Several software vendors have had errors in their e-filing applications that have omitted adding back up to $2,400 of unemployment compensation benefits as a result of differences between federal and Wisconsin individual income tax laws (see
2009 Taxation of Unemployment Compensation).
More than 10,000 returns that have fully processed require correction. DOR will correct the returns for these software vendor errors over the next few months. Many taxpayers are receiving a larger refund or a reduction in their amount due that they did not expect. DOR notified vendors of the errors in their applications as they were discovered. As a result many vendors have corrected their applications going forward. Please make sure that you are uploading updates from your software vendor as you continue to use their software to file Wisconsin returns.
When you review software prepared returns and the result is different than you expect, please notify your software vendor immediately. While DOR most likely will identify these errors over time, you may be able to bring about more timely change to the product you are using.
March 1, 2010