The IRS added a new Business Rule (or rejection code) that will reject a return with wages in Box 16 of Form W-2 Wage and Tax Statement, 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 0s. You can enter any of (1) None, (2) Not Applicable, or (3) 000000001 for the State ID No. to surpass this alert.

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