the 1040, 1040A and 1040EZ forms.

We will most likely post this to both the support site and EFC later today, January 28, 2009. This will also require new Bank Deliverables as well.

Reminder: Some of your banking partners have already announced that they will not loan on refunds that have RRC in the refund. If the amount on line 70 does not match what the IRS has on file, it will fall to error resolution and the IRS deposit will be delayed by one funding cycle.

Reply to
Alan
Loading thread data ...

(snipped....)

And it works well, too. This morning I downloaded 23.07, installed and reopened a client's return who I thought according to Taxwise previous prnouncement upon 23.06, would be separately calculated later on, in the future. Everything calculated correctly, carrying forth the extra 600 to page 2. Client was extra happy.

All's well that ends well.

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

I'm still not sure when the IRS will trigger Error Reject Codes

269 & 273 vs just send the return to error resolution.

I think it works this way: A return without dependents that has an ESP received amount other than zero on the worksheet that does not match the IRS database triggers the reject. Anything else... no reject... just error resolution.

E.g., A return with dependents always goes to error resolution if the RRC is screwed up. A return that just leaves the ESP received field at zero on the worksheet also goes to error resolution.

Reply to
Alan

Funny case today. Single elderly lady had to pay 393$ last year, which was her 2007 tax. She then got a stimulus payment of 393$. Zero sum game.

for 2008, her tax was 408$, which entitled her to another $15 recover rebate credit, so she ended up this morning writing a check to IRS for.... $ 393! Same as last year. I had to laugh as I explained it to her.

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

She is obviously one of the "3% of taxpayers" that the IRS talks about.

Reply to
Alan

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.