Iowa 1065 E-Filed Return Rejected

[erikcharter]

I had an Iowa 1065 rejected for e-filing because "Iowa Form IA 1065, Part VII, line 34, Composite and PTET credits has an amount entered. IA Schedule CC is required for electronic filing and is not a supported form. Print and mail the return to the Iowa Department of Revenue."

I'm confused because I don't have any out of state owners so IA Schedule CC is not required. 

Any idea how to get around this? Iowa requires e-filing so I don't want to get penalized for sending them paper returns.

[taxiowa]

Do you have an amount entered on Line 34?

[The_AntiTax_Man]

@taxiowa @erikcharter  I am experiencing some gremlins in the PS23 IA1065 module as well.  Please post other Iowa 1065 issues here as they arise.

[erikcharter]

I had a zero entered and I think that might have been enough to trigger the problem. Waiting to see if my resubmittal was accepted. 

[The_AntiTax_Man]

@erikcharter  I had a 5 member LLC that has 1 member receiving health insurance through the LLC. PS23 IA1065 was having problems getting the numbers in the correct boxes on the IA1065 K-1s.  I had to override some numbers on the IA1065 K-1s in order to get error warnings cleared up.

[CraigMerry]

ProSeries doesn't support Iowa schedules CC and DE in Iowa S corp or partnership returns.  I have called in several times and it appears that ProSeries has no intention of supporting these schedules.  Per Iowa Dept of Rev.

“A claim that the return preparation software purchased or licensed by a taxpayer or taxpayer’s return preparer does not include all of the features necessary to comply with the taxpayer’s Iowa filing obligations shall not be considered good cause for purposes of granting an exception to the electronic filing requirement.”

Therefore any paper return filed because ProSeries won't provide the above schedules will be at risk for failure to file penalties.  Will ProSeries reimburse these penalties?

[The_AntiTax_Man]

@CraigMerry  you can go to the IDOR web site and fill in the Iowa Form, then save as a pdf.  Next, attach the pdf(s) to the Iowa return prior to e-file.  Attaching a tax form to an IA return gets easier each time you are forced do it.  

I know, I know, you shelled out $5, or $6, or $8K+ to Intuit for 2023 tax software that you expected would be fully operational.  It's a disappointment that Intuit didn't deliver.  Figure that out after this filing season is over with. 

Good luck!  

[CraigMerry]

Thanks for the response, however this doesn't work.  If you answer yes to question d of the IA 1065 regarding if the partnership has a disregarded entity, an error appears that ProSeries doesn't support schedule DE and to file a paper return (which is contrary to Iowa Dept of Rev rules).   If you enter an amount on line 34 Composite and PTET credits, an error appears that ProSeries doesn't support schedule CC and to file a paper return. (the same is true for Sch SE & CC on the IA 1120S.

Schedule DE and CC are simple schedules and it shouldn't be a programing nightmare to put them in the program.   Based on expected release dates, ProSeries has no intention of supporting these schedules.  ProSeries should either prioritize getting these schedule in the program or contact Iowa Dept of Rev to get a reprieve to allow paper filing of returns with these schedules included.

Based on the instruction to paper file a return with these schedule because ProSeries doesn't support them, I assume that ProSeries will be paying all the late filing penalties.

[The_AntiTax_Man]

@CraigMerry  you can attach the pdf to the Iowa return.  Then turn off error checking when you e-file the return as the error message is erroneous once you have attached the pdf.

Yes, it would be nice if all of the Iowa tax forms were able to be filled out at the IDOR web site online and then saved to a pdf.

@IntuitGabi The Iowa tax forms that @CraigMerry is referring to are informational forms and are not computing forms that can cause bugs.  What is the status of adding these Iowa tax forms?  Did Intuit reach an agreement with Iowa to waive any penalties for filing these Iowa returns via paper?