DEPENDENT REBATE ISSUE — FREQUENTLY ASKED QUESTIONS (FAQs)
1. What happened?
CCH experienced an isolated issue where a limited number of tax returns electronically filed using
ProSystem fx e-filing software resulted in certain taxpayers with children being subject to a delayed
payment of their children’s portion of their economic stimulus rebate.
2. What do people need to do to ensure they get their full refund?
Nothing. The IRS is identifying all taxpayers affected by this issue and will directly send a check to
affected taxpayers with the remaining rebate amount that is owed.
3. Who is affected?
A small percentage of taxpayers. The issue as it relates to CCH is contained to a specific group of
taxpayers with children whose 2007 tax returns were filed using ProSystem fx Tax electronic filing
software. Specifically, only people fitting the following criteria may be impacted:
A. Criteria one:
1. With children under 17;
2. Who used Form 1040 or 1040A;
3. Who did not take a Child Tax Credit or Additional Child Tax Credit;
4. Who met the following filing status / income criteria:
o If married filing joint, had income between $129,001 and $198,000; or
o If married filing separate, had income between $74,001 and $99,000; or
o If using one of the other filing statuses and claiming the foreign earned income
exclusion under very limited circumstances; and
5. Whose accounting firms used ProSystem fx Tax software to electronically file their tax returns.
B. Criteria two:
1. With children under 17;
2. Who used Form 1040 or 1040A;
3. Did not take a Child Tax Credit or Additional Child Tax Credit;
4. With no taxable income and earned income of less than $11,750;
5. With combined earned income Social Security benefits and Veterans’ disability payments of
over $3,000; and
6. Whose accounting firms used ProSystem fx Tax software to electronically file their tax returns.
4. Why were these individuals affected?
These individuals were affected because the software did not include the count of children under 17 in
the electronically filed submission of the tax return. However, the information was correct in the
printed tax returns.
5. What was the impact on taxpayers?
Those taxpayers in the group who were affected did not receive the full rebate amount for their child
or children ($300 per child). As individual taxpayers, the parents received their rebate, however they
did not receive the rebate for their children.
6. How many individuals are impacted?
Overall, a relatively small number. We are working now to identify the impacted individuals. At this
time, we do not have a complete estimate. We anticipate it will be fewer than one half of 1% of all
returns prepared with our software.
7. How are you notifying affected customers? How do I know I am an affected customer?
We are alerting our professional customers about the issue via e-fx News so that they can be prepared
to respond to client inquiries, and we are providing them with a scan that they can run against their
client data to identify potentially affected clients. We also are providing information and resources
online at CCHGroup.com/DependentRebate to support our customers in their client communications.
Customers will begin receiving notifications on May 15, 2008.
8. What are you doing to resolve the issue?
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DEPENDENT REBATE ISSUE — FREQUENTLY ASKED QUESTIONS (FAQs)
The issue is resolved. We actively worked with the IRS to achieve the best solution for the customers,
to ensure affected customers receive the rest of the rebate owed in a timely manner. The IRS will
directly send to affected taxpayers the remaining rebate amount that is owed to them. This is an
excellent solution that benefits everyone and requires no action on behalf of the impacted taxpayer.
9. How are you identifying people?
CCH is contacting our customers to inform and support them. The IRS is identifying taxpayers who are
still due a portion of their rebate, and they will directly send to affected taxpayers the remaining
rebate amount that is owed.
10. Will people have to file an amended return to get a refund? Will taxpayers have to wait until
they file their 2008 return to get the full rebate?
No, the IRS will directly send a check to affected taxpayers for the remaining rebate amount that is
owed to them.
11. Whom should people contact if they have a question?
We have created a special web site for affected persons, with information and resources.
Customers of ProSystem fx Tax can visit CCHGroup.com/DependentRebate or call 1-866-852-6406.
A great resource for general questions is the IRS site at http://www.irs.gov
12. How will I know which of our clients are affected and how many there are?
A CCH scan will be available soon to help customers determine which client returns are affected.
13. How many of our clients are affected by this error in your program? Will you be providing a list
of affected returns or do we have to run a scan to identify these returns?
We estimate that fewer one half of 1% of returns prepared by our software are affected. A CCH
scan will be available to help you determine which returns are affected.
14. Where do I find the scans on your web site?
The link will be available on this web site as soon as it is available. Please check back later for more
information.
15. Does this problem only affect tax returns that were e-filed or does it affect paper filed returns
as well?
Relating to CCH, this issue occurred only in the electronic filing of the return.
16. Are there any other software vendors that this affects other than CCH?
Yes. Other vendors are experiencing issues.
17. When and how did you learn about it?
We learned about it as stimulus checks began to be received by taxpayers.
18. Is this part of a broader problem?
Not for CCH. This issue as it relates to CCH electronic filing software is not part of a broader problem.
19. When will customers receive the remainder of their rebate?
Those affected taxpayers who already have received an initial rebate payment (or will before the IRS
dependent rebate solution is fully implemented) did not receive the full rebate amount for their child
or children ($300 per child), but as individual taxpayers, would have received their rebate portion.
These customers can expect to receive a paper check for the remaining dependent portion of their
rebate by mid-summer.
Once the IRS’ fix is in place, the remainder of affected taxpayers will simply receive a single payment
via their already specified paper or electronic preference.
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