DOR recently learned that Lacerte software does not support Schedule JC (Jobs Creation Deduction). The software does allow a user to enter the Schedule JC subtraction on line 11, Form 1, and the preparer is asked to manually prepare and attach the Schedule JC. However, the software should not have allowed the return to be e-filed. Intuit has identified that 319 e-filed returns were submitted via modernized e-file (MeF) in error between March 21 and May 2. When the MeF return data was received by DOR, there was no subtraction code or Schedule JC. Lacking this information, the department denied the claimed jobs creation deduction. Lacerte intends to update the software to disallow MeF e-filed returns with a Schedule JC subtraction.
Persons who had their jobs creation deduction denied for lack of substantiation as a result of this issue may appeal the adjustment within 60 days of this notice, July 16, 2012. Appeals should include a copy of the Schedule JC and notice that Lacerte software was used. If the appeal period has passed, see the tax releases in Wisconsin Tax Bulletin 128 regarding whether a claim for refund may be filed. Appeals and claims for refund should include a copy of the Schedule JC and notice that Lacerte software was used.
On a related note, Lacerte currently does not support PDF attachments with Wisconsin e-filed returns but will for 2012 returns.
May 17, 2012