E-File Alert Feb 14 to Feb 18

I've briefed all clients whose returns are going to be transmitted this coming week that nobody really knows what's going to happen. I've told them all to keep their fingers crossed. But I think once we look back on this, it will have been a mini-equivalent of the Y2K flop-fiasco of 11 years ago. A real snore.

I would imaging the IRS is Now admitting that it will be like a Fireworks display between the 14 and 18 and they are going to limit the capacity now. You can go to alerts in the Home Base and it is there regarding potential limits between the 14 and 18 of Feb

Late on Friday evening, Intuit learned from the IRS that the Service is limiting the number of returns it accepts daily from all e-file transmitters during February 14-18. They are implementing the flow control in order to manage their systems capacity and ensure successful filings of all returns, including those that were affected by the “Schedule A delays.” As a result, Intuit has a maximum number of returns we can remit to the IRS each day. Therefore, tax professionals who submit returns to Intuit early in the week may not receive acknowledgements from the IRS until later in the week.

We are working closely with the IRS to process all tax returns as quickly as their systems will allow, but we suggest that tax professionals stagger the number of returns they submit over the course of the week, rather than submit all returns on the first day or two of processing.

As a result of the IRS staged transmissions over the course of the week of Feb. 14-18, some customers may experience delays in return processing and in the time it takes to receive their refunds. However, we expect that all processing should be back into the standard processing flow by Friday, Feb. 18, and, based on our projections, we believe that the vast majority of Intuit’s professionally prepared returns will be accepted normally throughout the week.

Helping the IRS manage its systems capacity in the first week of e-filed submissions – in this unusual year of forms delays – is in the interest of achieving a successful season for our tax professionals and their clients. Although we understand getting your clients’ refunds quickly is important, we also know that the IRS is processing returns as rapidly as possible.

We have provided you with as much information as we currently know from the IRS on the Intuit ProLine News Central blog and in our support web pages. We will keep you informed as we learn more from the IRS.

General Q&A:
1. Are you submitting held returns on a first in-first out basis?

Yes, we will process returns on a first-in, first-out basis. However, we are encouraging tax professionals to “stage” submission of their returns over the course of the week to have the best turn-around time in submission and acknowledgements.

2. Should tax professionals hold returns and submit them in a staged manner?

We suggest that tax professionals “stage” submission of their returns over the course of the week to have the best turn-around time in submission and acknowledgements.

Helping the IRS manage its systems capacity in the first week of e-filed submissions – in this unusual year of forms delays – is in the interest of achieving a successful season for our tax professionals and their clients. Although we understand getting your clients’ refunds quickly is important, we also know that the IRS is processing returns as rapidly as possible.

3. Is it possible that returns submitted during the period of Feb. 14-17 will not make the 11:00 a.m. (Eastern Time) IRS drain?

Yes, it’s possible, but not likely. The IRS is limiting the number of returns it accepts daily, to manage their systems capacity and ensure successful filings of all returns. They are managing the workflow to maximize the number of returns accepted by balancing the load on their systems.

We are working closely with the IRS to process all tax returns as quickly as their systems will allow. We expect that all processing should be back into the standard processing flow by Friday, Feb. 18, and, based on our projections, we believe that the vast majority of Intuit’s professionally prepared returns will be accepted normally throughout the week.

4. Are you prioritizing TurboTax returns over Intuit professional returns?

No. It’s our job to ensure that all our customers’ returns are e-filed, accurately and in a timely fashion. Therefore, we’re balancing consumer and professionally prepared returns according to the normal levels of each type of return we receive at peak periods during the season.

5. How long will it take to get acknowledgements from the IRS?

Because of the managed staging of returns by the IRS, acknowledgements could be delayed by 48-96 hours. However, it’s likely that most professionals will receive acknowledgements in 12-48 hours during the first week of processing delayed returns (Feb. 14-18), particularly if they submit their stockpiled returns evenly over the course of this week.

6. How long will it take for my clients to get their refunds?

Once your client’s return is accepted, the federal tax refund will be processed based on the IRS payment timetable.

The U.S. Treasury sends refunds in batches every Friday. All the returns that are accepted by 11:00 a.m. ET on Thursday are paid via direct deposit the following Friday. If you e-filed your client’s return, but they had elected to get their refund by check, it will be mailed the subsequent Friday and delivered by the U.S. Postal Service.

For example, if your client’s return is accepted by the IRS by 11:00 a.m. Eastern Time on Thursday, March 3, the client would be paid via direct deposit on the following Friday, March 11. If the client had chosen to get the refund by check, it would be mailed on Friday, March 18. The client would receive the check based on the U.S. Postal Service delivery timing.

7. I submitted returns to Intuit on the evening of Feb. 13, but did not receive an acknowledgement. What has happened to those returns?

Beginning at 9:00 p.m. Pacific Time, on Sunday evening, Feb. 13, Intuit temporarily stopped backend transmission to the IRS until they are ready to process the “Schedule A delayed” returns.

All returns filed during this period will remain in the “Received by Intuit’ status until the IRS notifies us that they are ready for transmissions (estimated to be after the 11:00 a.m. EST drain on Feb. 14).

Returns will be batched as they come in so that when transmission begins, we will begin transmitting returns to the IRS on a first-in–first-out basis.

8. When I check the status of returns in Lacerte/ProSeries/Intuit ProLine Tax Online, it says “Pending.”

If the return is marked “received,” we are working with the IRS to process these returns as quickly as their systems allow. At the request of the IRS, Intuit is staggering return submissions.
You will receive an e-mail when your return has been accepted by IRS, usually within 24-72 hours after it’s been received. Once your return is accepted, your federal tax refund will be processed based on the IRS payment timetable