In 2020 TaxSlayer Pro Desktop, there is a diagnostic error in the program preventing certain returns from being e-filed, specifically returns whose only source of income is Unemployment Compensation excluded from income so that the return ends up being blank. In order for the return to be accepted, the IRS has issued the following guidance that preparers should follow before transmitting these returns.
Open the return in TaxSlayer Pro Desktop, then take the following two steps:
1. Add a $1 Capital Gain entry on Schedule D. From the Main Menu of the tax return (Form 1040) select:
- Capital Gain/Loss (Schedule D)
- Additional Capital Gains Distributions - Enter $1.
2. Add a -$1 Other Income entry on Schedule 1 with the description BR1. From the Main Menu of the tax return (Form 1040) select:
- Other Income (W-2G, 2555)
- Other Income
- Description of Other Income: Enter BR1
- Amount of Other Income: Enter -1
- Is this EARNED income <Y/N>?: Leave at N
For a list of returns that may contain this diagnostic error, we recommend running a Production Detail Report. From the Quick Menu of TaxSlayer Pro select:
- Additional Reports Menu
- Production Detail Report
Once the report is saved, sort the report by the AGI column. Returns with $0 AGI may contain the diagnostic error.
Note: This workaround was created by the IRS, not by TaxSlayer Pro.