Known e-file issues and solutions - Internal Revenue Service

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					TY2007 Known e-file issues and solutions
Updated December 16, 2008

Form Type

Schema/Schema Element

Work-Around

Status

Form 851

Form 851, Part II, column "Owned by corporation Part II has a schema limitation. The last column under no." has schema limitation Stockholdings at the beginning of the year is designed to indicate the affiliated member from Part I for which the Stockholdings information is being reported in Part II. Currently the schema only allows one corporation number to be entered for this element.

If the taxpayer needs to report more than one affiliated member owner for a subsidiary listed in Part II complete the XML part II last column "Owned by corporation no.: for each applicable subsidiary by entering the corporation number for the affiliated member with the majority ownership. If there is no majority owner, use the owner's number that comes first in Part I. Provide a PDF Form 851 Part II showing the information for all the owners for each subsidiary. This PDF file should be attached to the consolidated return and named Form851PartII.PDF and described as Form 851 part II Full Ownership Information.

Schema will be issued in future release. Continue to use workaround.

Form 1118

"ForeignCountryOrUSPossession"

The TY2007 F1118 Instructions reflect "Other Countries" code On both the IRS Form 1118 and in your XML File, leave the field blank if you have an "Other as "OC" and the eFileTypes schema erroneously reflects Country" not listed elsewhere. "Other Country" code as "XX". The eFileTypes schema will be updated to remove "XX" and add "OC" for "Other Countries".

eFileTypes schema will be corrected in a future TY2008 schema release. Continue to use workaround.

Form 1118 Schedule A

Missing write in choices on Form 1118 Schedule A

The December 2007 PDF for Form 1118 Schedule A indicated new write-ins can be added to Schedule A, column 1. These new write-ins are missing from the XML schema. They are: "NOLs", "income from RICs", and "hightaxed income" (see Schedule A instructions on page 5).

If Form 1118 Schedule A, column 1, is needed to write-in any of the three new choices, include the Schema corrections will be issued in a applicable choice using the General Dependency schema and use "Form 1118 Schedule A, column future release. Change submitted. 1 workaround" as the description. Will be in future TY2008 schema release. Continue to use workaround.

Form 1118 Schedule B

Missing multi-year carryover of foreign taxes data on Schedule B (Form 1118) Part II line 4

Taxpayer unable to report multi-year carryover of foreign taxes data on Schedule B (Form 1118) part II line 4

If the taxpayer needs to report carryover of foreign taxes as instructed on Schedule B (Form 1118) as multi-year carryover data, then using the following workaround until the attachment TotalCarryoverOfForeignTaxesSch is revised for TY2008. Attach the multi-year carryover data as a PDF. This PDF file should be attached to the consolidated return and named TotalCarryoverOfForeginTaxes-1118 (basket).PDF and described as Total Carryover Of Foreign Taxes - 1118 (basket) where the basket is the category on the Form 1118 to which this carryover is attached.

Will be revised in TY2008 schema release. Change submitted. Will be in future TY2008 schema release. Continue to use workaround.

Form 1118 Schedule B

Missing literal write-in indicator on Schedule B (Form 1118) line 5 The 2007 Instructions for Schedule B (Form 1118) instruct taxpayers reclassifying high-taxed income from passive category income to general category income, to include the related tax adjustment in the line 5 total. The taxpayer is also instructed to "enter" on the dotted line to the left of the entry space for line 5 "HTKO" and the amount of the tax adjustment. Indicate whether adjustment is positive or (negative). See General Category Income on page 2 for additional information.

Taxpayers who need to reclassify high-taxed income from passive category income to general category income, as instructed on Schedule B (Form 1118) line 5, should include this amount in the line 5 total, and use the General Dependency schema to indicate the high tax kick out. The Description of the General Dependency should be "Schedule B (Form 1118) Line 5 HTKO".

Literal write-in indicator will be added to schema in a future release. Change submitted. Will be in future TY2008 schema release. Continue to use workaround.

Form 1118 Schedule J

Missing literal write-in indicator on Top of form Schedule J (Form 1118) 2007 Instructions for Schedule J (Form As an alternative, the 1118) instruct taxpayers to make the following notation on the top of Schedule J: "U.S. Loss Allocation Under Notice 893" if a corporation chooses to follow the principles of Notice 89-3, 1989-1C.B.623, rather than applying the Temporary Regulations section 1.904(g)-3T to its 2007 tax year.

Taxpayers who choose to follow the principles of Notice 89-3,1989-1C.B. 623, rather than applying the Temporary Regulations section 1.904(g)-3T to their 2007 tax year should use the General Dependency schema and use "Top of Schedule J notation: "U.S. Loss Allocation Under Notice 89-3" workaround" as the description.

Literal write-in indicator will be added to schema in a future release. Change submitted. Will be in future TY2008 schema release. Continue to use workaround.

Form 1118 Schedule J

Missing literal write-in indicator on Schedule J (Form 1118) linethe 2007 Instructions for Schedule J (Form 1118) In addition, 10 instruct taxpayers to cross out the line description for line 10 and write in "Allocation of domestic losses" if a corporation chooses to follow the principles of notice 89-3,1989-1C.B.623, rather than applying the Temporary Regulations section 1.904(g)-3T to its 2007 tax year.

Taxpayers who choose to follow the principles of Notice 89-3,1989-1C.B. 623, rather than applying the Temporary Regulations section 1.904(g)-3T to their 2007 tax year should leave line 10 blank, but use the General Dependency schema and use line 10 description "Allocation of domestic losses workaround" as the description.

Literal write-in, "Allocation of domestic losses" and the U.S. source losses allocated to separate categories with income amounts will be added to schema in a future release. Change submitted. Will be in future TY2008 schema release. Continue to use workaround.

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Form Type

Schema/Schema Element

Work-Around

Status

Form 1120

Paid preparer information

When any paid preparer information is included in the electronic file, SSN/PTIN is a required field. But foreign preparers do not have these numbers assigned to them.

As a short term solution until a change can be made to the preparer SSN/PTIN field in TY2008 schemas, in the case of foreign return preparers, the preparer name and SSN/PTIN may be left blank in the XML file. The preparer can sign the return and supply the firm’s Employer Identification Number through the Form 8453-C, filed as a PDF attachment with the corporation's electronically filed income tax return. As such, it is considered part of the return for purposes of electronic filing of the Form 1120. This practice will fulfill the requirements of I.R.C. Sections 6109(a)(4) and 6695(c), and Treasury Regulation Sections 1.6109-2(a) and 1.6695-1(c).

The TY2008 schema will be revised to allow an indication that a foreign preparer was used. Continue to use workaround.

Form 1120 Sch M-3 EliminationsOr Adjustments

Part II, Line 17a

Currently, Part II, Line 17a, is restricted to "USAmountNNType". This will be changed to "USAmountType" to allow both negative and positive numbers in the Schedule M3 (Form 1120) "Eliminations Or Adjustments" schema.

For Part II, Line 17a, if you need to enter a negative number within the brackets, use the general The schema has been undated for TY dependency xml schema and use "IRS 1120 Schedule M3 Part II Line17a workaround" as the 2007 in version TY2007v2.4 description. Currently, Form 1120, Sch M-3, Part II, Line 17a only allows non-negative numbers. Enter the negative number in the General Dependency. Make a book adjustment to move the Cost of Goods Sold and then document the book adjustment to show that the change was made only to facilitate electronic filing of the return.

1120-F

Schemas for 1120-F or Schedules M-1/M-2, M-3, Instructions for Form 1120-F and it's associated schedules (M- For any schedule, election, statement, etc. that is needed but unavailable in the schema for Forms H, I or P 1/M-2, M-3, H, I and P) were published February 2008 so 1120-F or Schedules M-1/M-2, M-3, H, I or P, use the General Dependency and title the required schedules, elections or statements may be missing Dependency appropriately. from the schemas.

The changes will be made in future TY2008 schema. Continue to use work around.

Form 2220, Schedule A Part I, Line 9c columns a through d

"First4MonthsTotalTaxableIncome" "First6MonthsTotalTaxableIncome" "First9MonthsTotalTaxableIncome" "EntireYearTotalTaxableIncome"

The efile type in version 2.3 calls for a "LargeRatioType" in Since there should not be any entries on line 9b until later in the year, line 9a and 9c should have error, the correct efile type should be "USAmountType" on all the same entries on them. Please make line 9c a redundant data field and pick up the amount 4 columns for 9c. from line 9a for each of the columns on the Form 2220 for line 9c.

The schema has been corrected for TY 2007 in version TY2007v2.4

4136

Form 4136, Line 8d(a) - Type of Use

The schema currently allows for Type of Use codes 1, 9,10, 11, 13, 14, 15 which are related to Aviation Grade Kerosene. Taxpayers need to be able to insert Type of use codes for both Aviation Grade Kerosene and Noncommercial Aviation Kerosene (1, 9, 10, 11, 13, 15, 16). This new form is designed to be used only by taxpayers who have a 2007-2008 fiscal tax year; and wish to take advantage of the new 50-percent special depreciation allowance for property that was placed in service after December 31, 2007. This provision was added by Act section 103 of P.L. 110-185, the Economic Stimulus Act of 2008. On page 1, Line 14, and on page 2, Line 25 were revised to provide space for this “bonus depreciation.” Details will be provided in the instructions. We have several schema issues relating to Form 4562-FY. Issue 1: Form 4562-FY schema is not available until beginning of June 2008 - TY2007v2.4. Issue 2: The xml schema for new Form 4562-FY TY2007v2.4 contains erroneous maxInclusive values on lines 1 and 3. Issue 3: The TY2007v2.4 schema does not allow the 4562-FY at the line level of any tax forms that it can be attached to. Therefore, filers must attach the Form 4562-FY at the Return level to avoid rejects.

Use the General Dependency and describe it "Form 4136 Line 8d(a) Type of Use Workaround".

The schema will be changed to allow for both Aviation Grade Kerosene Type and Noncommercial Aviation Kerosene Type. This change will be submitted WR#7. TY2007v2.4 will contain the schema for Form 4562-FY. However, with incorrect maxInclusive values on lines 1 and 3. Corrected Form 4562-FY TY2007 schema, without the erroneous maxInclusive values on lines 1 and 3, will be available in the near future. Corrected in TY2007v2.5. As of Jan 2009, Form 4562-FY will no longer apply.

Form 4562-FY

There are several options for Fiscal Year filers. a) FY filers may continue to efile Form 4562 (TY2007v2.3) instead of the new F4562-FY but must ensure that their calculations for Line 14 and 25 on page 1 are correct. b) FY filers, who can wait until the TY2007v2.4 schema is available, can submit the F4562-FY; however, only if the maxInclusive values on lines 1 and 3 are not exceeded. Forms with higher values will reject. FY filers also have to ensure that the F4562-FY is attached at the Return level, not the line level. The TY2007v2.3 schema version does not include these errors and some taxpayers may be able to submit their returns using this prior schema version. c) Some FY filers may be able to wait with their tax return submission until the corrected schema version is avaiable on irs.gov. d) FY filers who cannot wait until the corrected schema version, without any maxInclusive values, is available, may provide their maxInclusive values in a General Dependency and attach it to the return and use "Form 4562-FY, Part I, lines 1 and 3, workaround" as the Description. Filers must indicate in this dependency which line the amount(s) apply to.

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Form Type

Schema/Schema Element

Work-Around

Status

Form 4562

The TY2007v2.4 xml schema includes erroneous maxInclusive values on lines 1 and 3. Filers entering values that are higher than those in the schema will receive a reject.

There are several options: 1) The TY2007v2.3 schema version does not include these errors and some taxpayers may be able to submit their returns using this prior schema version. 2) Some filers may be able to wait until the corrected schema, without any maxInclusive values, is published. 3) Filers who cannot use one of the above options and need to file with higher maxInclusive values, may include use a General Dependency to provide their values, attach it to the return and use "Form 4562, Part I, lines 1 and 3, workaround" as the Description. Filers must indicate in their dependency which line their amount(s) apply to.

TY2007v2.4 will contain the schema for Form 4562. However, with incorrect maxInclusive values on lines 1 and 3. Corrected Form 4562 TY2007 schema, without the erroneous maxInclusive values on lines 1 and 3, will be available in the near future. Corrected in TY2007v2.5.

5471

PersonName, Page 1, Line 2a

Currently the Form 5471 schema does not allow for a SSN on Taxpayers should use the PersonName element already on line 2a and leave the EIN element Page 1, Line 2a of the form. blank. Enter the person's name. Then on the same line, enter the letters "SSN" and the Social Security Number. This line has a total of 35 characters to enter both the name and SSN so taxpayers may have to abbreviate. Examples: John Doe SSN 999999999 enter as John Doe SSN 999999999 Constance Amelia Greenfinch SSN 999999999 enter as C A Greenfinch SSN 999999999

Will be corrected in future schema release. Continue to use workaround.

5713

The Form 5713 schema erroneously shows Line 13a as required. Line 13a is not required if the answers to Lines 11 and 12 are both "No.".

If you are filing Form 5713 for tax year 2007 or 2008 and the answers to Lines 11 and 12 are both “No”, then you can attach Form 5713 as a .pdf. Use "Form 5713 Document" as the Description for the .pdf attachment. If you prefer not to attach Form 5713 as a .pdf, you can select “No” as the responses for Line 13a to prevent a reject. The schema will be corrected for Tax Year 2009.

The changes will be made in a future schema release

5735

The name on the Form 5735 has been changed to American Samoa Economic Development Credit. This credit is used to determine the allowable amount for several other credits and is to be included on the same line as the Qualified Electric Vehicle Credit and identified by a “write-in” explanation.

Taxpayers e-filing their returns needing to include the “write-in” American Samoa Economic Development Credit explanation on the forms listed below will need to use the GeneralDependencySchema and reference it from the line indicated below for that applicable form. The “write-in” explanation on this schema must be described as Form 8835 Credit Amount the “write-in” explanation should say - : “American Samoa Economic Development Credit amount included of $XX” where XX is the amount of the credit. Form 1120 – U. S. Corporation Income Tax Return - Sch J, Line 5b Form 8835 – Renewable Electricity, Refined Coal, and Indian Coal Production Credit –Part II, Line 36c Form 8844 - Empowerment Zone Employment Credit - Part II, Line 16c Form 8860 - Qualified Zone Academy Bond Credit - Part II, Line 7c

Corrected in TY2007v2.3 schema.

8594

Form 8594, Line 7 schema

Form 8594 instructions state to enter the tax year(s) and form number with which the original and any supplemental statements were filed. Line 7 does not support multiple tax years. Missing statement to explain Controlled Group Members Computation

If multiple tax years are needed to be included on Line 7, use the description "Form 8594 Line 7 Workaround" in the General Dependency.

Will be corrected in future schema posting. Continue to use workaround.

8820

Use the General Dependency and describe it "Form 8820 Line 2 Controlled Group Member Workaround".

Will be corrected in future schema release. Continue to use workaround.

8820

Missing Control Group Members Credit Statement

Use the General Dependency and describe it "Form 8820 Line 2 Controlled Group Member Workaround" .

Will be corrected in future schema release. Continue to use workaround.

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Form Type

Schema/Schema Element

Work-Around

Status

8865

Itemized Ordinary Income Loss Statement Schedule B, Line 4: Schedule B, Line 7: Schedule B, Line 20: Schedule K, Line 11:

The dependency Itemized Ordinary Income Loss Statement is If the filer doesn't have an EIN, they should omit the EIN element until the schema change has missing necessary efiletypes (APPLIED FOR" or been made. "FOREIGNUS").

This dependency will be updated with the necessary efiletypes.

8886

Form 8886, Line 7b, DescribeExpectedBenefits, ShortExplanationType

Large Taxpayers require additional space for the Expected Benefits Description. The ShortExplanationType only allows 1000 characters. The efile type will stay the same; however we will attach a dependency at this line for additional explanation.

If additional space is needed at line 7b, form 8886, please use the General Dependency and use "Form 8886 Expected Benefits Workaround" as the Description.

A dependency will be created for this line and published in a future schema posting for TY2008. Change submitted. Will be in future TY2008 schema release. Continue to use workaround.

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