Iowa S Corp eFile Exception

[antonsc63]

After purchasing the Iowa S Corp download I get a message that I am required to efile and they don't support efile so I must contact them (TurboTax) to get a refund. However, the Iowa Dept of Rev allows an exception to print instead of efile "if your software provider doesn't support efile". So I applied for the exception but the software doesn't let me go through the step by step instructions since it still says I must efile. Shouldn't it ask me if I filed for the exception so I can print instead?

[AliciaP1]

TurboTax Business does not charge to e-file, it charges to obtain access to complete the business returns applicable to the state you have income for.  You should click on the State Taxes tab and proceed through the interview questions for your Iowa S-Corp return.  When you have reviewed everything and are ready to file, you can mark e-file and take care of your federal return.  TurboTax will note that you cannot e-file your Iowa Return and you can print and mail it in.

[antonsc63]

I don't even get the option to go through the step-by-step instructions, it immediately takes me to this screen once I click on Continue after the intro screen for the State. And then the only option I get is "Back" which takes me back to the intro screen. It doesn't give me any options to go through the interview questions because it thinks I'm required to only efile for Iowa and tells me that TurboTax doesn't support efile for Iowa.

[AliciaP1]

If you do not want to utilize the federal online filing system for business tax returns as suggested in the IA 1120S instructions, you will have to download the forms from the IA website and mail them in.

Per IA 1120S instructions for 2022:

For tax years ending on or after December 31, 2022, an S corporation must file its annual return with the Department electronically using the federal modernized e-file system (MeF) if it meets any one of the following conditions for the tax year: 

• The S corporation has $250,000 or more in total gross receipts. 

• The S corporation is required to provide 10 or more IA 1120S Schedules K-1 to shareholders. 

• The S corporation is reporting $25,000 or more in Iowa tax credits on Schedule B of its Iowa S corporation return. 

All S corporations are encouraged to file electronically. If an S corporation return is subject to the electronic filing requirement, but it is filed in another manner, it is not considered a valid return unless the Department provides an exception to the electronic filing requirement. 

Mail paper returns to: Corporation Tax Return Processing Iowa Department of Revenue PO Box 10468 Hoover State Office Building Des Moines Iowa 50306-0468

@antonsc63 

[antonsc63]

Thank you for the response but I think the whole point of my issue is being missed here. The TurboTax Business desktop software is not letting me get to the step-by-step interview questions so that I can complete the Iowa return to print and mail; however, I will use TurboTax to efile the Federal return. So, the point is that I "do" want to utilize the federal online filing system, but TurboTax says it does not support the associated/required Iowa efile along with the federal efile and just kicks me out of the step-by-step process to finish the Iowa return (to be printed).

As I work around, I went ahead and efiled the Federal return. It looks like I can manually figure out how to prep the Iowa forms without the support of the step-by-step instructions. However, clearly something is not working correctly here. I hope TurboTax provides the required efile support next year otherwise it's time to find a new software provider.

[drsmithesq]

Right on about finding other software next year!.  I went all the way through to prepare my IA 1120S return.  When done TT told me I was required to e-file but gave me NO support.  When I got to the end TT told me to file by mail.  If I did that Iowa would not consider it a properly filed return and I would be subject to penalties.  I called TT because Intuit has 3 programs that allow you to e-file an IA return, but they cost more than $550.00 and it would not allow me to use one of them for a single return.   When I called Iowa DR, they confirmed that I was required to e-file unless I had an exception.  They directed me to the exception form but had conflicting answers as to whether the exception would be forthcoming if my reason is that my software does not support e-file and I don't have a reason to purchase a $550 program to get it done.

TT did not give me any indication that it had the form for the exception,  apparently not, or how to file for an exception.  I had to get that from the IDR (It takes 90 days to get a reply to the exception request).  Not only have I wasted the $50 for the state return, I have wasted probably 5-10 hours trying to track down a solution (which I have not done unless I am granted an exception).  I had to rummage through the TT tax program to find a telephone number I could call to discover that TT did not support its program.   TT owes me more than a refund.  

Additionally, TT only allow for filing a composite return (IA PTE).  It doesn't tell you that IA has a NR Shareholder/Member Agreement that the NR Shareholder can sign and allow the Corp to avoid the composite tax.  To do this one must override the IA PTE entries and enter a 0 then complete and return getting the agreement from each NR Shareholder.  The agreement form is available on the IDR website.

I HAVE NEVER BEEN SO LET DOWN BY TT IN THE MANY YEARS I HAVE USED THE PRODUCT!!!