"Ten-day rule" for state electronic filing

Alerts and notices

To accommodate a security mandate from most state tax agencies, you will be prevented from transmitting an electronic file that was created in an outdated version of an UltraTax CS state product if more than ten business days have passed since the current version was released. This is most likely to impact customers who create electronic files in batches early in the filing season and then transmit them to the taxing authorities at a later date.

Example

If you created an e-file in UltraTax/1040-MI version 18.3.0 on 2/1/18 and 1040-MI version 18.3.1 was released on 2/2/18, you must transmit that e-file before 2/13/18. After 2/13/18, you would need to install the 18.3.1 update, re-create the electronic file, and then transmit it via CS Connect. 

The Federation of Tax Administrators recommendation for 2018 tax returns adopted by these states mandates that "users of this product who attempt to e-file 10 or more business days after a production release will be required to download and apply the product update." This is also known as the 10 day business rule.

CS Connect behavior

CS Connect will automatically reject any transmitted electronic files if ten business days have passed since a newer software update was released. This rejection indicates that you must install the latest version of the applicable state software, re-create the electronic file, and transmit the e-file to Thomson Reuters. 

Identifying and resolving "stale" e-files

Before transmitting state electronic files, review the Electronic Filing tab in the Utilities > CS Connect dialog. This tab displays the word "STALE" in red text alongside any state e-files that were created in an outdated version of the software. You can also create electronic filing status reports via the Utilities > Client Listing Reports dialog if you prefer a printable list. 

To fix e-files listed as "STALE" in the Utilities > CS Connect dialog, complete these steps. 

  1. Install the latest version of the applicable state application (such as UltraTax/1040-MI).
  2. Suppress the federal and any additional state returns to ensure only the stale e-file is created.
  3. Re-create the electronic files for the affected returns.
  4. Transmit the new e-file to Thomson Reuters via CS Connect. 

Recommendations

We recommend the following: 

Internal notes


CS Connect will still: 
  • Transmit electronic files to the state agency that have been created on the latest version of the applicable UltraTax CS software.
  • Transmit electronic files to the state agency within 10 business days from the release of the applicable UltraTax CS state product update.

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