Getting msg saying "we are updating how sep and simple plan contributions are reported on the tax return based on new guidance from the irs check back later" help plz?

Forum|Forum|2 years ago
January 23, 2024
49 replies
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Turbo tax won't let me file until this is fixed

TurboTax Deluxe Online

Best answer by CatinaT1

I agree, it is very frustrating.

TurboTax programmers are currently implementing some recent IRS changes for reporting SEP and SIMPLE plan contributions. While there isn't an estimated date when the changes will be done, you can test this by editing your W-2 every 5-7 days to check on the status.

On January 8, 2024, the IRS released a notice describing many changes required to implement the Secure Act 2.0. If you try to enter Code S for Box 12 of your W-2, you may see this message: "We're updating how SEP and simple plan contributions are reported on the tax return based on new guidance from the IRS."

Section 601 of the Secure Act 2.0 refers specifically to Simple and SEP Roth IRAs. Code S in box 12 defines how to handle a SIMPLE plan.

These last-minute IRS (and law) changes often cause implementation delays for TurboTax and other tax processors.

Please be patient while TurboTax works to understand all the ramifications of this IRS Notice then code and test the changes. Note that the IRS is not open for e-filing until January 29th.

danfreda5

I'm having the same issue currently. Does anyone have a solution?

ee-ea

Employee

A TurboTax employee posted this:

. On January 8, 2024 (i.e., just two weeks ago) the IRS released a notice describing many changes required to implement the Secure Act 2.0 - I believe that this is what "We're updating how SEP and simple plan contributions are reported on the tax return based on new guidance from the IRS." is referring to.

Indeed, Section 601 of the Secure Act 2.0 refers specifically to Simple and SEP Roth IRAs. Code S in box 12 refers to how to handle a SIMPLE plan.

These last minute IRS (and law) changes inescapably cause delays on the part of TurboTax and other tax processors.

It will take time for TurboTax to understand all the ramifications of this IRS Notice and then code and test the changes. The IRS is not open for filing until January 29th so you have some time to wait.

Arilii

I'm having the same issue , any update?

ndavidson94

I actually just spoke to one of the "tax experts" about this. They are currently anticipating everything being ready on their end the first week in February for those with SEP or Simply Roth IRA's. I believe another commenter already disclosed the reason for the notification, I just want to provide the given timeline I received. Additionally, it would be best to wait as there is current legislation in Congress that would increase CTC for 2023. So, in all, this delay could be beneficial.

tipsy2173

same thing any ideas how to file or fix?

Dsobgirl

Any update on when this will be fixed?

VolvoGirl

Employee

No. If you paid the Turbo Tax fees at least you locked in the lower price.

Dsobgirl

I normally have them take it from my refund!

tic32003

According to the IRS website (https://www.irs.gov/retirement-plans/common-errors-on-form-w-2-codes-for-retirement-plans) your employer used the wrong code for Box 12. IRS says Simple Plans should use Code D, not Code S.

If you change the code in TurboTax, it will go through (print out the above page from the IRS website to keep with your tax records in case of audit).

Common mistakes

During Form 5500 examinations, IRS agents found employers using incorrect codes in Box 12 of Form W-2, for example:

code D for 401(k) elective deferrals incorrectly included 403(b), 457, or non-qualified amounts.
code E for 403(b) contributions but did not have a 403(b) plan.
code H to incorrectly report health benefits; code H is for elective deferrals to a 501(c)(18)(D) tax-exempt organization plan. (In fact, a recent Employee Plan Compliance Unit project found that only 6 % of employers who used this code actually contributed to a 501(c)(18) plan.)
code S for a SIMPLE 401(k); the correct code for a SIMPLE 401(k) is code D.

Dsobgirl

Did they just update that?

angie5235

I got the same message. Ended up going to a different online tax preparation company to file my return with no issues. My return has been filed with the other company. After years of only using Turbo Tax I won't be back. This is so frustrating that a company this large has not been able to fix the reporting issue.

Dsobgirl

Who did you end up using? I've been using TurboTax for a while now too. 😞

Whysper76

I got the same message, very frustrating

LMac757

Has there been any update to the timeline on this? I see the advice telling us to change it to code D… but that seems like it is just begging for an audit and I’m 99% sure S was, indeed, the correct code for my employer anyway.