The IRS added a new Business Rule (or rejection code) this year that will reject a return with wages in Box 16 of the Form W-2, if either the state abbreviation or state ID field is missing. The alert you see is looking for valid data, and the TaxACT program no longer accepts all 0's. You can enter any of the following in the State ID No. field to surpass this alert: (1) None, (2) Not Applicable, or (3) 000000001.