Recover Rebate Credit

[Car Guy]

All of my returns with a Recovery Rebate Credit are being changed reducing the credit to zero. Why is this happening? Is anyone else having this problem? I've used 1444 and 1444-B actual amounts and the calculated credit is still being denied.

[Greta]

My clients' returns with a rebate credit seem to be delayed, though not yet denied. It's hard to judge when a client insists he did not get the check, perhaps the IRS did send it, but if it wasn't cashed, I assume the dust will settle eventually.

[TAXOH]

The IRS is denying it?

[dbaccounting]

I am getting the notice the return has been changed - Did the IRS in fact change/update the return or do we need to file an amended.  Since it changed the payment due - should the taxpayer pay the higher amount now?

[TAXOH]

If you're talking about when you open the tax return in ProSeries you are getting the message, it is a bug in the program from the latest update.  

[dbaccounting]

So okay to proceed as originally submitted?  I have not yet given to client (first year return) so I'd like to get it correct the first time and not have to file an amended.

[dkh]

Are you saying you've entered the EIPs on line 16 and 19 of the RRC worksheet and the client is eligible for additional RRC on the return but it is being denied by IRS ?   

Edit:   never mind OP answered before I was finished posting

[Just-Lisa-Now-]

Look at the actual 1040, the return DID NOT change.   

Its a false message, a bug that came along with the update on the 11th, just ignore it.  

[TAXOH]

Yes as long as the amounts you entered on lines 16 & 19 of the recovery rebate worksheet are the amounts they actually received for the 1st and 2nd payments.  Also check lines 6 and 9 and make sure it only has dependents that are 16 and under included in that amount.

[Car Guy]

When I open the return after it has been e-filed and accepted, I get a notice that my return has been changed from the original return. Each time, the change is to reduce the Recovery Rebate to zero.

[Car Guy]

That's what I'm hoping, but there have been several updates and it continues to happen. I guess I will contact these clients to see if they did or didn't receive the credit in there refund.

[Car Guy]

I am telling my clients that I am getting this change notice and that at this point, I can't say if they will actually get the Rebate Credit or not. Hopefully it is a software issue and their returns are good as filed.

[qbteachmt · Accepted solution]

https://proconnect.intuit.com/community/proseries-tax-news-updates/discussion/proseries-2020-produce...

"We are aware that ProSeries 2020 e-filed 1040 returns with the Recovery Rebate Credit are displaying the messaging, “ProSeries has detected that the amounts calculated in this return have changed since the return was e-filed.” We are currently investigating the root cause for this message relating to the Recovery Rebate Credit amount. At this time all information indicates that the returns filed with the Recovery Rebate Credit amount were filed with the correct original amount entered and returns impacted by this will still show the correct Recovery Rebated Credit amount on line 30 of Form 1040. The message produced by the program appears to be erroneous and we will update this with more information as it becomes available."

That's in the News & Updates section, from Saturday.

[ceciengcpasf]

Has anybody heard from a client that they got the full recovery amount that was filed on the return ?  That's the only way we can be sure that the error message is just an error on the program , and not a refusal of the IRS to pay the credit.