The IRS added a new Business Rule (or rejection code) 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.