Wednesday, March 5, 2008

Handling $0 AGI TaxWise rejects

When the issue of TaxWise rejecting 2007 Income Tax Returns for the purpose of the Economic Stimulus Package came up, IRS Relationship Manager emailed all coodinators in Santa Clara County on Feb 19, 2008 that VITA HQ was studying the problem of what to do when Tax Wise returned an error for $0 AGI returns.

On Feb 27, 2008 an mail indicated that VITA HQ "has NOT endorsed the creation of phantom income ($1 interest income for instance) in order to force tax wise E-file. Paper filing is the recommended option." We were also advised to "Please do stay clear of advising the taxpayer on any kind of computation in terms of how much they will receive. Let the May 2008 notices take care of this.'

On Mar 3, 2008, the IRS sent out the following advisory "RP-2008-21 provides that the Internal Revenue Service will not challenge the accuracy of income tax returns filed in compliance with Notice 2008-28 by eligible individuals who enter $1.00 in adjusted gross income solely for purposes of effectuating the electronic filing of the return. This document will be published in IRB 2008-12, March 10, 2008"

So what to do? Guess it means that a place needs to be found to put in that $1 of bogus non-existent taxable income to generate that $1 in AGI income. Should it be under wage income, unearned income, interest income or misc income?


Anonymous said...

TaxWise software has no reasonable support service! We have been on hold for over 6 hours and there has been no support representative to answer our call.

Its ridiculous!! Oh, and this is the second day of such pathetic waiting and no response.

Funny thing is the only telephone being asnwered is their Sales Team. But of course, they can't help with any matters and again are quick to transfer callers to Support line which never has been asnwered.

DO NOT BUY TAXWISE and make the mistake we did. We never had this problem with IntelliTax but didn't know TaxWise would buy them out and be so terrible!!

Arthur said...

I have been with Taxwise for 10 years! And I am done!! Since they were bought out a couple years ago by cch the service and the program down hill from there. We have ack two weeks out and no response. Customer service acts like we are bothering them and suggest we call ourselfs to the ftb or irs to fix the problems!! Only thing is the made all us direct filers use them for a service center... Idiots they are just Idiots!!