Frequently Asked Questions and Answers Concerning Software Tax Products

Why does the return generated from my software tax product look different than the standard return issued by the North Carolina Department of Revenue?

The NCDOR designed a different format for computer-generated returns in 2000. All of the data needed to process the return will be extracted from a scannable band located on the first page of returns. The NCDOR is using the scan band format so that it can process returns faster and more accurately and also make refunds faster. Use of the new format is part of the Department's continuing effort to improve taxpayer service.

The detailed line-by-line information for the amounts in the scan band are shown on accompanying pages. Your software product is transferring information into the scan band from the line-by-line information. The detailed line-by-line information is to assist taxpayers in understanding the form and will not be data-captured.

What computer-generated returns have scan bands?

Scan bands were added to many computer-generated returns.
Corporate: CD-401S, CD-405, CD-425, NC-478
Individual: D-400, D-400TC, D-410
Partnership: D-403, D-403TC
Estate and Trust: D-407, D-407TC

Why has the NCDOR rejected some paper returns?

There are three common reasons why returns generated from software tax products are rejected.

• The return was generated using an unauthorized software product and therefore was not recognized by the Department's processing system.
• The print quality of the return is so poor the information on the return is not legible.
• The submitted return was a photocopy that was resized in the copying process to the extent that the Department's processing system could not extract data from the return. Only original returns are accepted.

Is there a list of approved software tax products?

Yes. This list is available to the public via the NCDOR web site. The list is updated weekly throughout the approval season. Click here to access the list.

My paid preparer entered an old address on my return. Can I cross it out and write in my current address?

No. Ask your paid preparer to print another return with the correct address. NCDOR uses the address in the scan band for its records. Hand corrections may not be noticed.

I mistyped my social security number on my return. Can I write the correct number above the printed social security number?

No. Software products are designed to allow for the correction of data. Correct the SSN in the product and reprint a corrected return.

Last modified on: 04/25/08 11:03:21 AM.