E-file an income tax return

Modified on Fri, 4 Apr at 5:28 PM

Overview

Taxlab's integration with Inland Revenue (IR) allows income tax returns to be filed directly from the software. There are a number of checks a return must pass before it can be successfully filed.

Pre-checks

Ensure all sense checks have passed.
Ensure the entity is connected to a tax agent. From the navigation bar select Reports > Filing and Payment Schedule, and review the Filing section. In the below example, this entity is not connected to a tax agent, and therefore the method of filing can only be selected as 'paper' and not 'e-file'.
Schedule a filing date. The options are 'file immediately' or 'for later'. For later allows you to select a filing date. This will reflect changes in uplift in the payment schedule based on whether you expect to file the return before or after a particular provisional tax due date.

E-filing in TaxLab

Step 1 – Ready to sign

From the navigation bar select Reports > Filing and Payment Schedule. Each tax return form that is to be filed will display in the Forms section. Next to each form is a checksum, which is a unique combination of letters and numbers for that specific version of the form, and a status. The checksum is also printed on the transcript. In order to start the e-file process, the status of each form should be Draft.
Optional: Under the Files tab, add supporting documents (such as financial statements) that are to be e-filed with the return. All files that have been added to the entity are listed for selection, or a new file can be uploaded.
Select Ready to Sign.
The return status will update to Ready to Sign.
Print the return, either using the printer icon in the navigation bar, or the 'Print' button at the bottom of the page. Check the footer section of the transcript for the checksum.

Step 2 - Ready to file

Once you’ve received the signed transcript from the client, use the Files section to upload the signed transcript. At least one file needs to be attached to this return task.
Select your initials to confirm that the signed transcript is attached, and the checksum on the screen agrees to the checksum on the signed transcript.

Step 3 – Filing

Select E-file Return to submit the tax return to Inland Revenue.
Type FILE and select E-File Return. TaxLab will create a version of the return at this stage.

Step 4 – Monitor return status

From the Taxlab home screen, navigate to Workflow > Returns. Here you can view the status of all income tax returns you have access to.

Once 'E-file return' has been selected, the return will move to Scheduled status. The software will send the return to be e-filed (currently every few minutes). once the return has been e-filed, the status will update to Filed.

If a return is scheduled for filing at a date in the future, it will stay Scheduled until the specified filing date and time.

Managing filing errors

If an e-file error is received from IR, the return status will move to Error. The entity's Filing and Payment Schedule will display the error code along with a brief description. For detailed information on the error and instructions on resolving it, please refer to New Zealand E-file errors

Note the error and select Set return back to draft.
Make required changes to fix the error and follow the above process to e-file again. Note: The checksum will change.

Troubleshooting

Ready to sign button is disabled

Ensure the status of the forms are set to "Draft" and not "Disclosures incomplete". If any show "Disclosures incomplete", navigate to Return > Tax Return Forms and ensure all sense checks are cleared.
Next, verify if the return has been scheduled for filing. Click on "Set a filing date" to schedule it. If you've recently set the return back to draft and "Set a filing date" is disabled, refresh the screen to activate it.