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VIRGINIA DEPARTMENT of TAXATION Handbook for Electronic VIRGINIA DEPARTMENT OF TAXATION Handbook for Electronic Filers of Individual Income Tax Returns Publication VA-1345 (Tax Year 1999) TABLE OF CONTENTS PAGE INTRODUCTION .......................................................................1 CALENDAR ...........................................................................1 CONTACT TELEPHONE NUMBERS ........................................................2 Taxpayers ......................................................................2 EROs, Transmitters and Software Developers ...........................................2 FEDERAL/STATE ELECTRONIC FILING ....................................................2 New for 1999 ....................................................................2 Federal/State Electronic Filing Process ................................................2 ACCEPTANCE PROCESS ...............................................................3 Software Developers ..............................................................3 EROs/Transmitters ...............................................................3 VIRGINIA ELECTRONIC RETURN .........................................................3 Acceptable Virginia Returns .........................................................3 Unacceptable Virginia Returns .......................................................4 Taxpayer Names and Addresses .....................................................4 Locality Codes ...................................................................5 TRANSMITTING THE VIRGINIA ELECTRONIC RETURN ........................................5 ACKNOWLEDGMENT OF VIRGINIA ELECTRONIC RETURNS ...................................5 FORM VA-8453 ........................................................................5 IRS Declaration Control Number (DCN) ................................................6 Part I Tax Return Information ........................................................6 Part II Direct Deposit ..............................................................6 Part III Affirmation of Taxpayer .......................................................6 Part IV Affirmation of ERO and Paid Preparer ...........................................6 Attachments to Form VA-8453 .......................................................6 Filing of Form VA-8453 ............................................................6 Corrections to Form VA-8453 ........................................................7 REFUNDS ............................................................................7 Paper checks ....................................................................7 Direct Deposit ...................................................................7 Refund Anticipation Loans ..........................................................8 Refund Delays ...................................................................8 Accuracy .......................................................................9 Compliance .....................................................................9 Timeliness of Filing ...............................................................9 Deadline for Filing ................................................................9 Changes to the Return ........................................................... 10 Responsibility to Clients .......................................................... 10 Acknowledgments .............................................................. 10 APPENDIX ......................................................................... 11 VIRGINIA ELECTRONIC FILING REJECT CODES ........................................... 15 LOCALITY CODES ................................................................... 19 INTRODUCTION The Virginia Department of Taxation would like to welcome you to the Federal/State Electronic Filing Program and to tell you how pleased we are that you will be participating. Last year we processed over 307,000 returns electronically and it is our hope that significantly more returns will be filed electronically in 2000. In this handbook you will find items that are specifically unique to the Virginia Department of Taxation and topics on frequently asked questions. All rules, regulations, and requirements governing tax preparers, transmitters, and originators of returns as stated in the IRS Publication 1345, Handbook for Electronic Filers of Individual Income Tax Returns (Tax Year 1999) are in effect for the Virginia Department of Taxation. It is recommended that you study the IRS Publication 1345 prior to reading the Virginia Publication VA-1345. IRS Publications Publication 1345, Handbook for Electronic Filers of Individual Income Tax Returns (Tax Year 1999) Publication 1346, Electronic Return File Specifications and Record Layouts for Individual Income Tax Returns (Tax Year 1999) Publication 1436, Test Package for Electronic Filing of Individual Income Tax Returns (Tax Year 1999) Virginia Department of Taxation Publications Publication VA-1346, Virginia Department of Taxation Electronic Filing of Individual Income Tax Returns Information for Software Developers (Tax Year 1999) Publication VA-1436, Virginia Department of Taxation Test Package for Electronic Filing of Individual Income Tax Returns (Tax Year 1999) CALENDAR For Tax Period January 1, 1999 to December 31, 1999 Begin Federal/State Software Testing ................................. November 8, 1999 Last Start Date Federal/State Software Testing ........................... January 10, 2000 Begin Transmitting Returns to IRS/VA .................................. January 14, 2000 Last Date to Transmit Federal/State Returns ............................. October 15, 2000 *NOTE: Dates may be subject to change at any time. 1 CONTACT TELEPHONE NUMBERS Taxpayers Tele-Tax refund information (Monday through Friday, 8:00 a.m. to 5:00 p.m.) .....(804) 367-2274 Customer Service Representative (Monday through Friday, 8:30 a.m. to 4:30 p.m.) .(804) 367-8031 EROs, Transmitters and Software Developers Help Desk (Monday through Friday, 8:30 a.m. to 4:30 p.m.) ...................(804) 367-6100 Coordinator - Denise Johnson ..........................................(804) 367-6100 FAX ...............................................................(804) 786-2645 FEDERAL/STATE ELECTRONIC FILING New for 1999 The Virginia Department of Taxation will have the capability to reject returns. We will be accepting the following returns electronically: ! Balance due returns; ! Part-year resident return, form 760PY; ! Nonresident return, form 763; ! Estimated Payments claimed on the returns after March 1, 2000. ! Underpayment of Estimated Taxes by Individuals (form 760C); ! Underpayment of Estimated Taxes by Farmers and Fisherman (form 760F); ! Schedule for Computing the Age Deduction, Addition to Tax, Penalty and Interest, Contributions and Consumer’s Use Tax (schedule NPY for 763 and 760PY). Federal/State Electronic Filing Process EROs and transmitters accepted in the IRS Electronic Filing Program and the Virginia Electronic Filing Program will be able to file both the federal return and the state return in one transmission to the Internal Revenue Andover Service Center. The software used to transmit the data must be certified by both the IRS and the Virginia Department of Taxation. The IRS will acknowledge acceptance of the federal data and receipt of the state data. The IRS acts as a conduit through which the Virginia Department of Taxation will retrieve the state data for processing. The Virginia Department of Taxation will acknowledge receipt of all returns retrieved from the IRS. The returns will then be processed through the Virginia Department of Taxation's computer system. 2 ACCEPTANCE PROCESS Software Developers All software developers are required to follow the IRS and Virginia testing procedures for acceptance into the Federal/State Electronic Filing Program. The Virginia Department of Taxation will provide only software developers with Publication VA-1346, Virginia Department of Taxation Test Package for Electronic Filing of Individual Income Tax Returns. Upon successful completion of the software testing, an acceptance letter will be mailed. EROs/Transmitters The IRS provides Virginia with an Applicant Database file that will be utilized to conduct annual suitability checks on EROs that have applied and been accepted by the IRS. The VA-8633, Application to Participate in the Electronic Filing Program has been eliminated. EROs will no longer receive a letter of acceptance, however you may be contacted if additional information is necessary for acceptance. VIRGINIA ELECTRONIC RETURN The Virginia electronic return will consist of data transmitted electronically to the Virginia Department of Taxation and supporting paper documents to be retained by the ERO/transmitter for a minimum of three years. The electronic portion of the return is the Form 760 or 760S, 760PY, 763, federal Schedules A, C, C-EZ, D, E, F, W-2, W-2G and Form 1099-R. The nonelectronic portion of the Virginia return that must be retained by EROs is the signature form, VA-8453, and the state copy of all W-2s, W-2G and 1099-R. Substitute W-2 forms (Form 4852) and statements created on a personal computer are NOT acceptable. Acceptable Virginia Returns In addition to the returns accepted for federal electronic filing listed in the IRS Publication 1345 for 1999, below is a list of the most popular forms, schedules and certain items on the Virginia return that can be transmitted electronically. 1. resident return - long (Form 760);
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