8867 Residency Documents Warning

[Chowdahead]

All of a sudden since the 12.6 update the residency documents checklist for the EIC started to appear as a yellow warning list during a return check. It warns that this should be completed before e-filing.

Why wasn't this showing up before? I called a couple of fellow preparers and they stated that their programs have been displaying this since the beginning of the tax season.

This is the second time ATX has done this with the EIC. There were were several other questions on the EIC that were originally not required to be answered but all of a sudden they were required during an update. This also caused a number of my federal e--files to be rejected with a bunch of garbled code because ATX changed some of the boxes to be automatically checked "Does not apply",

Ughhh.. I need coffee. Am I making sense?

[frannie]

It is just a warning. You can still efile the return. It says "Additional Due Diligence Information worksheet will not be e-filed. Be sure to retain for 3 years from the latest of the dates in instruction under Document Retention".

[Gail in Virginia]

My favorite warning this year is on the Virginia state e-files. Virginia has an e-file mandate, so every time I run diagnostics on a return, that warning comes up. Then when I go to e-file, it creates the Virginia e-file with warnings. The warning on the e-file is that Virginia has an e-file mandate.

[TAXMAN]

Hey Gail that Gremilin may go away after you hit their magic number. I would think that IF the return was being efile WHY the message. I too get it all the time on Virginia. Also check a Virginia Return for a single person on page two top left where it puts DOB and see if it puts in a spouse DOB of 12312012??

[grmy2h]

Also check a Virginia Return for a single person on page two top left where it puts DOB and see if it puts in a spouse DOB of 12312012??

I am in Virginia also. It is not putting it on my single returns.

[TAXMAN]

I will check my VA updates to be sure but the last one I checked it DOB spouse was 12312012 even though we had no spouse. I believe it also printed that info on client copy. Will check next one I do.

[taxtrio]

Look at this notice from my NATP Newsletter:

EITC Due Diligence Checklist Filing Required

The IRS has noticed that a large number of returns with the Form 8867, Paid Preparer’s Earned Income Credit Checklist, have incomplete information. Although the IRS will not reject a return if information is missing on Form 8867, these returns will be suspended causing a potential delay in refunds if the information is missing. Paid tax return preparers are required to file Form 8867 with any federal return claiming EITC. Form 8867 is the same due diligence checklist that is currently required to be completed and retained in a preparer’s records.

Now they tell us!

Taxtrio

[Gail in Virginia]

Taxman, that date is on my state returns as well - I just had not paid any attention. I should not be too surprised; I have never understood why the worksheet for the marital adjustment on Virginia prints even for single people.

And Taxtrio, I don't think this makes much difference. ATX will not create the e-file until all those little boxes are checked one way or the other. Personally, I don't really think the same division of the treasury that is charged with collecting taxes should have to also make payments of social engineering credits and police those who claim them. But I didn't make the rules.

[joanmcq]

This is one of the benefits of taking a decent tax update class each year! And also taking said class in January. They go over stuff like this.