The Inner Income Service warned Thursday of a programming concern that’s affecting enterprise taxpayers who want transcripts for requesting COVID-19 employment tax reduction.
The issue impacts transcripts requests for Kind 941, the Employer’s Quarterly Federal Tax Return. Tax professionals have been submitting amended variations of the Kind 941 to assist their purchasers declare the worker retention credit score (see story). However the programming bug gained’t be mounted till Sept. 26, based on the IRS, which might additional delay tax refunds for the companies that want them.
The issue is simply the newest in a sequence of expertise issues plaguing the IRS, which has struggled to replace its antiquated programs to deal with all the various modifications in tax coverage and tax reduction which have arisen for the reason that begin of the pandemic.
The IRS headquarters constructing in Washington, D.C.
Andrew Harrer/Bloomberg
“There’s a Transcript Supply System (TDS) programming concern impacting enterprise taxpayers who reported info associated to COVID-19 employment tax reduction on Kind 941,” stated the IRS in an e-mail Thursday to tax professionals. “Account Transcripts requested for Kind 941 for all quarters in Tax Yr 2021 might not generate correctly. Transcripts usually are not being delivered to the Safe Object Repository (SOR) Mailbox for e-Providers customers. When viewing the transcript on-line, a message will show on the transcript indicating TDS has encountered an unrecoverable error processing the request. With the Postal Mail supply methodology, no transcript is mailed.”
That can possible imply additional frustrations for beleaguered tax professionals and their purchasers since even postal supply is affected by the bug, and the overworked customer support reps on the IRS gained’t have the ability to assist. Tax professionals can even be dealing with complicated messages from the system.
“Because the Document of Account Transcript is a mixture of the Tax Return and Account Transcripts, the Document of Account Transcript can also be impacted and might show a message of ‘No document of return filed,’” stated the IRS in its e-mail to tax professionals. “IRS Buyer Service Representatives are additionally unable to acquire these transcripts.”
The IRS expects the programming concern to be mounted on Sept. 26, 2021.