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Tax Changes for 2019 Filing Season

As one is out doing their last-minute Christmas shopping, tax season is approaching. There are many changes coming for the 2019 tax filing season.

There is a new state filing electronic requirement related to application and software updates. In the background, each state has established specific standards for software vendors. Here at Flat Top Bookkeeping, we do not want you to worry about this, as we will closely work with state partners to find the optimal solutions that will accommodate you as the client. This new requirement has been implemented to reduce the error rate of returns filed without the latest update(s). This will ensure a more consistent standard throughout the industry.

The requirement mandates that returns will not be e-filed 10 or more business days after a production update. This will ensure that software is current all filing season. Currently, there are 38 states that have implemented this requirement. With tax season approaching, there shall be many more to implement the 10-day business rule for state electronic filing.

The list includes:

AlabamaArkansasArizonaColoradoConnecticutDelaware
District of ColumbiaGeorgiaIowaIllinoisIdahoKentucky
KansasLouisianaMaineMarylandMassachusettsMississippi
MissouriMontanaNebraskaNew HampshireNew JerseyNorth Carolina
North DakotaNew MexicoOhioOklahomaOregonPennsylvania
Rhode IslandSouth CarolinaTennesseeUtahVermontVirginia
West VirginiaWisconsin

Here’s an example of how the new rule would work for an Alabama state return:

  •         February 3 – Return is created on version 2.4 which contains a change to AL
  •         February 4 – User calculates return as version 2.4 and the review period begins
  •         February 7 – Return is exported to Electronic Filing and Form 8879 is sent for  signature
  •         February 10 – Release of version 2.5, containing a change to AL
  •         February 16 – Form 8879 received from the taxpayer and released from Electronic Filing (within the 10-day time frame)
  •         February 22 – All returns on 2.4 must be recalculated to 2.5 prior to e-filing (this is 10 business days from the release date of February 10, 2019)

With the new 10-day business rule for state electronic filing, here at Flat Top Bookkeeping, we shall take the time to prepare. We are here to ease the pain of filing taxes by allowing us here at Flat Top Bookkeeping to assist you and ease your mind.

So, finish your holiday shopping and let us here at Flat Top Bookkeeping ease your mind with all the tax changes. We are here to help educate along the way while easing your mind that your taxes are in the best possible hands.

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