How to Fix Rejected State Return?: Oregon Federal Tax Liability Hold - Oregon Form 40, 40N and 40P Federal tax liability subtraction requires a software update.

[Nihonjin808]

The same happened to me. Got the "Errors fixed and ready to file" message. All I can do at this point is wait. I called a person at the Oregon Dept of Revenue who told me that Intuit had informed them just today, February 17, that the fix was made after Oregon had requested Intuit to do so. 

Strange thing happened to me though. I had arranged to get both text message and email updates. The time stamp on my resend was 11:11 AM today. I received a text message this afternoon that was time stamped 11:03 AM that my return was rejected, Turbo Tax shows that my state return is still pending. 

I joked with the Dept of Revenue person that for the first time in my life I was faster than a computer. What a cluster !!!

[Mdrmnd]

I downloaded the 2020 publication OR - 17 and found the information (for calculating line 10 on the Oregon 40) on page 65 and 66. I’m wondering what publication it was that you downloaded?

[Mdrmnd]

Did all that; e-mail says Oregon needs an update but Turbo Tax says I'm up to date.

[Mdrmnd]

Hope that works for you, please keep us posted. I saw that button too, but thought you pressed that after you fix your errors. Since the error is a software update need, and Turbo Tax says my software is up to date, I'm not sure what to do. I'm not pressing that button yet because I don't want another free e-file that is wrong still. Then later have to pay.

[Nihonjin808]

I am  not sure about this, and I  am not an attorney, but it seems to me that under the circumstances with the software "fix" and the timing, it would be unconscionable to charge you for attempting to resend. Most judges could understand why a person, any person, would just want to get tax issues out of their mind and hit the resend button over and over, again and again.  

[Nihonjin808]

I woke up this AM and received a message that my Oregon return had been accepted. This is what I have concluded:

1. Yesterday, Feb 17, I got a message when first opening up TurboTax that it was "Up to Date". I was confused because of my understanding that a software fix was needed, but I plowed ahead anyway (Banzai WTH) to correct the "Oregon Federal Tax Liability Hold". I finally got a message that stated, "Errors fixed and ready to file". I was shocked because the previous message "Up to Date" would imply that I had not needed to download the software fix. Apparently the fix happened in the background on the TurboTax servers, but the messaging somehow had not caught up with the fix.

2. Today, Feb 18, I opened up TurboTax just to see what would happen, and I was informed that a download was needed, so I did it anyway. Apparently the correct messaging has "caught up" with the software fix.

3.  I am not a high tech expert, but my layman's intuition tells me that a lot of technical "reconciliation" has to happen on the servers so that the messages become consistent with the true status of everyone's install of TurboTax. From what I can tell today, all should be good for everyone else. 

I posted on Facebook yesterday  to caution my Oregon friends to wait a couple of days before they e-filed their returns. I believe that time was needed for everything to get sorted out on the servers since my call to OR Dept of Revenue (DOR) revealed that Intuit informed OR DOR yesterday that the software fix had been installed.

Good luck, everyone! 

[cmdr_taco]

Yes I resubmitted last night as well (turbotax for the web -- i.e. web browser turbo tax), and it was accepted this morning.   Umm...OK.

[Mdrmnd]

Following is the response I received from OR Dept. of Revenue. I think we're good to re-e-file now. I just did, so we'll see. 🙂

"Good morning,
The update is not an update from our agency. We were advised by Turbo Tax that the update to make corrections to how they were calculating a specific subtraction on the Oregon return should now be available for you to re-transmit the Oregon return.
We do not have specific steps on how to re-transmit your return via Turbo Tax, please reach out to their customer service line for guidance on their tax software. We can confirm that once the update is completed, your Oregon return should be transmitted successfully.
Thank you"

[erikB]

First off, I used downloaded software and I paid $20 to do the State online.  I am going to cancel my payment, the service was not provided.... I filed 3 weeks ago, got the rejection info from Turbotax with no indication on how to fix it, but to update.  I updated at least 3 times, no change.  No indication on how to fix it.  This is just very poor performance.  Turbotax knows who all got this rejection and they could reach out to us, paying customers and tell us how to fix it.

[CarissaM]

I you need a refund on the product, please click here to contact customer support. 

[mmeguilfoyle]

I have the same issue with the downloaded version of the software.  Line 10 on the OR-40 is under-reporting, even after updating my software.  

[PNWtrees]

read through this thread from last year, appears to be happening again this year. 

[no0kafish]

Got the same rejection reason. Looks like it's happening again? It said to come back on or after February 17th to update. It's weird the error would be on the same date to update as last year. 

[PNWtrees]

I noticed that too. Same date, really odd...

Hoping this gets some views so we can have some answers

[RobertB4444]

I know it's weird but the February 17 date thing is an honest to god coincidence.

The IRS started this tax season pretty far behind.  That kind of delay flows down to the states.  So the IRS finalizes their forms and then the states finalize their forms.  And then the TurboTax programmers get the forms and have to integrate them into the TurboTax program.  Then there is testing to make sure that the newly added forms work with the program properly.  Then they are rolled out to the public.  As inconvenient as the waiting is it will still get your tax return processed faster than paper filing it.

Here is the timeline for the release of state forms on TurboTax.