Why did the D-30 efile fail?

[rbynaker]

Maybe something's changed but I always had to paper file these since the software couldn't file both a D-40 and a D-30 under the same SSN.  (I'm assuming we're talking about a DC return?)

[Just-Lisa-Now-]

Thats like saying "why won't my car start?"

Need more info, otherwise were all just guessing.

[Bob53371]

Yes...indeed. I pushed the button too quickly. I spoke to DC and found out that a Partnership can file a D-65 and not a D-30. However, Proseries has an error. Proseries states that if gross income is more than $12000, then file a D-30. If gross income is less than $12000 than file a D-65. This is incorrect. Filing a D-30 is for individual unincorporated businesses with a minimum tax of $250. The D-65 is a pass-thru with no payment of a $250 tax. I checked the box for D-65 but got an error in Proseries and continued to e-file anyway (there is a work around to e-file a return with errors). 

[Bob53371]

Yes....you can e-file the D-30....but there is a major catch!!

The individual or business must file an FR500 to register with https://mytax.dc.gov/ prior to filing. There needs to an account in DC to know where to put the tax. So the filer must be registered to e-file with Proseries. 

[sjrcpa]

D-30 vs D-65 is more than just the $12K gross income threshold. 

Check the instructions for both forms.

It involves whether capital is a materially income producing factor, whether the work is performed by the owner(s), and whether the business cannot customarily be incorporated.

And yes this year DC started rejected efiled extensions if the business is not registered in DC. Sounds like you found out they are rejecting actual returns, too. I haven't got that far yet.

[Bob53371]

You can e-file the D-30 and the D-65. The issue with E-filing the D-30 is that you will need to be registered in DC by completing the FR-500 which allows DC to know your EIN and to give credit for any taxes paid. The D-65 does not need an FR-500 on file since it is only an information return.
This whole issue was started because the DC State Return for Partnerships would not allow me to choose the D-65 without an error. I have never seen that error in the past for the same client I have been helping over the past eight years.