Iowa Corporate Consolidated Tax Return

The State of Iowa is now mandating that all business tax returns need to be filed electronically.

I have a Consolidated Corporate Tax Return that I file with the IRS electronically, but can not file electronically with the State of Iowa.  I have no problem with filing an Iowa paper return (and have had to do so for the last 15 years), but I now am no longer able to complete due the new Iowa Electronic Filing mandate.  That is because Lacerte and the State of Iowa have not been able to agree on the processing of Schedules H2, H3, I, J1, J2, L, and M.  Some of these schedules are required to show the income and expense detail split between the 2 companies on the consolidated return.  

I am currently in communication with the State of Iowa to see what can possibly done to get this filed, but am not sure they will work with me.  The exemption form request states in the instructions "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.).  Please work this out with the State of Iowa to get these added to your electronic filing capabilities.

I have been working with Lacerte for over 20 years and do not want to switch software providers, but I am possibly left with no choice in the matter if I am no longer able to efile this return.

Thanks,

Eric J B., CPA