Reject Code NCD400-2550 occurs when:
This error occurs when the residency dates provided on Schedule PN, Part A for part-year residents are inconsistent: the "end date" is listed as being before the "begin date." The dates must align logically, with the residency end date being the same or later than the residency begin date.
Possible Causes:
Typographical Error:
The taxpayer's residency start or end date was entered incorrectly.
Example: The taxpayer's move-out date was entered as earlier than their move-in date.
Misinterpretation of Residency Dates:
The taxpayer's actual move-in or move-out dates were misunderstood or recorded in the wrong fields.
Solution:
1. Review Residency Dates:
Confirm the taxpayer’s residency begin date (when they moved into or out of North Carolina).
Confirm the residency end date (when their residency ended in North Carolina or began in another state).
2. Correct the Dates:
Ensure the residency end date is the same as or later than the begin date.
If the dates are unclear, verify them with the taxpayer.
3. Resubmit the Return:
Update the residency dates on Schedule PN, Part A.
Double-check for other date-related errors and resubmit the corrected return.
Steps to Resolve:
Open Schedule PN, Part A on the return.
Review the fields for:
Residency Begin Date (when the taxpayer moved into or out of NC).
Residency End Date (when the taxpayer’s part-year residency concluded).
Correct the dates as needed:
Residency End Date must be on or after the Residency Begin Date.
Save changes and verify the accuracy of the rest of the return.
Resubmit the return electronically.
Example:
If the taxpayer moved into North Carolina:
Residency Begin Date: 06/01/2024
Residency End Date: 12/31/2024
If the taxpayer moved out of North Carolina:
Residency Begin Date: 01/01/2024
Residency End Date: 04/15/2024
Additional Notes:
This error specifically applies to North Carolina Form D-400 Schedule PN.
Accurate dates are critical, as they determine how income is apportioned between states.
Contact the taxpayer if clarification about their residency period is needed..