Premium Tax Credit impacted by American Rescue Plan

[MikeB_CPA]

As I understand the American Rescue Plan, Act one of its components suspends tax liability for 2020 when advance payment exceeds the allowed Premium Tax Credit, regardless of income level.  I have two returns where the excess premium credit repayment amount (Form 8962) still appears on the return. 

Have I misunderstood this component of the Act, or has this update not yet made its way into ProSeries?

Thanks!

Mike

[TaxGuyBill]

The update has not yet made it to ProSeries.

I got the impression that the IRS will be updating the form, so it will likely be a couple of weeks until the software is updated with that.

[abctax55 · Accepted solution]

They have to wait for the IRS to revamp the form, and then get IRS approval of Intuit's schema for it.

I'm hoping, optimistically,  ten days?

[brill1ant]

Go on vacation until 5/16/2021

I sent my resume to the IRS.

[sjrcpa]

The Commissioner was asking Congress for more money so they could hire more people.

[abctax55]

But he was asking for auditors, right?  Something about $xx spent on them would generate $ XXXXX more in tax collections.  Then I fell asleep.

[Shannyj05]

Thank you I have two returns I've been waiting for that to update too and nothing with todays update for unemployment benefits.  I was starting to think I read that wrong also!  They change all of this in MARCH and only move the date a month... they should go to July!  

[TaxGuyBill]

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@abctax55 wrote:

But he was asking for auditors, right?

---

While I suspect the auditors would not be thrilled with this idea, wouldn't it make sense for auditors to be switched to doing telephone support from mid-January through mid-April (allowing the IRS to answer more telephone calls), then then be auditing from May-December?

As a bonus, taxpayers (and tax professionals) would not need be dealing with audits during tax season.

I'm not sure how it would actually work out in real life, but it seems like a good idea to me.

[abctax55]

""....I'm not sure how it would actually work out in real life, but it seems like a good idea to me.

1)  In real life isn't where the folks making these decision 'live'.

2) And because it IS a good idea is exactly why it will never be implemented.   That, and the ego issue.

[MikeB_CPA]

Thanks very much.  Comforting to know that if my understanding of the Act is incorrect I seem to be in good company! 😂

[abctax55]

I'm not sure you *misunderstood* anything except the timing of all this new/retroactive crap they keep dishing out....   😉

[henrymarcusausti]

Is this in reference to when I open a return, the popup says that something or things have changed, and one of those is that the taxpayer owes back part of the Recovery Rebate stimulus?

[dkh]

No... the issue you are referring to was a glitch that happened with last weeks update.  I'm not sure but hope it was fixed with this weeks update.

[henrymarcusausti]

I can't get it to fix, actually, I have no earthly idea how to get it to fix. So I guess since I've been on hold for 1 1/2 hours, I should try Monday.  

Thank you.

[henrymarcusausti]

I finally gave up.  No one called me back after my call at 5pm, it's now 839pm.  Listened to the music until I realized that no one was going to answer the phone.  

[dkh]

You don't need to fix it. Leave it be until the program is fixed and all will be well.  Nothing has actually changed it's just a glitch that is giving a error message.   

[dkh]

@henrymarcusausti    read this post  How to fix Recovery Rebate Credit glitch? Intuit s... - Intuit Accountants Community

[henrymarcusausti]

Thank you for the help.  We live in rough times.

[pamdory]

Two of my best friends used to work for IRS - yes, we did meet on the job - and back in the day there was some of this going on, at least at the local office.  They were working on the help desk at least part of the time during season.  And they would set up help desks on April 15th at the Post Office to give limited help to last minute filers.  At the time there was a focus on compliance more than revenue generation.

Gee, it sounds like I'm talking about Mayberry IRS...

[OakmontBob]

a word of caution - It was recommended that we make a digital copy of all impacted UC returns that have been filed already - then lock them so no changes would automatically occur when opened - (in case we need to do amendments). Well, low and behold, in the process of "locking" all of our impacted returns - proseries automatically updated the files to correct the UCE issues. So now our returns already have the "corrected figures?" - don't know how we'll handle these if we need to file our own 1040X.   

[MikeB_CPA]

I have had the exact same problem, so if amended returns are necessary it appears that there will be a lot of manual adjustments necessary.  Great news late in March.  I am still curious to see how in the world IRS might be making adjustments on their end, considering that the UCE has a ripple effect on numerous other areas of some taxpayers' returns.

[jeffrey]

While this is all great, 10 days. Do we have an solution to process a return without an error code with the required override today? 

[The_AntiTax_Man]

@MikeB_CPA   stay tuned.  Intuit is on it!

[Shannyj05]

Since they are taking their time in releasing these updates and we are anxiously awaiting them, May will still be right around the corner.  I know AICPA is urging the IRS to move to June 15 (including estimated tax payments) does anyone know of something we as preparers can do to URGE them that we need more time because they keep changing crap mid-season!?!?!?

[pamdory]

I sent an eletter to my senators yesterday.  AICPA is urging tax pros to let your legislators know how we feel about this issue.

[TaxGuyBill]

While this last-minute and retroactive stuff is stupid, I think May 15th is perfectly fine.  That gives us a month to ignore returns that have Unemployment while things are sorted out.  In the meanwhile, we can keep working on other returns.  Hypothetically, this extra month should make this tax season easier than most (other than the fact we need to tell clients that they need to be patient).

[The_AntiTax_Man]

Whatever works for you folks, I'm all in. 

I kind of like the deadlines though, because as a deadline draws near, when I ask a client for a document it arrives to me on the same day requested.  Whereas, a month prior, it would take a week, maybe 10 days to get that document. 

So, I propose a super-secret filing deadline, hidden from the public, that only the tax preparers know of.  That way when I make a request I can inform the client that his return is due next week and if I don't get the document today I'll need to file an extension.  Problem solved.  Give me the check mark. LOL 

[dkh]

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@The_AntiTax_Man wrote:

So, I propose a super-secret filing deadline, hidden from the public, that only the tax preparers know of.  

---

LOL what a great idea!  I want a special code word to go with this super-secret filing deadline 

[christijoguhn]

This is why I stop accepting returns 4/2 .   I've had clients saying they would be dropping off since 2/1 and still havent..   

When I say I'm done,  I'm done, yet I still have a little time personally- lol!

[pamdory]

Yep, me too.  My letter that goes out with the organizer has a pre-scheduled appointment and a deadline of the third Friday in March.  And a warning that if you don't get your act together by then, you're going on extension and it's going to cost you more in fees.  That leaves me a few weeks to just work.  It's always worked out great.  Well...until last year when I became the Whirling Dervish CPA.  Turning from prep to researching law changes to PPP help to looking for EIP to prep to research to EIDL assists to ....

[vmtowers]

• Any update on the suspension of excess Advance Premium Tax repayment? Thanks!

[henrymarcusausti]

Not as of yesterday.  I got the same "something's changed" message when I opened the returns that have been that way.   

[abctax55]

PLEASE... everyone asking this question - go to the IRS website & sign up for their alerts. 

The software companies can do NOTHING until the IRS takes action on the form.

[jeffrey]

Shouldn't we be able to override the payback of the credit, and file without error checking?

[pamdory]

I check this link multiple times daily

 https://www.irs.gov/affordable-care-act/individuals-and-families/premium-tax-credit-claiming-the-cre...

IRS hasn't issued any more guidance than this.  I'd rather  hold these returns until I know how it's going to be handled than try to deal with fallout from a work around.  

[henrymarcusausti]

Ok, don't mean to sound stupid, but I've been doing this for 40 years, and always amazed what I don't know.

I am confused how you knew that Intuit could not solve the issue since a 2nd level person at Intuit told me last week that it was a high priority problem to solve.

If I send my email address, could you please contact me?

Henry

[abctax55]

@henrymarcusausti 

Who are you talking to?

[henrymarcusausti]

That was meant for you, abc, it just was out of order.

henrymarcusaustinatyahoodotcom

[henrymarcusausti]

Sorry abc, that didn't come out right, I'm trying to juggle too many balls at the moment.  If you could please get in touch with me, I'd really appreciate it. 

[greenfarms]

Any word on ProSeries update for Premium Tax Credit?  I have people that would like their refund but I am sitting on their returns until the correction.  

[IRonMaN]

Bird is the word

[abctax55]

@greenfarms 

It Is Not a PROSERIES issue - It Is an IRS issue.

The software providers can NOT update something the IRS hasn't not yet acted upon.

I suggest signing up for IRS Alerts, please.

[henrymarcusausti]

Hey abc,

I've talked with Proseries multiple times including being watched while I'm typing this.  They are saying it's something that Proseries needs to fix, not IRS.  

The engineers are aware of the problem.  Can you please let us know where you are getting your information?  

[IRonMaN]

Really?  Intuit can't change anything until the IRS does.  And the IRS hasn't.  As a side note, I got my information from the same place she did - the IRS.

[abctax55]

irs.gov..

It's a great resource for professional tax preparers.

[jeffrey]

I know you are trying to be funny, but it clogs up email, and is annoying. Please I dislike using this resource for support probably as much as you do. But useless messages make it even worse.

[dkh]

Here @abctax55  🥃      This conversation warrants this

[jeffrey]

My question was why can't we bypass and override and allowed to efile. I had no problem excluding unemployment before the "fix" was in.

I tried and it rejected. This would be a simple solution. You think that warrants jokes and wasting of time.

Yes you are confirming that this resource is a useless POS. Thank you.

[pamdory]

I've been wondering if the reason for the delay is that IRS is working through some of the other issues affected by this repayment holiday.  On the surface it appears that it's just that - if you owed the credit advances, now you don't.  But there may be issues with the way this interacts with the Self-employed health insurance deduction as well.

Bottom line, I don't think Intuit is going to make a work around that could ultimately make a lot more work for them.

I'll just keep checking my IRS link.

[abctax55]

"....But useless messages make it even worse."

I CAN'T agree more /S