WARNING: Iowa 1040, ATX wrong tax calc all returns

[Byron]

ATX has been calculating the tax wrong on all IA 1040's until this morning. I noticed a return that I printed and had signed yesterday changed this morning after I did an update. The Form Update Report shows that the IA 1040 changed to "Ver 10 - Calc of p2 line 43 corrected for filing status 2 (MFJ)." But a quick check shows my previous returns ALL changed, including Status 3 (MFS). The bottom line seems to be only a few dollars, but look how far off they were getting there:

L 42 Filer, Taxable Income 33,921, tax 1,724 - correct tax 1,791

L 42 Spouse, Taxable Income 42,971, Tax 2,503 - correct tax 2,436

Total is the same, but after the school surtax the bottom line refund went down $1.

Another return with more income difference in the spouses' incomes showed a change of $8.

Check all of your Iowa returns after updating today and you'll see the corrected #'s show large changes, but the bottom line changes are relative small. Taxpayers probably won't notice the different refund, but they'll all get notices from the Department of Revenue that their taxes were computed incorrectly. Speaking of which one client called the other day to tell me they already got such a letter; I haven't seen it yet as they're mailing it to me - now I know why they got it! Their refund went down $52.

[L.S.]

Thanks for the heads up, Byron. UGH........................

[NECPA in NEBRASKA]

Thanks, Byron. It only affected two of mine and they hadn't left the office yet.

[Byron]

I got a copy of the IA Dept of Rev letter -- two pages including a recalculation of the tax.

Clients are confused, worried about being marked for audit for years to come -- all the usual fear and loathing of the whole tax process.

The phone calls are coming -- time for hand holding and soothing.

I don't have time for this crap!

Thanks a lot, ATX, for screwing up a tax calculation that hasn't changed for years.