Iowa update 3/21/24 messed up 2022 federal refund reporting

Forum|Forum|2 years ago
March 21, 2024
2 replies
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All Iowa returns that are reporting a federal refund from 2022, which is about 75% of the returns are wrong as of the update this morning (3/21/24). The federal refund amount from 2022 is showing up as double the amount on Line 14 of Iowa Schedule A. This increases the Iowa taxable income by double the amount. The real cause of this is coming from the federal tax worksheet Line Q showing a negative amount. Iowa returns which are reporting federal owed from 2022 are not affected.

You can correct it by going into the Federal Tax Worksheet and deleting the amount on line Q if it is a negative amount equal to the amount above it below line F. You also have to delete the amount below line R. Returns that did owe federal tax last year and do not have a number on line A are not effected. The update also changed all past returns that have not yet been e-filed. So check all returns that have been printed but not filed before e-filing them. @The_AntiTax_Man

ProSeries Professional

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The_AntiTax_Man

Level 7

@taxiowa thanks for the heads up!

@1569 the Intuit programmers broke something that was working. Can you tell us if and when this will be fixed?

taxiowaAuthor

Level 8

Proseries did something tonight about 10:10. They started rejecting all Iowa returns. No explanation, but said there is an update next week that will happen before we can file anymore. I filed 38 Thursday and 13 today at like 10:00 and they were not rejected. I had fixed these already so I was not worried about any errors. But the 10 I filed shortly after were rejected. So while I am happy Proseries listened to me; there will be a backlog of files to release next Thursday. It was just luck I caught mistake before I filed any because almost every return is wrong.

But that brings us to the crux of the problem. Does Intuit check the updates to see if any errors were created before sending updates. I have an extra computer in back room that I could lend them. So while this error was not easily spotted, my secretary could have found it if she had an hour to try different things and compared previous results on Iowa return. It is pretty easy to compare a return filed Wednesday with one after update and see if refund or amount owed changed. And if so what changed.

The_AntiTax_Man

Level 7

@taxiowa Product Quality Control in tax software has slowly and steadily declined over the past decade. It is cheaper for the company to just release the software and let the users find the bugs in the code. The users are the final quality control.

Ok, so the users find a bug. There is no actual system in place to notify the company of the bug. The company usually doesn't alert all of the users of the bug. The company doesn't usually provide any updates about when the bug will be fixed, or a work around solution, or that an update to the fix the bug is in the most recent update. The company doesn't usually tell the users when they decide they are not able or willing to fix the bug and you are on your own to find the work around that suits you. Then, if they do release a software update that fixes the bug, the fix may very well change tax returns that have already been filed. Or, it might change tax returns that you have already employed a work around on and after the update your work around is now making the returns compute incorrectly.

So yeah, this is a big problem for the software users that has been steadily getting worse year by year. You must constantly be on guard when an update comes through. Did the current update change anything on the returns that were completed since the previous update, or worse yet, change something on returns that have already been e-filed successfully.

Iowa did change most of the Iowa tax laws and, of course, almost all of the Iowa tax forms. Obviously it's a very large programming project. But the program code should have been completed last summer/fall and the software should have been ready to roll in January. Instead, the programmers seem to be writing the code in the middle of the tax filing season. It's no wonder that the programmers have created new bugs during the filing season.

FUBAR!

IRonMaN

Level 15

I have one token Iowa return that I prepared Thursday. I couldn’t figure out why they were paying Iowa tax until I saw the amount of federal refund. I was thinking they had some kind of law that made Mn residents pay double for the privilege of crossing that state line. I did eventually find that box to get rid of the double taxation without representation.

Slava Ukraini!

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