Efile Question

[S T]

I am preparing a tax return for a client that only has UI benefits and withholding from UI Benefits.
Under the $ 2,400 and all monies withheld should be refunded, so need to file a return for the Fed Withholding - all income will show as -0-

Error Message: EF Audit - Federal Withholdings
The total federal income tax withheld cannot be equal to or greater than the sum of wages, taxable interest, ordinary dividends, IRA, distributions received, pensions annuities received, unemployment compensation, Social Security Benefits, other income, etc.
Correct the error or paper file the return. It is expected this audit will remain in effect for the entire 2009 filing season due to the increased scrutiny from the IRS in attempting to reduce fraudulent returns from being filed. This must be resolved before the return can be e-filed.

Ugh!

So I guess this means we can not file a tax return that produces -0- income to obtain a refund on Federal Withholdings

So much for compliance with e-file and trying to accomodate.

Anyone else had this issue?

Sandy

[David1980]

That would be your tax dollars at work,...

0295 o
o
o
o
Form 1040 – The Total Federal Income Tax Withheld (SEQ 1160)
cannot be equal to or greater than the sum of Wages, Salaries,
Tips (SEQ 0375), Taxable Interest (SEQ 0380), Total Ordinary
Dividends (SEQ 0394), IRA Distributions Received (SEQ 0475), or
Taxable IRA Amount (SEQ 0480), Pensions Annuities Received
Including Foreign (SEQ 0485), or Taxable Pensions Amount
Including Foreign (SEQ 0495), Unemployment Compensation
(SEQ 0552), Social Security Benefits (SEQ 0553), Amount of Other
Income (SEQ 0570) and Gross Receipts of Schedule C/C-EZ (SEQ
0200).

It's an IRS reject code 295.

[S T]

Appears

That there is no correction

Only a Paper File

Sandy

[taxea]

I trust you entered the 1099. Is the withholding more than the gross received?

[Dusty2004]

Sandy

What you could do is give then $1.00 worth of interest income. It should go then.

Dusty

[Lion]

Or

Paper file or force the full amount of UI and then put a -2400 on line 21 with an explanation or...

[taxxcpa]

Filing with zero AGI

I had someone that wanted to file with zero income. I put in a small amount on line 21 this year. Last year I put a small amount of interest income which enabled e-filing.

[David1980]

What you could do is give then $1.00 worth of interest income. It should go then.

Dusty

That's a similar error and I've done $1 interest to get passed this one. For this one, the taxable amount of unemployment or other income would need to exceed the withholding.

Ultimately that wouldn't change the refund amount any, but you're putting more than just $1 of income on the return. Lion's workaround doesn't seem bad, though I'd probably paper file myself out of fear the computers could get confused.

[fliszt]

Sandy,

I have a client similar to yours every year for past 6 + yrs. I put $1 in as income and everything flies thru. I just can't believe the IRS would want a paper return to have to process and spend more $/effort.
lam

[Jesse]

That would be your tax dollars at work,...

0295 o
o
o
o
Form 1040 – The Total Federal Income Tax Withheld (SEQ 1160)
cannot be equal to or greater than the sum of Wages, Salaries,
Tips (SEQ 0375), Taxable Interest (SEQ 0380), Total Ordinary
Dividends (SEQ 0394), IRA Distributions Received (SEQ 0475), or
Taxable IRA Amount (SEQ 0480), Pensions Annuities Received
Including Foreign (SEQ 0485), or Taxable Pensions Amount
Including Foreign (SEQ 0495), Unemployment Compensation
(SEQ 0552), Social Security Benefits (SEQ 0553), Amount of Other
Income (SEQ 0570) and Gross Receipts of Schedule C/C-EZ (SEQ
0200).

It's an IRS reject code 295.

I don't think the dollar would work in this situation because it sounds like the Unemployment is less than $2,400 there = zero and the sum of the above quote is less than the total w/held.

Lion's solution may work or an input in the amount equal to the amount withheld on line 21?

[JG EA]

Did you try that idea about putting in the information in the 1099G screen?

[taxea]

What you could do is give then $1.00 worth of interest income. It should go then.

Dusty

How can you give them something they didn't get?

[DonPriebe]

Another example ...

That there is no correction ... Only a Paper File

I had to paper file this one also ... http://w2in.com/FunnyW2.pdf

[Jesse]

Oh my

What you could do is give then $1.00 worth of interest income. It should go then.

Dusty

How can you give them something they didn't get?

You can't, perhaps such an unethical preparer should be turned in for fraud.

[S T]

No Efile

Well I have tried suggestions
Except not the $ 1 for interest

My software won't allow me to override the UI amount
Seems like the error message really is stating that I need income at least as much as the withholding
I tried "other income" line 21 for $ 1

Nothing works, at least not with my software

So a paper filed return, but I appreciate all of the thoughts and suggestions,

Sandy