AZ - Ref #45918 - Critical Diagnostic

[danvandusen]

I'm receiving a critical diagnostic with the following message. Is the logic for the critical diagnostic incorrect?

An amount reported on Form 309, Part I is negative. Per Arizona electronic filing specifications, negative amounts are not allowed. This return must be filed as a conventional paper return.

Looking at AZ form 309, the number in part I is positive. There is a statement #1 reference that contains two line items that are feeding into 309.

Statement #1 
Line Item #1 - is Positive

Line Item #2 - is Negative

The result is a positive net amount that is showing on Form 309

Is this truly a problem with efiling (the negative line item on the statement) or does is the statement irrelevant for efilling and as long as 309 has a positive net number?

[IntuitRebecca]

Hi there,

Statements, unlike worksheets, are included in e-filed returns. So since having a negative number on form 309 Part 1 would cause a rejection, having a statement linked to form 309 part 1 with a negative amount included would usually cause the same e-file reject.

- Rebecca

[danvandusen]

Thanks, Rebecca. That is helpful.

Is there a way to confirm if the diagnostic is really incorrect? Since part 1 is a positive number, do we know for sure that the e-file will reject a negative statement number?

The second diagnostic is that form 309 is not ready for print. So I am somewhat in limbo for now until either the form can be printed or e-file can be confirmed that a negative number will work from the statement. 

The form status page doesn't indicate that a print version will be coming.

[IntuitRebecca]

Sure thing!

Though I know it's not ideal, the only way to check if the diagnostic logic is correct in this instance would be to check the "Ignore" box on it and attempt to e-file. If the state accepts the return, let us know and we can get the diag updated to only trigger in instances where a negative actually prints on the 309 directly. 

If the return is otherwise ready to go and signed off, you can e-file that way and see if it gets rejected. We unfortunately don't have an ETA yet on printing the 309, but if the e-filed return is rejected, you'd need to wait for that to paper file. 

[danvandusen]

Thank you.

I will chat with the client and report back here if when we try to e-file and it is either accepted or rejected. 

[danvandusen]

Reporting back here that we were able to successfully e-file the Arizona return. I clicked ignore on the critical error, submitted it, and it was accepted yesterday 2/25/2023.