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Audit and Correction Policy

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ExacTax Audit and Correction Policy

Our Audit and Efile departments are experiencing very high rates of missing or incomplete input, especially with regard to Form EIC {79} and payer/employer address information on numerous forms. In order to reduce the extra time and effort to call and correct each one of these returns, the Audit and Efile departments have implemented the following policy:

 

If information is required, a call will be placed. Returns still on hold 48 hours after calling will be released. If there is an efile error, efile will be suppressed.

  1. RDE returns with efile errors will have efile suppressed and then processed.
  2. If the street address is left blank, the city name will be inserted. If an address is missing only the zip code, ExacTax will attempt to look it up; procedure charges will apply.
  3. Form EIC {79}: When the Earned Income Credit is applicable all of the required questions must be answered. Any questions left blank will be answered as follows:

Note: The answers for children or Schedule C will only be answered when applicable.

 

Other areas that will speed processing for electronic filing are:

  1. On Form W2 {20} always fill in the Medicare wages. Leaving Medicare wages blank will cause the taxable wages to be used which could cause an incorrect computation of excess Medicare withholding.
  2. Decedent returns: always requires an In Care Of name on Form 1040 {1}, zip 64. When the return has a surviving spouse, enter that name in zip 64.
  3. California decedent returns without a surviving spouse must always have the code for the representative type entered in CAELF {95D or CA33B}, zip 7, even when there is no refund.
  4. California decedent returns without a surviving spouse must always have the executor or guardian name entered on CAGEN {CA1}, zip 9.
  5. Delete education credit lines {60B}, zip 10, with no amounts.
  6. Delete dependent care providers {80A} with no amounts.
  7. Delete any description on Schedule A, {70B} Miscellaneous deductions, that doesn’t have an amount. Also, all miscellaneous deduction amounts must have a description.
  8. Schedules C, F and Rent must have at least one income or expense item or the form and all attachments must be deleted.
  9. Form 1098C {73D}, Donation of Motor Vehicle, Boats and Airplanes, always requires a copy of the contemporaneous acknowledgement form to be sent in with Form 8453. Submit Form 8453 {3C} and put a ‘1’ in zip 1. RDE users can choose to attach a PDF to the efile instead.
  10. California withholding on real estate always requires either Form 592-B {CA43} or Form 593 {CA44} to be completed. Be sure to complete all applicable fields. Note: The Preparer section at the bottom, zips 50-53, refers to the preparer of the Form 593, not the tax preparer. This is usually the escrow officer.
  11. Review all diagnostics at the bottom of Form PI.

 

When there is a rental on a multi-state return be sure to enter the allocation percentages on Rent {31A}, zip 26.

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Last modified on Tuesday, 01 September 2015 23:22