Details on Intuit filing issues

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Minnesota Department of Revenue provides update and details on issues with Intuit products in Minnesota

 

ST. PAUL, Minn. – Last week the Minnesota Department of Revenue announced several issues with Intuit tax preparation products (TurboTax, Lacerte, Intuit online, ProSeries). This document provides a status of those issues as of 12:00 p.m. on March 11, 2013 and Intuit’s plan to fix them.

 

The Department of Revenue is not affiliated with Intuit and we find these errors unacceptable. We expect Intuit to correct these problems immediately.

 

Intuit Issue Update - March 11

Product Issue

Brief Description

Customer Impact

State Election Campaign Fund Selection (Form M1 and M1PR)

 

 

 

If $5 was directed to a political party or to the state’s general campaign fund, Intuit did not accurately communicate your choice to the department.

 

Returns completed after February 28 do not have this issue.

If you filed electronically you do not need to do anything. Intuit will provide the department with a list and we will use that list to make corrections.

If you filed on paper, Intuit sent a letter with directions on how to identify if you have an issue and what to do. If you find an error or need assistance determining if your return is impacted, you can contact Intuit directly at 1-866-888-4609.

Negative Federal Adjusted Gross Income (Form M1)

Turbo Tax and ProSeries issue - When the Federal Adjusted Gross Income was a negative number, the value submitted to the department was a positive number.

 

Returns completed after February 4 do not have this issue.

Intuit will provide the department with a list and we will use that list to make corrections.

 

There may be some who received a letter or bill from the department. If that happened, you should follow the instructions on the letter you received. They may be delays to refunds.      

Educational subtraction Income additions and subtractions

(Form M1M)

Lacerte issue - If the subtraction was claimed on Line 19, only the dollar amount for the first dependent was communicated to the department.

The schedule doesn’t substantiate the figures on the M1, which may result in a change of the return.

 

Returns completed after March 4 will not have this issue.

Intuit has provided the department with a list and we are using that list to make corrections.

 

Some taxpayers may have received a letter or bill from the department asking to substantiate information. If you received a letter you need to respond as directed in the letter to substantiate your information.

There may be delays to refunds.


Child and Dependent Care Credit (M1CD)

Lacerte issue-

The last name of the care provider was blended with the first name.

 

Returns completed after March 11 will not have this issue.

Taxpayers do not need to do anything. The department will review these returns and follow-up with taxpayers if necessary.    


Individual Form for Marriage Credit (M1MA)

Lacerte issue-

Line 10 of the form the amount transmitted to the department was $8,525 instead of $8,750.

 

Returns completed after March 11 will not have this issue.

Taxpayers do not need to do anything. While the amount listed was incorrect, the actual tax liability was correctly calculated. If the taxpayer looks at a paper copy of their return and reviews the calculations they will see what appears to be a math issue.

 

The department will review the returns to verify the accurate calculations were submitted.

Marriage Credit (M1MA)

TurboTax & ProSeries issue – Calculation errors for individual income tax returns for married filing joint when both have earned income and the lowest paid of the two taxpayers makes a minimum of $88,000.

 

Returns completed after March 11 will not have this issue.

Intuit sent an e-mail to taxpayers advising them: If you have not completed your Minnesota return, and you are using the Turbo Tax desktop CD software product, you should update your product by checking for updates.

 

If you already completed and filed your return, you will need to file an amended return. You can contact Intuit directly at 1-866-888-4609 for assistance with filing the amended return.

Property Tax Form refund calculation error (Form M1PR)

Lacerte issue- Some homeowners and mobile home owners with household income over $16,000 and property tax over $3,500 are calculating a refund larger than the taxpayer is entitled to.

 

Returns completed after March 11 will not have this issue.

If taxpayer filed electronically they do not need to do anything. Intuit will provide the department with a list and we will use that list to make corrections.

 

There may be some who received a letter or bill from the department. If that happened, you should follow the instructions on the letter you received. They may be delays to refunds.      

 

If you already completed and filed a paper return, you will need to file an amended return. You can contact Intuit directly at 1-866-888-4609 for assistance with filing the amended return.

Property tax form direct deposit election issue (From M1PR)

Lacerte issue-

Property tax refunds filed without certain schedules with an election for direct deposit, do not have the direct deposit selection communicated to the department

 

Returns completed after March 8 will not have this issue.

Intuit will provide the department with a list and we will use that list to make corrections.

 

Any returns that cannot be corrected, Intuit will send an e-mail to the preparer advising them the refund will be issued by paper and the taxpayer will not qualify for early release of their refund.

S-Corporation Amend- Form (M8X) 2012

TurboTax and ProSeries issue- Lines 5 & 7 should not have been enterable fields. If something was entered in those fields, they may be incorrect. Line 16 has a calculation error resulting in incorrect tax.

 

Returns completed after March 11 will not have this issue.

Intuit has sent an e-mail advising taxpayers: For returns not filed, Intuit will have a software update available on March 11 that will correct the issue.

 

If you have already completed and filed a return, you will need to file an amended return. You can contact Intuit directly at 1-866-888-4609 for assistance with filing the amended return.

S-Corporation Form (M8A)

Turbo Tax Business and ProSeries issue - For business doing business in multiple states, reporting composite income tax and apportioning income, the income tax amount is wrong due to apportionment factor weighting for S-Corporations.

 

Returns completed after March 11 will not have this issue.

Intuit has sent an e-mail advising taxpayers: For returns not filed, Intuit will have a software update available on March 11.

 

If you have already completed and filed a return, you will need to file an amended return. You can contact Intuit directly at 1-866-888-4609 for assistance with filing the amended return.

Fiduciary Form (KF)

ProSeries issue- There are calculation errors. On composite Income Tax Smart Worksheet, the total amount is wrong resulting in the fiduciary tax liability to be overstated and an overpayment by the fiduciary.

 

Returns completed after March 11 will not have this issue.

Intuit has sent an e-mail advising taxpayers: For returns not filed, Intuit will have a software update available on March 11.

 

If you have already completed and filed a return, you will need to file an amended return. You can contact Intuit directly at 1-866-888-4609 for assistance with filing the amended return.

S-Corporation Section 179 expense

Turbo Tax Business issue - For those electing to pay composite tax, Section 179 expense is not being deducted from the total distributable income

 

Returns completed after March 6 will not have this issue.

Intuit has sent an e-mail and letter advising taxpayers: For returns not filed, Intuit will have a software update available on March 11.

 

If you have already completed and filed a return, you will need to file an amended return. You can contact Intuit directly at 1-866-888-4609 for assistance with filing the amended return.

Partnership 179 depreciation

Turbo Tax Business issue - Section 179 depreciation for 2006 was transferred from federal return to the state return into the 2007 amount column. This makes the depreciation incorrect.

 

Returns completed after March 6 will not have this issue.

Intuit has sent an e-mail and letter advising taxpayers: For returns not filed, Intuit will have a software update available on March 11.

 

If you have already completed and filed a return, you will need to file an amended return. You can contact Intuit directly at 1-866-888-4609 for assistance with filing the amended return.

 

The department will continue to monitor the situation closely. Concerned taxpayers may contact Intuit at 1-866-888-4609.

 

To read the department’s news release from March 8, click here.

 

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