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55616

55616

Critical diagnostic efile: "This return has Schedule SE and/or Schedule H taxes eligible for deferral. You must make an entry to indicate if this is a new tax return that must follow the new deferral worksheet rules, or if this is an already filed tax return that used the old deferral worksheet rules."

My returns are NOT deferring SE tax so the worksheet is irrelevant. This diagnostic appeared with the most recent update. The problem is that it is a critical e-file and it popped up on returns that have been completed but not e-filed yet because we are waiting on the client to sign them. The really, really frustrating part is that it shows as a diagnostic on anyone with SE taxes that are due. In our office, the diagnostics are cleared and the returns are printed after the review process. Then the client signs the e-file form and then submitted. Now we are getting failed validation errors on returns that previously had all the diagnostics cleared. 

Solution: The diagnostic will occur if the taxpayer is eligible to defer SE taxes, regardless if he/she is electing to defer or not. In a situation where the taxpayer is not deferring SE tax, we recommend entering a 2 in the field so that the diagnostic will be resolved. There will be no change to the tax return when this happens.