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RAL Season Ends Today 04/22/08 1:01 PM EST
The last day to submit a Refund Anticipation Loan (RAL) application to SBBT is today, Tuesday, April 22. Beginning Wednesday, April 23, RAL applications will be denied with the following notice: “Loan application denied. Application received after product cutoff date. Please contact SBBT if you have any questions.”
Economic Stimulus Payment Schedule 04/21/08 9:04 PM EST
For tax returns that were filed by April 15, 2008, the Economic Stimulus Payments will be issued based on the last two-digits of the taxpayer’s Social Security number. Taxpayers who used direct deposit for their 2007 income tax refund will be among the first to receive the payments starting May 2, 2008. Paper checks will be mailed starting May 16, 2008.
The following chart applies to taxpayers who will receive a direct deposit:
Last two SSN digits: Payment will be transmitted:
00 through 20 May 2
21 through 75 May 9
76 through 99 May 16
The following chart applies to taxpayers who will receive a paper check:
Last two SSN digits: Payments will be mailed by:
00 through 09 May 16
10 through 18 May 23
19 through 25 May 30
26 through 38 June 6
39 through 51 June 13
52 through 63 June 20
64 through 75 June 27
76 through 87 July 4
88 through 99 July 11
Taxpayers who file their return after April 15, 2008 will receive their stimulus payment about two weeks later than the schedule above. A return must be filed by October 15, 2008 in order to receive a stimulus payment this year. Taxpayers who do not receive a stimulus payment this year may still be entitled to a refundable credit on their 2008 tax return.
Deceased Taxpayers. Stimulus payments will be issued in the name of the individual eligible for payment on a filed 2007 income tax return or to the account designated by the individual on that return. This includes situations where a person dies after filing a return or where the final 2007 income tax return was filed by a personal representative or surviving spouse.
Rental income. Rental income is not earned income for purposes of the Economic Stimulus Payment, unless it is net earnings from self-employment, such as certain farm rent reported on Schedule F or income reported on schedule C as a real estate dealer.
Filing Season 2008 - Start and End Dates
Start Date End Date Details
Electronic Filing:
Early Efile 1/7/08 1/11/08 Subject to the IRS Service Centers opening early. We'll notify you here.
Electronic Filing
Form 1040		 1/11/08 4/15/08
-
10/15/08		 Last date for transmitting timely filed returns is 4/15/08. Last date for retransmitting rejected timely filed returns is 4/20/08. Last date for transmitting returns on extension (Form 4868) is 10/15/08. Last date for retransmitting rejected returns on extension (Form 4868) is 10/20/08. 
Electronic Filing
Form 4868		 1/11/08 4/15/08 Last date for retransmitting rejected timely filed Forms 4868 is 4/20/08.
Electronic Filing
Form 1040
Overseas Exception		 1/11/08 6/5/08 Last date for retransmitting rejected timely filed Forms 4868 or 2350 subject to the Overseas Exception is 06/20/08.
Moving?, Closing your office?, Turning off your computer?     You MUST notify the IRS of your new contact information. If you don't and they attempt to contact you and cannot your EFIN will be suspended. Be sure to notify us too. You MUST ALSO NOTIFY SBBT ON THE LAST DAY YOU ARE PRINTING CHECKS. Please contact SBBT only on that day; it is important that SBBT does not continue to send check print authorizations to your site.
SBBT:
RAL Advances 1/11/08 3/31/08 RAL Advances may be transmitted with a RAL request beginning 1/11/08.
RALs 1/11/08 4/22/08 RAL requests must be IRS accepted and received at SBBT by 4/22/08. Any requests received on 4/23/08 and thereafter will be automatically converted to a Refund Transfer (RT).
RTs 1/11/08 10/31/08 RTs are available through 10/31/08. 
Cash Cards 1/11/08 5/6/08 After 5/6/08, requests for cash card disbursements will switch to printed checks. NOTE: Cash Cards will expire on 5/31/08. The account will close and any balances left on the card (over $14.95) will generate a cashier’s check. Checks will be mailed to taxpayers via first class mail.
Site Printed Checks 1/11/08 10/16/08 After 10/16/08, SBBT will print and mail checks directly to taxpayers via first class mail. 
ACH Direct Deposits 1/11/08 12/31/08 After 12/31/08, SBBT will print and mail checks directly to taxpayers via first class mail for any prior year accounts regardless of original disbursement method.
Instant Loans Ending  03/24/08 9:36 PM EST
As previously announced, (See Filing Season 2008 - Start and End Dates below), SBBT will continue processing Instant Loan applications until 11:59 PM Eastern Time on Monday, March 31. Beginning Tuesday, April 1, SBBT Instant Loan applications will be rejected with the following notice: “Instant Loan is denied. Application received after product cutoff date. Please contact Santa Barbara Bank if you have any questions.” This cutoff applies only to Instant Loans. You may continue offering RALs and PERCs 
to your clients.
Nontaxable Combat Pay Qualifies for Stimulus Rebate 03/24/08 9:25 PM EST
Nontaxable combat pay is qualifying income for purposes of the rebates under the Economic Stimulus Act of 2008. Military personnel who would normally not file a return because their income is nontaxable should file a simple Form 1040A in order to receive the economic stimulus payment in 2008. The Department of Defense lists the amount of excluded combat pay with the designation "Code Q" in box 12 of Forms W-2, Wage and Tax Statement, received by military personnel. They should report their nontaxable combat pay on Line 40b of the Form 1040A to show at least $3,000 in qualifying income. Package 1040A-3 provides all the necessary forms and instructions.
Unclaimed Refunds Await 1.3 Million Taxpayers for 2004 03/24/08 9:21 PM EST
The IRS has unclaimed refunds totaling $1.2 billion awaiting 1.3 million people who failed to file a 2004 income tax return. In order to collect the refunds, returns must be filed with the IRS no later than April 15, 2008. In cases involving nonfilers, most taxpayers have a three-year window of opportunity for claiming a refund. However, taxpayers seeking a 2004 refund will have their refunds held if they have not filed returns for 2005 or 2006. If no return is filed by the deadline, the funds become the property of the U.S. Treasury. No penalties are assessed for filing late returns that qualify for refunds.
Economic Stimulus Payments Delivery Schedule 03/18/08 11:04 AM EST
The IRS will begin sending more than 130 million taxpayers economic stimulus payments starting May 2nd, and continuing through July 11th. The payment date depends upon the last two numbers of the taxpayer's SSN - or the first SSN listed on joint returns. For a small percentage of returns, stimulus payments may not be issued in accordance with the IRS's schedule. Taxpayers who file their returns after April 15th can expect to receive their economic stimulus payment about two weeks after receiving their tax refund. Just as with tax refunds, an economic stimulus payment may be applied to back taxes and certain other debts of the taxpayer, such as delinquent child support and student loans. In such cases, the IRS will send a letter to the taxpayer explaining the offset. Click here to determine the estimated amount of the economic stimulus payment: http://www.irs.gov/app/espc/
IRS Releases 2007 Data Book 03/15/07 2:56 PM EST
The IRS has released the 2007 IRS Data Book, an annual snapshot of IRS activities for the last fiscal year. The 2007 IRS Data Book includes information about returns filed, tax collections, enforcement, taxpayer assistance, and the IRS budget. Last fiscal year the IRS:
  • spent an average of 40 cents to collect each $100 of tax revenue
  • examined nearly 1.4 million individual income tax returns
  • answered more than 33.2 million toll-free calls from taxpayers
  • received 215 million visitors at it's web site
IRS CADE Processing System Tops 15 Million Tax Returns  03/15/08 2:48 PM EST
15.1 million individual tax returns have been processed this season by the IRS’s modernized account information computer system, the Customer Account Data Engine (CADE). CADE is handling significantly more tax returns each year. It dramatically speeds up IRS processing, permitting taxpayer accounts to update on a daily basis instead of the weekly basis the Master File System uses. Another big benefit of CADE - there's very few people still alive that know how the 50 year old Master File System actually works!
Reminder to Keep Forms 8879 For Your Files 03/15/08 2:35 PM EST
Form 8879 IRS e-file Signature Authorization and Form 8878 IRS e-file Signature Authorization for Form 4868 or Form 2350 are to be retained for your records and should not be sent to the IRS. You may electronically image and store these forms using the guidelines in Revenue Procedure 97-22, Retention of Books and Records. The Andover and Austin Processing Campuses receive thousands of these forms each year, and as a result, they must return them to the ERO. The process of returning these forms to the EROs reduces the time the IRS e-help desk has to devote to your inquiries. Please help the IRS by keeping these forms in your office files. For further information about what records to keep and how long to keep them select Record Keeping Requirements from the drop down menu above.
Preparing Economic Stimulus Returns for SS and VA Benefits Recipients 03/12/08 11:50 AM EST
To prepare an efileable tax return for Social Security and VA benefits Recipients do the following:
  • Go to the Personal Information Worksheet
  • At the top in the Disaster Designation box type the word STIMULUS
  • Go to Form 1040 Line 8a and enter 1 dollar
  • Do not complete the worksheets that correspond to Line 8a. They are not needed
  • Efile the return
IRS Funding 03/12/08 11:45 PM EST
SBBT has received the weekly IRS funding today and expects to release PERC check print authorizations starting at approximately 3 PM EST. Taxpayers whose tax returns were IRS accepted before Noon on Thursday, March 6 are likely to have their refunds paid this week.
IRS Sends Rebate Packages to Social Security and VA Beneficiaries 03/11/08 1:36 PM EST
Recipients of Social Security and VA benefits will soon receive information packages about the economic stimulus payments. The information package is designed for people who may qualify for an economic stimulus payment, but who may not otherwise have to file a tax return. Individuals with at least $3,000 of qualifying income may receive a minimum economic stimulus payment of up to $300 ($600 for married couples filing jointly) and a $300 per child payment for qualifying children under age 17. Package 1040A-3 will contain everything the recipients will need to file a 2007 tax return, including an information notice, tips for completing the required Form 1040A, a sample Form 1040A and an actual Form 1040A for the filer to complete.
Is The Tax Season Over? 03/06/09 2:14 PM EST
Not by a long shot! Consider the facts... In 2007 140,188,000 tax returns were filed. 79,979,000 were efiled. 57,420,000 were efiled by tax professionals.

According to the IRS's Filing Season Statistics as of March 1, 2008 only 55,704,000 tax returns have been filed. 43,777,000 were efiled. And 29,738,000 were efiled by tax professionals. Add to that the fact that between 20,000,000 and 30,000,000 non-filers need to file a tax return in order to get their Economic Stimulus payment in 2008, and it appears that the tax season isn't even half way over!
IRS Funding 03/05/08 12:15 PM EST
SBBT has received the weekly IRS funding today and expects to release PERC check print authorizations starting at approximately 3 PM EST. Taxpayers whose tax returns were IRS accepted before Noon on Thursday, February 28 are likely to have their refunds paid this week.
Taxpayers to Receive Economic Stimulus Letters Starting This Week 03/02/08 9:04 PM EST
Over 130 million households will begin receiving letters from the IRS this week reminding them to file a 2007 tax return in order to receive an economic stimulus payment. The mailings, which will take place in three weekly batches, will continue throughout the month. The letter alerts people that they may be eligible for a one-time stimulus payment of up to $600 ($1,200 MFJ) starting in May. There also is a $300 per child payment for qualifying children under age 17.
Confused About Form 8453? It's Alive and Well! 02/27/08 3:21 PM EST
There was a lot of talk earlier this year about Form 8453 having been eliminated. However, it was never actually eliminated. It’s use just became limited because PINs are now used. The IRS designed an all new Form 8453 to be used in those limited circumstances when it needs to be mailed in with any of thirteen (13) attachments. The attachments are listed on Page 1 of Form 8453. Please review the new Form 8453 by clicking here: http://www.irs.gov/pub/irs-pdf/f8453.pdf The mailing address is on Page 2.
IRS Funding 02/27/08 11:58 AM EST
SBBT has received the weekly IRS funding today and expects to release PERC check print authorizations starting at approximately 3 PM EST. Taxpayers whose tax returns were IRS accepted before Noon on Thursday, February 21 are likely to have their refunds paid this week.
Alabama State Returns 02/26/08 8:46 PM EST
Alabama has informed us it is experiencing issues retrieving returns from the IRS, and all software companies are impacted. Alabama notified us it expects to resolve this issue by Tuesday, March 4. As a result, acknowledgments for Alabama State returns are temporarily delayed.
SBBT Customer Service Hours 02/26/08 8:41 PM EST
As the peak of tax season is over and call volume has subsided, SBBT's live customer support hours will change, effective Saturday, March 1, 2008, for the remainder of the tax season. The new hours are: 
7:00 AM to 5:00 PM (PST) Monday through Friday 
7:00 AM to 12:00 Noon (PST) Saturday 

Please note that you can call (800) 455-7228 for check verification, approval status of RAL requests, and to check on IRS funding, 24 hours a day, 7 days a week for the rest of the year.
Who WON'T get a rebate check? 02/24/08 4:37 PM EST
Unlucky kids and their parents. A qualifying child for additional $300 per child rebate purposes is one who is younger than 17. Taxpayers who claim an older college student as a dependent won't get the additional $300 per child. 

Unlucky College kids. The law makes dependents (and those who could be claimed as a dependent) ineligible. Students who can be claimed as dependents by their parents won't get a rebate check even if they had jobs that otherwise would have qualified them for the rebate check. What a rip-off!

Wealthy Taxpayers. The rebate will begin to phase out for single taxpayers with an AGI of more than $75,000; $150,000 for married couples filing jointly. The rebate is reduced by $50 for every $1,000 above the income limit. Thus, the $600 rebate will be eliminated for individuals with an AGI of $87,000; $174,000 for married couples filing jointly. 

Nonresident aliens.

Trusts and estates.
Launch Pad Update 02/23/08 10:10 PM EST
The following new pages are now available here at the Launch Pad by selecting them from the drop down menu above:
Exempt Organizations Reference Chart
Form 1040 Line-by-Line Reference - Neat!
General Business Credits
IRS Forms		 IRS Publications
IRS Publications for Business
Sale of Business Assets
Tax Facts for Business
Economic Stimulus Payments Information 02/22/08 8:51 PM EST
Information Center
http://www.irs.gov/irs/article/0,,id=177937,00.html		 Frequently Asked Questions 
http://www.irs.gov/newsroom/article/0,,id=179181,00.html
Error Reject Codes 0030, 0294, 0302, 0383, and 0720 02/21/08 11:56 AM EST
The IRS has implemented changes to their systems and is now accepting returns associated with the following Error Reject Codes:
0294 and 0383
The IRS will begin accepting returns associated with the following Error Reject Codes AFTER the 2:00 PM EST on Thursday, February 21st: 0030, 0302, and 0720
Details of the $152 Billion Economic Stimulus Bill 02/20/08 7:55 PM EST
Congress recently passed the Economic Stimulus Act of 2008. In addition to the “recovery rebates” for individuals, the new law also includes $44.8 billion in business incentives. 

Starting in May, the U.S. Treasury will begin sending economic stimulus payments to more than 130 million individuals. These stimulus payments will arrive through late spring and summer 2008. Anyone who filed a 2007 tax return will be considered for a stimulus payment. For recipients of Social Security, certain veterans’ benefits and low-income workers who don’t normally need to file a tax return, the IRS released a mock-up version of a Form 1040A highlighting the specific sections of the return that people in these categories can fill out to qualify for a stimulus payment. This mock-up 1040 file may be viewed at:
http://www.irs.gov/pub/newsroom/1040a.pdf

This file indicates that Social Security recipients, for example, would enter their Social Security amount received in box 14a of Form 1040A, then enter zero in box 14b. Within 1040 ValuePak, you can enter “Stimulus Payment” as a description in the “Disaster Designation” field, providing for the proper description to be printed on the top of the 1040A. If taxpayers prefer the stimulus payments delivered via direct deposit to their bank accounts, use the direct deposit bank account fields on the Electronic Filing worksheet (or the Personal Information worksheet if not e-filing). At the present time, however, you may NOT electronically file a return with “Stimulus Payment” or with zero income because the IRS system is not yet updated to accept them. The IRS is presently updating their system to allow e-filing of these returns because the IRS prefers all returns be e-filed. We will provide e-filing for these returns as soon as the IRS accepts them. You will be notified of the IRS target date as soon as they announce it, here at the News Center. Please advise your clients they won’t miss out by waiting until the IRS accepts these returns by e-file. Filing immediately will NOT speed up their stimulus payments.
IRS Funding 02/20/08 7:53 PM EST
SBBT has received the weekly IRS funding this evening and has begun releasing PERC check print authorizations. This week's funding file is large and SBBT anticipates it may take more than 5 hours to release all associated PERC checks. Taxpayers whose tax returns were IRS accepted before Noon on Thursday, February 14 are likely to have their refunds paid this week.
Filing Center Scheduled Maintenance 02/15/08 8:23 PM EST
We plan to perform Filing Center scheduled maintenance Sunday, February 17. We expect the maintenance to begin at 5:30 AM EST and last approximately 2 hours. During this time our Filing Center will be unable to accept transmissions. Thank you for your patience.
Filing 2007 Tax Return Required for Rebate Check 02/14/08 11:31 PM EST
"To get a rebate check under the Economic Stimulus Act an individual must file a 2007 income tax return" stated IRS Acting Commissioner Linda Stiff at a press briefing conducted from IRS headquarters in Washington, DC, immediately following the president's signing of the bill into law. Stiff announced "that the first checks will go out in early May". 

Stiff stated that the determination of eligibility and payment amount for each individual will be made based exclusively on information provided on 2007 income tax returns. Unless a 2007 tax return is filed by an eligible individual, that individual will not be sent a rebate check. Those not required to file a 2007 tax return nevertheless must file if they wish to receive a rebate this year. That group includes those individuals with no taxable income for 2007 but having at least $3,000 in qualifying earned income, social security benefits or veteran's disability payments. There are an estimated 20 to 30 million individuals falling into the category of persons not required to file a 2007 return. Those who do not file a 2007 return by December 31, 2008, will be eligible to claim the rebate credit by filing a 2008 return in 2009, Stiff added. Individuals who have already filed 2007 returns, but did not disclose nontaxable social security or veteran's payments that would qualify them for a rebate, are being advised to file an amended return on Form 1040X to provide the IRS with the information needed for issuing a rebate check in the proper amount.
Thanks A Million! 02/13/08 9:32 PM EST
Thanks to you we reached an important milestone earlier than ever this year – one million tax returns e-filed and accepted as of Monday, February 11th! The first million accepted returns came four days earlier than last year, meaning you’re doing more business and your clients are receiving their refunds faster. Your success is our success. Thanks for helping us reach this million return milestone!
IRS Funding 02/13/08 9:28 PM EST
SBBT has received the weekly IRS funding this evening. SBBT expects to release PERC check print authorizations starting at approximately 10:00 PM EST. This week's funding file is very large and SBBT anticipates it may take more than 12 hours to release all associated PERC checks. Taxpayers whose tax returns were IRS accepted before Noon on Thursday, February 7 are likely to have their refunds paid this week.
SBBT RAL Denials 02/12/08 6:02 PM EST
As a safety precaution, SBBT had in place the denial code 10019 for loan requests that were affected by the AMT issue. As you know, February 11th was the first day that returns containing AMT forms were allowed to be filed. SBBT's denial code was not adjusted on February 11th, causing denials for those returns that should not have been denied. SBBT WILL BE AUTOMATICALLY OVERTURNING RALs THAT WERE DENIED FOR THAT REASON ONLY. Check print authorizations will be issued shortly for those overturned. Any returns with those attributes filed from this point on will not be affected by that denial. SBBT apologizes for the inconvenience.
Service Release 7 is Required 02/08/08 8:24 PM EST
Beginning with the IRS drain on Monday, February 11th at 6:00 PM local IRS Service Center time, the IRS begins accepting the following forms previously delayed as a result of the late AMT changes: 

Form 8863, Education Credit 
Form 5695, Residential Energy Credit 
Form 8396, Mortgage Interest Credit 
Form 8859, District of Columbia First-Time Homebuyer Credit 
Form 1040A-Schedule 2, Child and Dependent Care Expenses 

You may begin transmitting these forms on Monday, February 11th AFTER your 11:00 AM IRS Service Center local drain.

The 2007.1.07 (SR-7) release of 1040 ValuePak will enable the e-filing of these forms. In preparation for this change we plan to release SR-7 at 9:00 PM EST on Sunday, February 10th. The Auto Updater will update your software before the start of business on Monday. After applying SR-7, please open, recalculate, save, wrap-up and transmit any returns being held because of the above forms. DO NOT transmit the returns until AFTER the February 11th, 11:00 AM drain, as the IRS will automatically reject them. 

As a result of these AMT changes and other corrections, beginning Thursday, February 14th, we will require all e-filed returns to be prepared with SR-7. 

The IRS also requested us to forward information about rising volumes next week because of delayed AMT returns. The current IRS systems limit the number of returns processed in a day and a week. If the IRS daily limit is exceeded, the acknowledgments for these returns will not be processed until the following day’s drain. If the IRS exceeds the weekly limit, some taxpayers’ returns (and refunds) may not be released until the following cycle. We will post any IRS delays here at the News Center as soon as we know about them.
SBBT Phone Numbers 02/08/08 7:59 PM EST
SBBT is still receiving an unusually high number of taxpayer calls on their Tax Professional Support line. It is important to utilize their customer service lines appropriately so that you will have little or no wait time if you require live customer support. SBBT staffs and trains each area so that they can provide the best service for each of these groups. Please DO NOT provide your taxpayer clients any number other than the two Taxpayer Support lines listed below:

TAXPAYER Automated Support - (800) 455-SBBT [7228]
TAXPAYER Live Support - (800) 901-MONEY [6663]

The following number is for YOUR USE ONLY:
TAX PROFESSIONAL Live Support - (800) 779-SBBT [7228]
Mississippi State Returns 02/08/08 1:04 PM EST
Mississippi experienced technical problems while processing e-file acknowledgements for all taxpayers between January 23 and February 4. Mississippi believes the problem is now resolved and is in the process of re-hanging all affected acknowledgements. Due to the large volume of returns involved, this process is taking more time than expected. As a result, acknowledgments for Mississippi State returns are temporarily delayed until Mississippi resolves its IRS retrieval issue. They expect to have the issue resolved by Monday, February 11.
Delayed AMT Related Forms 02/07/08 12:17 PM EST
The IRS is enabling efile for the following delayed AMT related forms and schedules on Monday, February 11:
  • Form 5695, Residential Energy Credits
  • Form 8396, Mortgage Interest Credit
  • Form 8859, District of Columbia First-Time Homebuyer Credit
  • Form 8863, Education Credits
  • Schedule 2 (Form 1040A), Child and Dependent Care Expenses

It's expected that more than 3 million returns will then be efiled. The expected increase in volume may result in delays in acknowledgement files, particularly during the first week of efiling AMT impacted returns. The IRS expects substantial delays, but also expects delivery of Acknowledgements well within the 48 hours stated in section 12.10 of IRS Publication 1346.

IRS Funding 02/06/08 7:00 PM EST
SBBT has received the weekly IRS funding. SBBT expects to release PERC check print authorizations starting at approximately 7:00 PM EST. The funding file received by SBBT is very large and they anticipate it may take more than 12 hours to release all associated PERC checks. Taxpayers whose tax returns were IRS accepted before Noon on Thursday, January 31 are likely to have their refunds paid this week. 

The next two or three funding cycles from the IRS will be quite large, and based on prior year funding patterns they are typically delayed by the IRS up to 24 hours. SBBT will be posting the file as soon as they get it, but as they are quite large you will see check print authorizations coming to you throughout the day tomorrow. We thank you for your patience on this. 

As you issue checks to your clients for the next few weeks, tell them to have the check cashing establishment verify the checks at the website listed on the check if they have internet access. Although SBBT has designed the telephone verification system to be quite effective, the website verification will be quicker and easier than using the automated telephone number or calling SBBT live support.
Checking EF Rejections 02/06/08 6:55 PM EST
You can use the “EF Rejection Detail” report that is available in the Electronic Filing Reports list in the Report Center. By default this report will also include state rejections. Or, use the “IRS Rejections” filter in the client grid. The Federal Filing Tab will provide you with the reason a return was rejected.
IRS Funding 02/06/08 12:00 PM EST
As of 12:00 PM EST, SBBT has not received the weekly tax refund funding from the IRS. The next opportunity to receive the funding is late this afternoon. If the IRS funding is not received this afternoon, the next opportunity is tomorrow morning, February 7, 2008.
SBBT Offline  02/01/08 9:31 PM EST
SBBT has informed us they will be performing system maintenance February 2nd from 5:00 AM EST to 8:00 AM EST. All SBBT processing will be down during that time, including check verification and RAL Advances.
#1 Fourth Consecutive Year! 02/01/08 9:24 PM EST
We're pleased to announce that we were first in the nation to receive and distribute IRS Acknowledgements for the fourth consecutive year! Our quick turn-around time means satisfied clients for you and the chance to do more business faster. Our lead in delivering acknowledgements and printing checks is no accident. We worked hard to make certain everything was up, running and ready so we could serve you in the best possible manner. Thank you for choosing us as your software provider!
Check Printing Reconciliation 02/01/08 9:17 PM EST
After you finish printing your checks be sure to connect again to our Filing Center to send your check print records back to us as soon as you can. This helps reconcile SBBT's system to recognize what the check numbers are for live check verification purposes.
IRS Warns of New E-Mail and Telephone Scams  02/01/08 9:09 PM EST
WASHINGTON — The Internal Revenue Service has warned taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure. The IRS expects such scams to continue through the end of tax return filing season and beyond. The most recent scams brought to IRS attention are described here: http://www.irs.gov/newsroom/article/0,,id=178061,00.html
Mississippi State Returns 02/01/08 9:06 PM EST
The State of Mississippi has informed us it is still experiencing issues retrieving Mississippi State returns from the IRS, and all companies are impacted. Mississippi expects to resolve this issue by Monday, February 4. As a result, acknowledgments for Mississippi State returns are temporarily delayed until Mississippi resolves its IRS retrieval issue.
IRS Funding 01/30/08 12:34 PM EST
Santa Barbara Bank & Trust received the weekly IRS funding today, January 30. Taxpayers whose refunds are likely to be paid this week are those whose tax returns were IRS accepted before Noon on Thursday, January 24. SBBT has processed the refunds and will begin releasing the associated PERC check print authorizations after 3:00 PM EST.
Mississippi State Returns 01/29/08 6:25 PM EST
The State of Mississippi informed us it is experiencing issues retrieving Mississippi State returns from the IRS, and all companies are impacted. Mississippi says it expects to resolve this issue by Thursday, January 31. As a result, acknowledgments for Mississippi State returns transmitted between January 23 and January 25 are temporarily delayed until Mississippi resolves its IRS retrieval issue.
State Acknowledgement Delays - Update 01/27/08 3:15 PM EST

Delayed Louisiana acknowledgements have been received. West Virginia does not anticipate sending acknowledgements until February 1.
Delayed IRS Acknowledgements 01/26/08 11:20 AM EST
Acknowledgment files for the Kansas City and Fresno Submission Processing Centers are delayed.
Social Security Benefits Misstated on 1099-SSA 01/25/08 8:43 PM EST
The Social Security Administration has supplied the wrong tax information to about 2.7 million Americans. The incorrect data was contained on some 1099-SSA forms sent out earlier this month. 1099-SSAs are sent to people who receive Social Security benefits, reporting benefits they received during the year. Benefit information is used to file income tax returns. The incorrect forms over-reported the amount of benefits received by some Social Security beneficiaries who purchased Medicare Advantage or prescription drug plans under Social Security parts C and D. The incorrect information is in Box 3, Benefits Paid. In some cases, Social Security computers preparing the 1099s included premiums for plans paid in 2006 as part of benefits received in 2007. If you receive a call questioning information reported on a 1099-SSA, explain what happened and tell the caller corrected forms will be sent to all affected Social Security recipients, and to the IRS, by the end of the month. If they have already used information on a 1099-SSA to file a return for 2007 and they receive a new 1099, they'll need to file an amended return, Form 1040X. If a taxpayer believes their Form 1099-SSA is incorrect but does not receive a corrected form from SSA by mid-February, advise the taxpayer to contact SSA at 1-800-772-1213 (TTY 1-800-325-0778).
Reminder to Retain Forms 8879 in Your Files  01/25/08 8:33 PM EST
Unfortunately, the IRS Submission Processing Centers are still receiving Forms 8879 from some tax professionals and taxpayers. The Andover and Austin Processing Campuses receive thousands of these forms each year, and as a result, they must return them to the ERO. The process of returning these forms to the EROs reduces the time the IRS e-help desk has to devote to your inquiries. Please do not send Forms 8879 to IRS and remind clients not to send Forms 8879 either. Keep these forms in your office files for three (3) years from the due date of the return, or the IRS Acknowledgement date, whichever is later. You may electronically image and store these forms by using the guidelines in Revenue Procedure 97-22, Retention of Books and Records. You can easily access this document by searching for Internal Revenue Bulletin 1997-13 on www.irs.gov. For further information on IRS e-file record keeping requirements select Record Keeping Requirements from the drop down menu on your Launch Pad.
Filing Center Scheduled Maintenance  01/25/08 8:24 PM EST
We plan to perform Filing Center scheduled maintenance Sunday, January 27th between at 5:30 AM EST and 7:30 AM EST. During this time our Filing Center will be unavailable.
State Acknowledgement Delays - Update 01/25/08 8:20 PM EST
Delayed acknowledgements from Colorado, District of Columbia, Mississippi and Ohio have been received. Louisiana acknowledgements from Early IRS Hub testing are still delayed. The State is working with the IRS to resolve this issue which impacts everyone. West Virginia does not anticipate sending acknowledgements until February 1.
Reprinting Checks is Easy! 01/25/08 10:00 AM EST
Common check printing mistakes include printing a check upside down, misprinting a recipient’s address, and printer jams ruining your check stock – but don’t let these or other innocent mistakes panic you. 1040 ValuePak makes it easy to void and reissue any misprinted or damaged check with just a few clicks in seconds! To reprint a damaged or unusable check click Tools > Check Maintenance. In the Check Maintenance grid, click the check you want to void and reissue. Click Void and Reissue in the Maintenance Activities box and then click Process. When the confirmation dialog appears, click Yes. The check now appears in the Check Printing grid again. Simply click Tools and Print Checks to view and reprint the check.
State Acknowledgement Delays - Update 01/24/08 7:00 PM EST
Delayed Acknowledgements from Colorado, District of Columbia, and Mississippi have been received. Louisiana and Ohio Acknowledgements from Early IRS Hub testing are still delayed. The States are working with the IRS to resolve this issue which impacts everyone.
IRS Funding  01/24/08 10:45 AM EST
SBBT has received the weekly IRS funding today, January 24. SBBT has processed the refunds and all associated PERC check print authorizations have been released. Taxpayers whose refunds are likely to be paid this week are those whose tax returns were IRS accepted before Noon on Thursday, January 17. Transmit now.
Auditing to Ensure W-2 Use  01/23/08 8:47 PM EST
Authorized IRS e-file Providers are prohibited from submitting electronic returns to the IRS prior to the receipt of all Forms W-2, W-2G, and 1099-R from the taxpayer. If the taxpayer is unable to secure and provide a correct Form W-2, W-2G, or 1099-R, the return may be electronically filed after IRS Form 4852 – substitute for Form W-2 – is completed in accordance with the rules of that form. The IRS DOES NOT allow Form 4852 to be filed until February 15, 2008. Efiling returns without W-2's will result in your termination by the IRS from the IRS efile program.

Pay stub Instant Loans are no longer offered by any bank. The Instant Loan Wizard requires you to prepare the tax return using a W-2, and SBBT is auditing EROs to ensure compliance with this policy. SBBT will discontinue service to EROs that submitted tax returns without W-2s. Don’t put your business at risk – submit only tax returns with appropriate forms. 

For further information, see IRS Publication 1345 Chapter 3, "Submitting the Electronic Return to the IRS," on the IRS web site at www.irs.gov.
IRS Funding 01/23/08 3:15 PM EST
As of 3:15 PM EST, SBBT still has not received the weekly tax refund funding from the IRS. The next opportunity to receive the funding is late this afternoon. If the IRS funding is not received this afternoon, the next opportunity is tomorrow morning, January 24, 2008.
SafetyNet Reminder 01/23/08 12:35 PM EST
The IRS recently announced plans to implement a random audit program, closely examining approximately 13,000 taxpayers’ returns in order to provide data for its Discriminant Inventory Function System (an audit scoring program). Congress also recently approved a significant increase in IRS compliance funding, so the likelihood of a random audit will continue to rise in the years to come. Make sure to protect your business and your valued clients by offering SafetyNet! SafetyNet actively shields both your tax preparation business and your clients after the original return is filed by providing up to a maximum of $3,000 coverage for any additional taxes, interest and penalties that may result from an IRS audit. 

To enable SafetyNet click Tools > Options > Application > Tax Preparation and check the "Enable SafetyNet" box. Pricing varies by the type and complexity of each return. 1040 ValuePak automatically generates the taxpayer's invoice for SafetyNet. When there is a bank product, the SafetyNet fee is withheld from the taxpayer's funds and deposited into YOUR bank account by SBBT. When there is no bank product you collect the fee and deposit it into YOUR bank account. We then charge your credit card in the same way we charge efiles.
PERC Checks 01/22/08 11:00 PM EST
The IRS weekly deposit of refunds for returns IRS accepted prior to Noon, Thursday, January 17, 2008, is expected Wednesday, January 23. Consequently, PERC checks based on this weekly funding are expected to be authorized soon after SBBT processes the file. SBBT will not release PERC checks earlier than 3 PM EST each Wednesday.
State Acknowledgement Delays 01/22/08 10:57 PM EST
Acknowledgements from Colorado, District of Columbia, Louisiana , and Mississippi are delayed. We have contacted the States regarding missing and/or late State acknowledgments, which are impacting all Software companies. 

Colorado is still experiencing problems with retrieval of returns.
Louisiana expects to transmit Acknowledgements on January 23. 
District of Columbia and Mississippi have not published an ETA.
Low Cost RALs 01/18/08 11:39 AM EST
You may be unintentionally submitting applications intended to be regular SBBT RALs as the new Low Cost RAL. The new Low Cost RAL limits the taxpayer’s loan to $1,000. While the only option for taxpayers with refunds of less than $1,000 is the Low Cost RAL, it is also available to taxpayers due larger refunds who seek to get a portion of their RAL at a lower price. The Low Cost RAL can be selected two ways. You may manually select a Low Cost RAL, or, when a taxpayer’s refund is below $1,000, 1040 ValuePak will automatically select the Low Cost RAL for you, as that is the only RAL that is available. Once selected, the Low Cost RAL remains selected unless you CLEAR the Low Cost RAL checkbox on the SBBT Bank Application worksheet. 

We will be including a new warning validation when a Low Cost RAL is selected and your client is eligible for a larger RAL with a scheduled update this coming Tuesday, January 22nd. In the mean time we recommend reviewing the bank product selection prior to printing the Truth-In-Lending agreements. If your client desires a full refund as a RAL, simply clear the Low Cost RAL checkbox. And don't forget, with a Low Cost RAL SBBT DOES NOT withhold and pay your fees at the time of funding. Your fees are paid when the IRS FUNDS the loan.
State Acknowledgement Delays 01/16/08 8:59 PM EST
The IRS is experiencing State acknowledgment delays for “piggyback” state returns transmitted prior to January 13, 2008. We are working with the IRS and the affected states as they resolve this issue. Some of the delayed State acknowledgments are coming through today. We expect these acknowledgements to continue coming in through the remainder of the week, as the IRS and states continue to resolve their issues causing the delays. You may continue transmitting State tax returns. We will update you when further information becomes available.
A Message from SBBT: INCREASED IRS SCRUTINY 01/16/08 5:21 PM EST
We have learned from officials at the IRS that this year there will be more scrutiny in return review than ever before. As many of you who have industry experience know, the IRS has a Revenue Protection Strategy (RPS) program in which tax returns they feel are higher risk for unsubstantiated claims of refunds or credits will get pulled from the refund disbursement cycle and be reviewed. This causes a significant delay in the refund disbursement (provided the taxpayer can provide additional information to substantiate the claim), or as we've seen in most cases, part or no funding whatsoever.

Some returns involve questionable W-2 information among other things, but the majority of returns pulled for review contain the Earned Income Credit (EIC). These returns that are in a higher risk category would include factors such as the Head of Household filing status, large EIC amounts, lower income levels, certain EIC dependent claims among other factors they have seen making the EIC claim questionable.

As we at SBBT witnessed last year and in prior years, prior year history and subsequent funding is not always an indicator in determining that the IRS will not pull a return for review this year. The fact that a prior year return was funded with questionable conditions may in fact increase the chance the return will be reviewed this year. We do not know exactly which returns the IRS will pull for review so we must use current and previous year IRS funding patterns as a basis for our loan criteria.

We believe that the IRS screens will affect all industry participants in a similar manner. We are also confident that the Santa Barbara Bank & Trust RAL Program will remain among the most competitive available.

FILING RETURNS WITHOUT W-2s
You should not be e-filing returns or offering bank products using information from a paystub. The IRS does not allow those returns to be filed until February 15th, so we suggest you stop doing it immediately or you may risk suspension from our program. We have been collecting information on tax offices that are suspected of doing so. 

Team SBBT
Customer Service Phone Numbers 01/14/08 02:43 PM EST
As we are now in full tax season, we'd like to remind you to utilize the customer service lines appropriately so that you will have little or no wait time if you require customer support. Each department is staffed and trained so that they can provide the best service for each of these groups. 

WorldWideWeb Tax Technical Support TAX PROFESSIONALS ONLY - (954)946-8235

SBBT TAX PROFESSIONALS ONLY Live Support - (800)779-7228
SBBT TAX PROFESSIONALS ONLY Risk Analysis Group - (800)814-0401

SBBT TAXPAYERS ONLY Automated Support - (800)455-7228
SBBT TAXPAYERS ONLY Live Support - (800)901-6663

IRS e-Help Desk for TAX PROFESSIONALS ONLY - (866)255-0654
IRS TAXPAYERS ONLY - (800)829-1040

We thank you for your consideration.
Error Reject Code 126 01/14/08 12:37 AM EST
If you've received Error Reject Code 126 do the following to correct the return(s):
  • On the Preparer Information Worksheet, select the Firm EIN field. Note: The Firm EIN field should be 00-0000000.
  • Right click on the field and select override from the menu.
  • Press the delete key to delete the 00-0000000 from the field.
  • Wrap-up the return, mark it complete, and select the return for transmission. DO NOT re-open the return as re-opening the return prior to transmission will cause the EIN field to re-populate with 00-0000000.
Error Reject Code 029 01/14/08 12:30 AM EST
If your electronically filed tax returns are rejected by the IRS for Code 029 - EFIN is invalid for IRS Service Center... IRS Rejection Code 29 typically occurs in the following situations:
  • The IRS suspended your EFIN for failure to submit signed Form 8453s for electronically filed returns from last season.
  • The IRS inadvertently failed to activate your EFIN.
  • The IRS has not completed the approval process for your new EFIN application.
  • You received a new EFIN from the IRS and you are electronically filing tax returns using a previous, de-activated EFIN. 

We recommend that you contact the IRS e-help desk at (866)255-0654 to determine the status of your EFIN prior to transmitting any additional tax returns. The IRS e-help desk hours of operation are Monday thru Friday from 6:30 AM CST to 10:00 PM CST and Saturday from 7:30 AM CST to 4:00 PM CST. 

You may also check the status of your EFIN online at the IRS e-services Web site at https://la1.www4.irs.gov/e-services/Registration/index.htm