I've been waiting for months for the "critical diagnostic" error to go away that says "DC Forms are final but instructions are still in Draft Mode." I cannot find any support from DC for this claim on the OTR (DC official website) for months, and it is well past the filing deadline.
Should I be interpreting this to mean that Proconnect just hasn't gotten around to implementing updated calculations based on some long-ago released guidance?
Or the error message is bogus?
Or DC is secretly telling developers the forms are not final (even though we're past the filing deadline) and withholding that info from the public?
What is going on here?
Best Answer Click here
Congress passed a joint resolution (H.J.Res.142) in February 2026, signed by President Trump on February 18, 2026, that officially overturned the D.C. Council’s "DC Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025". This action forces DC to conform with federal tax changes (known as the "One Big Beautiful Bill Act" or OBBBA), specifically reversing local efforts to decouple from federal tax cuts.
The DC Attorney General argued that Congress’s action was not legally sound because it occurred outside the allowed review period, and the legality of the repeal is being contested.
The city's chief financial officer has decided not to allow the city to spend the roughly $180 million in revenue that lawmakers were expecting to gain from opting out of various deductions, citing considerable risk and uncertainty from litigation or other actions. The matter is still being reviewed, and it is unclear how Congress will respond.
Congress passed a joint resolution (H.J.Res.142) in February 2026, signed by President Trump on February 18, 2026, that officially overturned the D.C. Council’s "DC Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025". This action forces DC to conform with federal tax changes (known as the "One Big Beautiful Bill Act" or OBBBA), specifically reversing local efforts to decouple from federal tax cuts.
The DC Attorney General argued that Congress’s action was not legally sound because it occurred outside the allowed review period, and the legality of the repeal is being contested.
The city's chief financial officer has decided not to allow the city to spend the roughly $180 million in revenue that lawmakers were expecting to gain from opting out of various deductions, citing considerable risk and uncertainty from litigation or other actions. The matter is still being reviewed, and it is unclear how Congress will respond.
Thanks Bob. So how on Earth are DC residents expected to reasonably file returns and make estimated payments? I can't find any guidance online that gives a recommended course of action.
We have the same situation in Arizona. The returns being accepted by the governor's Department of Revenue do not conform to current law, nor to the amendments enacted by the Legislature but vetoed. The actual law won't be settled until the 2027 state budget is approved by June 30. So here's some guidance: If you didn't file an extension and don't want to wait for a resolution, file what will be accepted now and advise your clients that they may want to file an amended return later (for DC, this would likely result in a refund).
Hi @LauraMac1 Thanks for posting in the Community about Proconnect Tax still saying DC forms are in draft. The reason that @BobKamman posted is why the diagnostic is in place. We want you to know that if you file the return, there is the potential that calculations could change, and then a possibility of having to amend the return. Bob's guidance is also what the resolution would be.
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