2009
IDAHO
BUSINESS &
INDIVIDUAL
E-FILE (MEF)
HANDBOOK
October 1, 2009
TABLE OF CONTENTS
Introduction ....................................................................................................................... 1
Contact Information ........................................................................................................... 1
Idaho MeF Calendar for Tax Year 2009............................................................................ 1
Publications ....................................................................................................................... 1
Idaho State Tax Commission ........................................................................................ 1
Internal Revenue Service .............................................................................................. 1
Federal/State Electronic Filing (MeF) Process.................................................................. 2
EFIN and ETIN .............................................................................................................. 2
Idaho Test Data................................................................................................................. 2
State Only, Short Period, Fiscal, and Amended Filing ...................................................... 2
Idaho Forms Supported for E-Filing .................................................................................. 3
Exclusions from Electronic Filing ...................................................................................... 4
Transmitting the Idaho Electronic Return .......................................................................... 4
Idaho Acknowledgement ................................................................................................... 5
Nonreceipt of Idaho Acknowledgment Record .................................................................. 5
Responsibilities ................................................................................................................. 6
Electronic Filers, Transmitters, EROs ........................................................................... 6
Compliance ................................................................................................................... 6
Timeliness of Filing ....................................................................................................... 6
Deadline for Filing ......................................................................................................... 6
Responsibility to Your Clients ....................................................................................... 6
Changes on the Return ..................................................................................................... 6
Handling Problems ............................................................................................................ 7
Postal Address Standards................................................................................................. 7
Appendix A – 2009 Idaho Business and Individual E-File (MeF) Reject Codes ............... 8
Appendix B – 2009 Idaho Individual Legacy E-File (EMS) Reject Code vs. MeF Reject
Code Matrix ..................................................................................................................... 12
INTRODUCTION
The Idaho State Tax Commission (STC), in conjunction with the Internal Revenue Service
(IRS), accepts state individual, corporate, S corporate and partnership income tax returns and
corresponding forms for tax year 2009 by method of the Modernized E-File system (MeF). The
accepted forms are identified in the General Information section.
This handbook expands on applicable IRS publications listed below. All specifications,
requirements, and instructions defined in these publications apply to the Idaho Federal/State
Electronic Filing (MeF) Program unless otherwise stated.
The Tax Commission accepts electronically transmitted individual, corporate, S-corporate, and
partnership income tax refund, zero balance, and tax due returns. Direct deposit isn’t available
for e-filed business returns.
CONTACT INFORMATION
Taxpayers, Preparers, Transmitters, and EROs
Chris Vega ............................................................................................................. (208) 334-7822
christopher.vega@tax.idaho.gov
Tax Information and Forms
Toll Free ................................................................................................................. (800) 972-7660
Boise Area ............................................................................................................. (208) 334-7660
IDAHO MeF CALENDAR FOR TAX YEAR 2009
PATS testing begins (in conjunction with the IRS) ............................................ November 2, 2009
Begin transmitting returns to IRS/Idaho .............................................................. January 18, 2010
NOTE: Idaho follows the IRS MeF calendar.
PUBLICATIONS
Idaho State Tax Commission
2009 Idaho Business and Individual E-File (MeF) Handbook
2009 Idaho Business and Individual E-File (MeF) Specifications
Internal Revenue Service
Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax
Returns
Publication 1436, Test Package for Electronic Filers of Individual Tax Returns
Publication 3112, IRS e-file Application and Participation
Publication 4162, Modernized e-file Test Package for Forms 1120/1120S
Publication 4163, Modernized e-file Handbook for Authorized e-file Providers for Form
1120, 1120S, and 1065
Publication 4164, Modernized e-file Guide for Software Developers and Transmitters
Publication 4505, Modernized e-file Test Package for Forms 1065/1065-B
1
ACCEPTANCE AND PARTICIPATION
If the IRS approves you to e-file, you’re automatically accepted for Idaho. We don’t require a
separate application to be submitted. Idaho will accept returns electronically from any IRS
approved software provider. Software providers will work in a cooperative partnership effort
with the Tax Commission.
FEDERAL/STATE ELECTRONIC FILING (MeF) PROCESS
HOW FEDERAL/STATE MeF FILING WORKS
Idaho returns included in the Federal/State Electronic Filing (MeF) Program will be transmitted
to the IRS Service Center along with the federal return. All Idaho returns must include a
complete copy of the federal return to include all PDF attachments, forms, and schedules.
Once the IRS has notified the ERO of successful submission, Idaho can retrieve the files from
the IRS. Idaho won’t receive any state data from a rejected federal return.
NOTE: The IRS acknowledges only that it received the state data. The IRS acknowledgment
isn’t an indication that Idaho has “received” your state return. You must receive the Idaho
acknowledgment to ensure your state return has been received.
The Idaho acknowledgment system is designed to inform transmitters that the Idaho return has
been retrieved and the return is being processed by Idaho. When Idaho receives the return
from the IRS, it will generate a receipt acknowledgment record. Idaho will also generate a
processing acknowledgement to indicate if the return was accepted or rejected. This record will
be available for retrieval by transmitters after one business day.
Contact Idaho if you receive the federal acknowledgment, but no state acknowledgment after
one business day.
ACCEPTANCE PROCESS
EFIN and ETIN
The IRS assigns the Electronic Filing Identification Number (EFIN) and Electronic Transmitter
Identification Number (ETIN). The Tax Commission will use these same numbers in the
Federal/State Electronic Filing Program.
These numbers are used in the acknowledgment system to identify preparers and transmitters.
IDAHO TEST DATA
All participants are required to follow the IRS testing procedures for acceptance into the
program. Only software developers are required to test their software with Idaho. Participants
must transmit live return data using only Idaho-accepted federal/state electronic filing software.
STATE ONLY, SHORT PERIOD, FISCAL, AND AMENDED FILING
2
Idaho supports filing of the following returns through the Federal/State Electronic Filing (MeF)
Program:
State-only
Amended
o Business: Tax years 2008 and 2009
o Individual: Tax year 2009 only
Fiscal (tax period must match Federal filing)
Short period (tax period must match Federal filing)
A state-only, amended, fiscal, or short period return is produced through software to build a
complete state packet that includes a copy of the federal return. For an amended return, the
copy of the federal return must reflect the amended federal return.
IDAHO FORMS SUPPORTED FOR E-FILING
Supporting federal returns, schedules, and PDF attachments are required for all electronic
returns.
1. The Tax Commission will support E-Filing (MeF) of the following forms:
Form 40
Idaho Individual Income Tax Return
Form 41
Idaho Corporation Income Tax Return
Form 41S
Idaho S Corporation Income Tax Return
Form 43
Idaho Part-year resident and Nonresident Income Tax Return
Form 65
Idaho Partnership Return of Income
Form 39R
Form 39NR
Form 42
Form 44
Form 49
Form 49C
Form 49R
Form 55
Form 56
Form 67
Form 68
Form 68R
Form 69
Form 71
Form 71R
Form 75
Form CG
Form ID K-1
Idaho Supplemental Schedule (Form 40)
Idaho Supplemental Schedule (Form 43)
Idaho Supplemental Schedule for Multistate/Multinational
Businesses
Idaho Business Income Tax Credits and Credit Recapture
Idaho Investment Tax Credit
Idaho Investment Tax Credit Carryover
Recapture of Idaho Investment Tax Credit
Idaho Credit for Qualifying New Employees
Idaho Net Operating Loss Carryforward/Carryback
Credit for Idaho Research Activities
Idaho Broadband Equipment Investment Credit
Recapture of Idaho Broadband Equipment Investment Credit
Idaho Incentive Investment Tax Credit
Idaho Biofuel Infrastructure Investment Tax Credit
Recapture of Idaho Biofuel Infrastructure Investment Tax Credit
Idaho Fuels Use Report
Idaho Capital Gains Deduction
Partner’s, Shareholder’s, or Beneficiary’s Share of Idaho
Adjustments, Credits, Etc.
2. The Tax Commission will support PDF attachments of the following forms:
Form 41A
Supplemental Schedule Of Affiliated Entities
Form 41ESR
Underpayment of Estimated Tax
3
Form 49E
Property Tax Exemption Election Form
Form 49ER
Recapture of Qualified Investment Exemption from Property Tax
Form 70
Idaho Statement of Credit Transfer
Form 75-IMV
Idaho Fuels Tax Refund Worksheet Intrastate Motor Vehicles
Form 75IC
Fuels Tax Refund Worksheet for IFTA Licensees
Form 402
Idaho Individual Apportionment for Multistate Businesses
ITC Equipment list
Combined Reporting Spreadsheet
3. The Tax Commission will accept the following return types:
Fed/State (linked): An original federal return submitted with one original state return.
State only (unlinked): A state return submitted with a copy of the federal return.
Amended return
Fiscal return (tax period must match Federal filing)
Short period return (tax period must match Federal filing)
4. Amounts that require a description:
Interest and dividends not taxable under the Internal Revenue Code (IRC)
Taxes measured by net income
Interest on U.S. government obligations
Nonbusiness income
Nonbusiness expense offset
Income allocated to Idaho
Sub-bonus depreciation (e.g. Form 4562)
Other additions
Other subtractions
Other income
Other deductions
EXCLUSIONS FROM ELECTRONIC FILING
In addition to the returns listed in IRS publications as excluded from federal electronic filing for
the 2009 tax filing period, the following documents will not be accepted for electronic filing in
Idaho in 2009:
Prior year returns
o Business: tax years before 2008
o Individual: tax years before 2009
Form 84
Form 84R
Form 85
Form 85R
IAT transactions will not be processed. Paper checks will be sent to taxpayers that
indicate the ultimate destination of a direct deposit refund is a foreign bank.
TRANSMITTING THE IDAHO ELECTRONIC RETURN
4
Since the Idaho electronic return is transmitted with the federal return, the transmitter must
follow all electronic transmitting procedures, communication requirements, and technical
specifications required by the IRS.
Participants in the Federal/State Electronic Filing (MeF) Program must confirm with their
software developer or direct transmitter that the software is capable of processing and
transmitting the state data along with the federal data to the appropriate IRS service center.
IDAHO ACKNOWLEDGEMENT
The Tax Commission will generate an acknowledgement of acceptance or rejection for all
returns received. The acknowledgement record will be in a format approved and agreed upon
by the IRS, state agencies, transmitters, and software developers.
Transmitters and software developers should allow one business day to receive the State
acknowledgement before contacting the Tax Commission.
Receipt Acknowledgement
Idaho provides a receipt acknowledgment for successfully retrieving returns through the IRS
MeF system. Idaho will reject any return submitted in the wrong format or that cannot be
properly identified. If this occurs, the state will inform you of the rejection through an
acknowledgement. Once the preparer corrects the return, the preparer may transmit the return
as a state-only return. Be sure to confirm that your software package supports state-only
transmissions. If the electronically filed Idaho return can’t be re-transmitted, the ERO must
submit a paper tax return to the Tax Commission.
Processing Acknowledgment
Idaho provides one of the following two processing acknowledgments for successfully reading
returns retrieved through the IRS MeF system.
Accepted – This acknowledgment indicates the electronic return was received and successfully
completed the business rule validation process.
Rejected – This acknowledgement indicates the electronic return was received but failed to
complete the business rule validation process. The acknowledgement will contain a reason
indicating the error causing the rejection. (See Appendix A – 2009 Idaho Business and
Individual E-File (MeF) Reject Codes).
NONRECEIPT OF IDAHO ACKNOWLEDGMENT RECORD
Before contacting the Tax Commission, ensure that:
You have received an IRS acknowledgment record;
The IRS accepted the federal tax return;
The transmission included an Idaho state return, and
You have the submission ID.
Contact the Tax Commission if:
5
You receive IRS acknowledgment records more than two working days ago and you
have not received Idaho acknowledgment records for the same tax returns.
Whom to contact:
To check on the status of an Idaho acknowledgment record, call (208) 334-7822. Please have
the following information available when making the call:
Electronic Filer ID Number (EFIN)
Federal EIN
Transmission date
Submission ID
Contact name and phone number
RESPONSIBILITIES
Electronic Filers, Transmitters, EROs
Electronic Filers, Transmitters, and Electronic Return Originators (ERO) must abide by the
terms set forth in this Handbook and must maintain a high degree of integrity, compliance, and
accuracy in order to continue to participate in the Federal/State Electronic Filing Program. They
must also abide by the following requirements:
Compliance
All electronic filers must comply with the requirements and specifications in the IRS publications,
this handbook, and the 2009 Idaho Business and Individual E-File (MeF) Specifications.
Timeliness of Filing
Transmitters must ensure that electronic returns are filed in a timely manner. The date of the
IRS acknowledgment will be considered the filing date for an electronically filed Idaho return.
Transmitters must confirm acknowledgment of the state return by the Tax Commission.
Deadline for Filing
The Tax Commission will accept electronically filed Idaho returns that have been submitted for
transmission to the IRS.
Responsibility to Your Clients
Preparers have been entrusted with the task of filing a client’s tax return and must assume the
responsibility for the return’s timely arrival at the Tax Commission.
CHANGES ON THE RETURN
If the transmitter or taxpayer wishes to make any changes after the return has been accepted
and acknowledged, the transmitter or taxpayer can file an amended return with corrected
changes if the software offers this option.
6
If the software does not offer this feature, the transmitter or taxpayer must file a corrected return
on paper. Mail Idaho returns to the following address:
IDAHO STATE TAX COMMISSION
PO BOX 56
BOISE ID 83756-0056
HANDLING PROBLEMS
For help with problems relating to the electronically filed state return, taxpayers, preparers,
transmitters, and EROs can call (208) 334-7822.
POSTAL ADDRESS STANDARDS
RULES for taxpayer addresses:
Upper case letters are preferred but not required.
Omit punctuation, except the hyphen in the zip code.
Use directional abbreviations.
Should Be:
234 NW SMITH ST
Not:
234 NORTHWEST SMITH STREET
234 NW SMITH STREET
678 MAIN DR S
678 MAIN DRIVE SOUTH
101 N BAY LN
101 NORTH BAY LANE
599 BAY BLVD SW
599 BAY BOULEVARD SOUTHWEST
127 N 12TH ST
127 NORTH 12TH
127 N 12TH STREET
Postal Box:
Not:
PO BOX 213
P O BOX 213
BOX 213
Rural Route Addresses:
Not:
RR 2 BOX 152
RFD and RD = RR
RT 2 BOX 152
Common Abbreviations:
APARTMENT
BUILDING
DEPARTMENT
APT
BLDG
DEPT
FLOOR
ROOM
SUITE
7
FL
RM
STE
Appendix A – 2009 Idaho Business and Individual E-File (MeF) Reject Codes
Reject
Code
0001
0002
0003
0004
0007
Error Message
Duplicate Submission ID
Missing copy of federal tax return
Missing form type indicator
(41/41S/ 65/40/43)
Return includes a value in both
the tax due
Form 41 line 56,
Form 41S line 61,
Form 65 line 56
Form 40, line 52
Form 43, line 70
and overpayment
Form 41 line 59,
Form 41S line 64,
Form 65 line 59
Form 40, line 55
Form 43, line 73
Duplicate EIN or SSN for the
same tax period
Notes
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
* If the return is a “zero balance due” report “0”
in the tax due field.
New for Individual MeF returns
New for Individual MeF returns
Missing electronically filed returns with value in appropriate field:
0240
Missing W-2 or 1099 with value
on
Form 40, line 49 or
Form 43, line 9 or 67
Missing Federal Schedule C or
CEZ with value on
Form 43, line 13
Missing Federal Form 4797 with
value on
Form 43, line 15
Missing Federal Schedule E with
value on
Form 43, line 18
Missing Federal Schedule F with
value on
Form 43, line 19
0250
Missing Form 39R or 39NR with
value on
Form 40, line 10
Form 43, column B, line
31
0200
0210
0220
0230
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
8
0270
0280
0290
0340
0500
1000
0050
0060
0600
1010
0710
0610
Missing Federal Schedule A with
value on
Form 40, line 15
Form 43, line 35
Missing Federal Schedule A with
value on
Form 40, line 16
Form 43, line 36
Missing Form 39R or 39NR with
value on
Form 40, line 24
Form 43, line 45
Missing Form 39R or 39NR with
value on
Form 40, line 47
Form 43, line 65
Missing Idaho Form CG with
value on
Form 39R, line 10
Form 39NR, Part B, line 6
Missing Form 42 with value less
than 100% on
Form 41, line 33
Form 41S, line 37
Form 65, line 35
Missing Form 44 with value on
Form 41, line 41 or 45
Form 41S, line 46 or 51
Form 65, line 44 or 48
Form 40, line 28 or 33
Form 43, line 49 or 53
Missing Form 75 with value on
Form 41, line 47 or 54
Form 41S, line 52 or 59
Form 65, line 49 or 54
Form 40, line 31 or 48
Form 43, line 51 or 66
Form 49 with value on
Form 44, Part I, line 1,
Column A
Form 49C with value on
Form 44, Part I, line 1,
Column B
Form 49R with value on
Form 44, Part II, line 1
Form 55 with value on
Form 44, Part I, line 4,
Column A
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
Removed this reject code
New for Individual MeF returns
New for Individual MeF returns
9
0620
0630
0640
0720
0730
1200
1210
Form 67 with value on
Form 44, Part I, line 5,
Column A or Column B
Form 68 with value on
Form 44, Part I, line 6,
Column A or Column B
Form 69 with value on
Form 44, Part I, line 7,
Column A or Column B
Form 68R with value on
Form 44, Part II, line 2
Form 69R with value on
Form 44, Part II, line 3
Form 71 with value on
Form 44, Part I, line 11
Column A or Column B
Form 71R with value on
Form 44, Part II, line 6
Missing binary attachments with value in
appropriate field:
Form 49E with value on
Form 41, line 10
Form 41S, line 13
1020
Form 65, line 11
Form 49ER with value on
Form 41, line 49
Form 41S, line 54
Form 65, line 51
Form 40, line 34
1030
Form 43, line 54
Form 75IMV with value on
Form 75, Section III, line
4,6 or 14
1050
Form 75IC with value on
Form 75, Section III, line 5
or 13
1060
Form 41ESR with value on
Form 41, line 51
1070
Form 41S, line 56
Combined reporting spreadsheet
with value and Form 41A
Supplemental Schedule Of
Affiliated Entities
1160
Form 41, line 8
ITC Equipment list with value on
1240
Form 44, Part I, line 1a
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
New for Individual MeF returns
Removed reject code for 2009
New for Individual MeF returns
Changed line number and new for Individual
MeF returns
PDF Attachment
Form_49E_01
Form_49ER_01
New for Individual MeF returns
Form_75IMV_01
New for Individual MeF returns
Form_75IC_01
New for Individual MeF returns
Form_41ESR_01
Form_41A_01 and
Comb_Report_Sheet_0001(New)
ITC_Equip_List_01(New)
New for Individual MeF returns
Missing description element within EntityDetailType with value in appropriate field:
10
1110
1120
1130
1150
Interest on U.S. Government
obligations statement with value
on
Form 41, line 21,
Form 41S, line 25
Form 65, line 23
Nonbusiness income statement
with value on
Form 41, line 25
Form 41S, line 29
Form 65, line 27
Nonbusiness expense statement
with value on
Form 41, line 26
Form 41S, line 30
Form 65, line 28
Income allocated to Idaho
statement with value on
Form 41, line 35
Form 41S, line 39
Form 65, line 37
11
Appendix B – 2009 Idaho Individual Legacy E-File (EMS) reject code vs. MeF reject code
matrix
Legacy E-File (EMS) reject codes vs. MeF reject code
matrix
EMS code
Not in EMS
0002
Not in EMS
Not in EMS
0001
0010
0020
0030
0040
0050
0060
0070
0080
0090
0100
0110
0200
0210
0220
0230
0240
0250
0260
0270
0280
0290
0300
0310
MeF code
0001
0002
0003
0004
0007
250 & 260
0270
0280
0290
0050
0060
0050
1030
0340
0060
0200
0200
0210
0220
0230
0240
0250
0260
0270
0280
0290
0050
0060
EMS code
0320
0330
0340
0350
0360
0500
0510
0600
0610
0620
0630
0640
0680
0690
0700
0705
0710
0720
0770
0780
0790
0795
Not in EMS
12
MeF code
0050
1030
0340
0060
0200
0500
0500
0600
0610
0620
0630
0640
Not in MeF
Not in MeF
Not in MeF
1200
0710
0720
Not in MeF
Not in MeF
Not in MeF
1210
1240
