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ProSystem fx Tax (SaaS)
2012-1.0
Release Notes
December 2012
Contents • 1
Contact and Support Information 3
Technology Updates 4
Status of IRS Release of 2012 Government Forms and IRS Approach to PendingLegislation 4
ProSystem fx Response to IRS Approach 4
Electronic Filing 4
Electronic Filing Status System 5
Tax Preparation 5
Fiduciary 6
Return Configuration Sets 6
Staff Manager 7
Correspondence 7
Dashboard 8
Practice Interface 9
Workstream Interface 9
Windows 8 Compatibility 9
2011-5.2 Tax Updates 9
Product Updates 10
Individual (1040) Product Updates 10
Partnership (1065) Product Updates 11
Corporation (1120) Product Updates 12
S Corporation (1120S) Product Updates 13
Fiduciary (1041) Product Updates 14
Estate & Gift (706/709) Product Updates 15
Exempt Organization (990) Product Updates 16
Employee Benefit Plan (5500) Product Updates 17
Tax Product Enhancements - Interview View 18
Individual (1040) Product Enhancements - Interview View 19
Partnership (1065) Product Enhancements - Interview View 32
Corporation (1120) Product Enhancements - Interview View 36
S Corporation (1120S) Product Enhancements - Interview View 44
Fiduciary (1041) Product Enhancements - Interview View 48
Employee Benefit Plan (5500) Product Enhancements - Interview View 49
Exempt (990) Product Enhancements - Interview View 50
Estate and Gift (706/709) Product Enhancements - Interview View 51
Tax Product Enhancements - Worksheet View 52
Individual (1040) Product Enhancements - Worksheet View 53
ProSystem fx Tax (SaaS)
2012-1.0
Release Notes
December 2012
Contents • 2
Partnership (1065) Product Enhancements - Worksheet View 68
Corporation (1120) Product Enhancements - Worksheet View 72
S Corporation (1120S) Product Enhancements - Worksheet View 80
Employee Benefit Plan (5500) Product Enhancements - Worksheet View 84
Fiduciary (1041) Product Enhancements - Worksheet View 85
Exempt (990) Product Enhancements - Worksheet View 86
Estate and Gift (706/709) Product Enhancements - Worksheet View 87
Issues Addressed 88
Correspondence Manager 88
Tax 88
Contact and Support InformationReturn to Table of Contents.
You can contact Customer Support at 1-877-977-9PFX (9739) or online at http://support.cch.com/suite.
The following Web site provides important information about all ProSystem fx Tax releases:
http://support.cch.com/Suite/ReleaseNotes/Tax
This site also includes a link to the ProSystem fx Suite Support Calendar and Windows compatibilityinformation with each ProSystem fx product area.
Please visit the http://support.cch.com/notes/appStatus.aspx Web page to view the current status of any ofour SaaS application. The Application Status Web page is updated every 15 minutes. You may visit at anytime, even when Support is closed.
Contact and Support Information • 3
Technology UpdatesReturn to Table of Contents.
Status of IRS Release of 2012 Government Forms and IRS Approach toPending LegislationWith tax season approaching while Congress remains in session considering legislation that impacts 2012 taxreturns, the IRS has begun releasing forms with flexibility to accommodate retroactive changes to 2012 taxlaw. The current IRS approach is to leave the forms in 2011 format, replacing the descriptions of lines withlapsed tax provisions with "Reserved." To date, Forms 1040, 1040A, 1040NR, 1040 Schedule A, 3468, 3800,4136, 6478, 6765, 8689, 8820, 8834, 8835, 8844, 8845, 8859, 8864, 8900, 8908, 8909, and 8910 containreserved fields. Additionally, the IRS has not officially released even draft versions of Forms 1065, 1120,1120S or 1041.
ProSystem fx Response to IRS ApproachGiven the current IRS approach, ProSystem fx is prepared as follows:
Draft, preliminary and final versions with "Reserved" fields will be released.All 2011 tax calculations remain in place regarding expired provisions, in anticipation thatsome or all will be extended retroactively by Congress. Reserved fields will be completed, ifapplicable.Current 2012 tax rates, limitations and thresholds are being used within these calculations,other than alternative minimum tax, which remains at 2011 levels.Any return containing a form with an amount on a Reserved line will include a diagnosticindicating that the return was prepared with an expired provision in use.Form 1065 pp. 1-5; Form 1120S pp. 1-5; Schedule D (1120,1120S, and 1065) will print withportions of the forms intentionally left blank. Calculations of these forms will remain visibleusing our current information regarding the 2012 tax calculations. These forms will be updatedas soon as drafts or final forms are released from the IRS. The IRS requires that only formsofficially posted on the IRS.gov Web site are available to the public so these versions are notofficial IRS versions.
This method allows us to be as prepared as possible for any late legislative changes. We continue to monitordaily both Congressional activity and the IRS approach to open items so that tax season opens as smoothly aspossible under the circumstances.
Electronic FilingElectronic filing for the following products is scheduled to be available in January 2013:
IndividualCorporationEmployee Benefit PlanFiduciaryPartnershipS CorporationExempt Organization
Technology Updates • 4
Electronic Filing Status SystemNew Filtering Options. You can now filter your view to exclude returns on extension, or to view onlyreturns with signature forms NOT received. To use these filters, check one of these boxes:
Exclude Returns on ExtensionShow Returns with Signature Forms Not Received
Return Delivery Receipt. We added a new status to the Electronic Filing Status System. For certainMichigan and Ohio cities, a receipt of delivery of the return to the city is received. To obtain an officialcity e-file acknowledgement, use the link for contact information in the provided Alert.
Authorized e-file Provider. The IRS no longer accepts Form 8633, Application to Participate in the IRS e-file Program. You must submit an online application to become an IRS e-file provider. See the IRS Web sitefor more information.
Search Results List. To provide more clarity, we changed the icons used in the Search Results List.
Not Accepted. The Rejected return icon name was changed to Not Accepted. This iconindicates that the return is either in a rejected or stopped status.Alert. If a return has a status of accepted, the alert contains information provided by thetaxing authority. If the return is in another status, the alert may contain information providedby CCH.
Search Results Columns. Changes to the columns include the following:
The DCN column was changed from a default column to an optional column.
Note: You will see this change after you select Save on the first tab in the View option menu.
Due Date was changed to Federal Due Date.
You can configure the columns that display in the Search Results List on the View Preferences page.
Alert Report. A new report has been added. View the Alert report by clicking the hyperlink next to theAlert indicator. The Alert report contains information provided by the taxing authority or CCH.
Extensions. To help you quickly differentiate between extensions and returns in the Electronic Filing StatusSystem, we now display Extensions in the Search Results List with a different row color.
For additional information on any of these features, see the ProSystem fx Tax User Guide or the ProSystemfx Electronic Filing Status System Help.
Tax PreparationStatus of Electronically Filed Returns. To allow users to view the status of the electronically filed returnfrom within the tax return, we have a new Electronic Filing Status column on the Upload returns to theElectronic Filing Status system dialog. This column displays the current electronic filing status of the returnsor extensions available for export.
We have also added this column to the Electronic Filing Status report. Please note that we will update thesecolumns only when you access the report or initiate an export; we will not update them after that pointuntil you reopen the return and access either the Export dialog or the Status report.
Group Diagnostics. We have now grouped Federal and State diagnostics by taxing authority based on thetree menu government view order. So within each severity type (caution, informational, etc.) you canquickly find the desired taxing authority.
Common Data Updates. This year, we have added more fields to the common client data that is sharedwith the ProSystem fx Tax. Common data now includes links for taxpayer’s and spouse’s email address,phone number and date deceased for all the applicable client types. We have also resolved the issue of
Technology Updates • 5
carrying the foreign province/zip code to the correct fields from the returns to the client types when theyare applied as common data.
Multi State Consolidated Group Tab. When a consolidated return contains two or more state consolidateddata, all the states and their subsidiaries will now be reflected in the Groups tab. This enhancement is onlyapplicable for the following States: Massachusetts Unitary (CC-MAUI), Michigan Unitary (MI-UBG1), andTexas Affiliated (TX-AFF1).
Link to Release Notes. We have added a new link to the release notes under the Web icon on the ReturnManager and Tax Preparation ribbons.
Electronic Filing Status Data in Return Manager. You may now view electronic filing status data withinthe Return Manager grid. Federal e-file Status and State e-file Status are available in the Most RecentlyUsed view as well as in the new view Current year e-file status, which also includes the columns FederalExtension Status and City e-file Status. The status data is summarized into the basic categories of Stopped,Rejected, Exception, Pending, Exported and Accepted. For multi-state returns, the system displays thehighest priority status. Status data is updated every 15 – 30 minutes.
New Quick Search Filters. New optional quick search filters are available to search for the electronicfiling status of the return. To add one of the new filters, click Add Filter at the bottom of the quick searchpane. Changes made to the filters will be retained the next time you access Return Manager.
FiduciaryPartial Grantor Trust (5 X 5 trust) – the use of Partial Grantor Trusts has become a widespreadestate planning device and the reporting of these types of trusts are now available withinProSystem fx, including applicable states.QFT – Qualified Funeral Trust - Trustees of pre-need funeral trusts who elect treatment of IRCSection 685 are now able to file Form 1041-QFT U.S. Income Tax Return for Qualified FuneralTrusts.Perpetual Care Funds IRC 642(i) - If you have a cemetery perpetual care funds, we now providefor the calculation of Form 1041, line 18 in accordance with IRC section 642(i) which allowsfor the deduction of $5 per gravesite for maintenance of cemetery property.
Return Configuration SetsElectronic Filing Options. Multiple enhancements have been made to the electronic filing options. Thedialogs are found at Dashboard > Configuration > Return Configuration Sets > return configuration sets >Electronic Filing Options. See the online Help for the carryover of particular fields from tax year 2011 totax year 2012 and for specific overrides on the returns in Tax Preparation.
The 2D barcode option has been moved from each specific product tab and it is now selectedon the Print Options dialog at Dashboard > Configuration > Return Configuration Sets > returnconfiguration sets > Print Options > Formatting and Print Options tab.A new option, Print the ERO name in the signature block of the 8879, has been added to theERO tab.A new option, Electronically file extensions, has been added to the tabs for Individual,Partnership, Corporation, S Corporation, Fiduciary, and Exempt.The option Electronic filing has been renamed to Electronically file return on all product tabsexcept Partnership.A new option, Suppress printing of taxpayer signature dates, has been added to the Individualtab.The drop-down selections for Transmittal/filing instructions paragraph on Individual andFiduciary tabs now reflect the 8879 option.
Technology Updates • 6
A new option for all tax products that ProSystem fx Tax electronically files allows the preparerto receive an email reminder regarding the status of the 8879. Select Send notification when8879 not received and specify when you want notification by entering the number of daysafter the return status was set to Ready to Release. There is also an option to have the emailsent to an alternate email address instead of the preparer.
Formatting and Print Options. These changes have been added to the dialog at Dashboard > Configuration> Return Configuration Sets > return configuration sets > Print Options > Return Print Options tab:
You can select to mask any or all of these fields: Social Security numbers, EmployerIdentification numbers, and bank account numbers. There is also a selection to show the lastfour digits when masking.To enable the selected masking features, the Mask box must be selected on the Print dialogwithin Tax Preparation at Application menu > Print > Print Entire Return or Print Preview. Fortax year 2011, the system will continue to mask all digits and data types.A new option, Suppress print of all extensions in the client copy, has been added to this tab.See the online Help for the carryover from tax year 2011 to tax year 2012.The 2D barcode option has been moved from each specific product tab of Electronic FilingOptions and it is now selected on this tab.
1040 Options. A new option, Default for 1099-B, has been added to Dashboard > Configuration > ReturnConfiguration Sets > return configuration sets > 1040/Individual Options. There is a drop-down menu fromwhich to select reporting of the 1099-B.
1120/1120S Options. The option Print total everywhere default amount worksheets has been removed asit only applies to tax years 2008 and prior (Dashboard > Configuration > Return Configuration Sets > returnconfiguration sets > 1120 & 1120S/Corporation Options).
Letters and Filing Instructions Information. See additional return configuration set updates to Letters andFiling Instructions under the Correspondence section below.
Miscellaneous Options - Reserved for Future Use 1 - 9. On the Dashboard > Configuration > ReturnConfiguration Sets > return configuration sets > Miscellaneous Options dialog, all Reserved for future usefields have been reset to their initial defaults of blank or unchecked. See online Help for the carryover fromtax year 2011 to tax year 2012 of specific fields that are now used instead of the Reserved for future usefields.
Staff ManagerStaff profile signer options. The following fields for signer information have been added. These fieldshave also been added to the Signature Block dialog in Dashboard > Configuration > Return Configuration Sets> return configuration sets > Signature Block.
Designation CodeJurisdictionLicense number
CorrespondenceNew Letter Types and Templates. Beginning with tax year 2012, the following two new letter types andtemplate are available in the Correspondence Manager library:
1065 Estimate Reminder Letters letter type1040C Transmittal letter type
New Return Configuration Set Options. The following two options were added to the Return ConfigurationSets > Correspondence > Letter Options window:
Technology Updates • 7
Include paragraph referencing IRS Revenue Procedure 2012-17 (1065 Return types only). Thisoption applies to 2012 tax years and higher. You can override this option in a return using theGeneral > Letters and Filing Instructions > General Letter Information Worksheet or InterviewForm 9, Box 42.Letters reflect paper filing instructions when electronic filing is disqualified. This optionapplies to tax years 2011 and higher. This option was previously Reserved 9 in tax year 2011. IfReserved 9 was previously selected, the new option will be selected by default.
If the corresponding field in the return has been entered, the system will use the setting from the return.See online Help for the carryover from tax year 2011 to tax year 2012 of specific fields that are now usedinstead of the Reserved for future use fields.
New 2012 1040 Individual Keywords in Correspondence Manager (Outside of a Return)
Keyword Keyword Library LocationFirst Name and Initial – Taxpayer General > Basic DataLast Name – Taxpayer General > Basic DataFirst Name and Initial – Spouse General > Basic DataLast Name – Spouse General > Basic DataPrepare Tax Equalization Miscellaneous > Tax EqualizationName(s) as shown on return Miscellaneous > Main FormCompany ID Miscellaneous > Tax EqualizationNet payment due taxpayer (company) Amounts > Tax EqualizationAmount Due Company Amounts > Tax EqualizationAmount to be included in Taxpayers 201X W-2 Amounts > Tax EqualizationC/O to 201X - Foreign Tax Credit - General Limitation - Actual Amounts > Tax EqualizationC/O to 201X - Foreign Tax Credit - Passive Limitation - Actual Amounts > Tax EqualizationC/O to 201X - Foreign Tax Credit - General Limitation -Hypothetical Amounts > Tax EqualizationC/O to 201X - Foreign Tax Credit - Passive Limitation - Hypothetical Amounts > Tax EqualizationC/O to 201X - Passive Losses - Actual Amounts > Tax EqualizationC/O to 201X - Passive Losses - Hypothetical Amounts > Tax EqualizationC/O to 201X - TentativeMinimum Tax Credit - Actual Amounts > Tax EqualizationC/O to 201X - TentativeMinimum Tax Credit - Hypothetical Amounts > Tax EqualizationC/O to 201X - Overpayment Applied - Actual Amounts > Tax EqualizationC/O to 201X - Overpayment Applied – Hypothetical Amounts > Tax EqualizationTotal Penalties - All Units Amounts > Federal > Main FormTotal Interest - All Units Amounts > Federal > Main FormTotal Underpayment Penalties - All Units Amounts > Federal > Main Form
Masking EIN Numbers for 5500 Keywords.You will be able to mask EIN numbers that are rendered from5500 keywords. Masking applies to Accountant, Client, and K-1 copy types for tax years 2011 and higher.
Resizing the Word Pane. Paragraphs will display up to 125 characters in the Paragraph Library for taxyears 2012 and higher. For prior years, if you edit a paragraph and save it as a custom paragraph, thelibrary will also display up to 125 characters when you resize the Word pane to the right.
Status Bar Layout. The status bar layout will now display the path for the selected or open paragraph.Paragraph text has been extended all the way to the end of the status bar and is no longer limited to 50characters.
DashboardClient Dashboard. ProSystem fx Suite firms will now have a consolidated location that will provide keyinformation for a client. The Client Dashboard will be accessible from the Dashboard or from ribbons locatedthroughout the products and will provide quick access to client demographic information (addresses, emails,phone numbers) as well as key financial data.
Technology Updates • 8
Practice InterfaceBilling Access. You can now add a shortcut to your Quick Access Toolbar in ProSystem fx Tax (SaaS) thatprovides direct access to the Client Summary view in Practice (SaaS) Billing.
Workstream InterfaceBatch Return and Project Linking. You can now link tax returns to Workstream projects in batches, ratherthan linking each return individually. This speeds up the rate at which you can link returns to projects, andensures that when you close a tax return, you receive the full benefit of the Workstream integration withyour preferred tax product.
Batch Client Linking. To facilitate batch return and project linking, you can now link clients in ProSystemfx Tax Client Manager to the clients in the ProSystem fx Suite Client Manager in a batch.
Windows 8 CompatibilityWith Release 2012-1.0, ProSystem fx Tax (SaaS) is compatible with Microsoft Windows 8 for 2012 taxreturns. Please refer to the CCH Compatibility Schedule for important information, as well as productrelease information for other ProSystem fx applications in addition to Tax, at this location:http://support.cch.com/supportedenvironments/operatingsystems.aspx.
Notes:
CCH will support 32-bit and 64-bit versions of Microsoft Windows 8 Professional and Enterpriseoperating systems.CCH will not support Microsoft Windows 8 Home versions, nor do we support touchscreenfunctionality.Windows RT operating system is not supported.We recommend you maintain a Windows 7, XP, or Vista workstation within your firm to runprior year versions of ProSystem fx software.
2011-5.2 Tax Updates
Corporation / S CorporationPhiladelphia Forms BIRT and BIRT-EZ are available for processing.
Technology Updates • 9
Product Updates
Individual (1040) Product UpdatesReturn to Table of Contents.
FederalForm 8697. Line 2c is blank when the net of line 2 column A, B and filing year is not zero.
Organizer - StatesUtah taxable refund amount on Organizer Form 13 equals Form TC-40 Line 39 minus Line 27.
California Electronic FilingForm 3885A, Line 7 can no longer be negative. This prevents a schema validation error.
WisconsinExtensions once created sometimes could not be removed from the return. This issue has been resolved.
Form 1 NPR Line 11 detail statement now correctly accounts for the presence of state if different suspendedlosses, and matches the total amount calculated on the government form.
When WI depreciation was less than Federal post 1986 depreciation, the negative adjustment was not madeto WI 6251 Line 19. This issue has been corrected.
Product Updates • 10
Partnership (1065) Product UpdatesReturn to Table of Contents.
There are no updates available with this release.
Product Updates • 11
Corporation (1120) Product UpdatesReturn to Table of Contents.
There are no updates available with this release.
Product Updates • 12
S Corporation (1120S) Product UpdatesReturn to Table of Contents.
New HampshireForm NH-1120, Page 1, Line 2(g), increase or decrease of net gain or loss on the sale of assets which have adifferent state basis from the tax basis reported on the federal return. This calculation has been revised.
Product Updates • 13
Fiduciary (1041) Product UpdatesReturn to Table of Contents.
There are no updates available with this release.
Product Updates • 14
Estate & Gift (706/709) Product UpdatesReturn to Table of Contents.
There are no updates available with this release.
Product Updates • 15
Exempt Organization (990) Product UpdatesReturn to Table of Contents.
There are no updates available with this release.
Product Updates • 16
Employee Benefit Plan (5500) Product UpdatesReturn to Table of Contents.
There are no updates available with this release.
Product Updates • 17
Tax Product Enhancements - Interview ViewClick one of the links below to read about the tax application updates included with release 2012.01000.
Individual (1040) Product Enhancements - Interview View
Partnership (1065) Product Enhancements - Interview View
Corporation (1120) Product Enhancements - Interview View
S Corporation (1120S) Product Enhancements - Interview View
Fiduciary (1041) Product Enhancements - Interview View
Employee Benefit Plan (5500) Product Enhancements - Interview View
Exempt (990) Product Enhancements - Interview View
Estate and Gift (706/709) Product Enhancements - Interview View
Tax Product Enhancements - Interview View • 18
Individual (1040) Product Enhancements - Interview ViewReturn to Table of Contents.
Federal
Interview Form 1 and 1AIn the 2013 system, fields will be available for taxpayer and spouse first name, middle initial, last name,and suffix. In this year's system, users will have the ability to define those fields manually. The 2012-2013Pro Forma program will use the manual entries first. If they are not present, logic will be present to make a"best guess".
So that the new input could be added in the same area as the existing name input, some fields have beenmoved from Interview Form 1 to Interview Form 1A.
Interview Form IRS 1099-INTA default change has been made to better serve the needs of our users. If tax-exempt interest has beenentered in Box 8 of the 1099-INT, it will be considered state taxable. This is the opposite of last year wherethe interest was considered state nontaxable.
The Consolidated Brokerage Statement is unchanged. The user continues to have input fields to explicitlystate if federal tax-exempt interest is either state taxable or state nontaxable.
Interview Form N-1, Box 33A default change has been made to reduce audit risk. Rather than including guaranteed payments from basiscalculation, we will exclude them. Pro Forma will be updated so existing returns will not require a changein the 2012 system.
To be consistent with the change above, a default change will occur to include guaranteed payments fromat-risk calculations.
Enhancements
Tax Equalization - Exclude Interest, Dividends, and Passthrough Income
Fields to "exclude from hypothetical calculation" have been added to the following:
Interview Form IRS 1099-INT, Box 144Interview Form IRS 1099-DIV, Box 160Interview Form CN-1, Box 117Interview Form CN-2, Box 65Interview Form IRS K-1 (1041), Box 361Interview Form IRS K-1 (1065), Box 762Interview Form IRS K-1 (1120S), Box 740
Note: The Large Partnership Passthrough worksheet will be updated at a later date.
Fields to "exclude resident foreign country income from hypothetical calculation" have been added to thefollowing:
Interview Form TE-1, Box 74Interview Form TE-51, Box 74
Tax Product Enhancements - Interview View • 19
Depletion Summary Grids
The worksheet view input for depletion properties and depletion production income and expenses has beenchanged to summary grids. These summary grids allow import, export, and sorting to occur.
Property numbers on the Property Production Income and Expense are required for matching purposes.
Depreciation Adjustments to Depletion
Fields for depreciation and state if different depreciation have been added to Interview Form E-8, Boxes 110and 119. These give the user more flexibility in defining depreciation related to depletion.
Calculation Time Added to Return Summary
The second page of the return summary now includes a line to indicate the time that the return wascalculated.
International ACH Transaction IAT / Diagnostic 21667
In the prior year, Interview Form BNK-1, Box 40 had a checkbox for "International ACH Transaction IAT".This has been changed to a picklist with the following options:
Blank (Default)Domestic AccountForeign Account
Leaving the question blank would operate as it did in prior years. Diagnostic 21667 would issue and thebanking information would carry through the return as a domestic account.
Selecting "Domestic Account" would suppress diagnostic 21667 and the banking information would carrythrough the return as a domestic account.
Selecting "Foreign Account" would suppress diagnostic 21667 and the banking information would carrythrough the return as a foreign account. State diagnostics would issue.
Pro Forma will change checked entries in 2011 to foreign accounts in 2012; 2011 blank entries will assumedomestic accounts with an accompanying preparer note.
Foreign Tax Credit (FTC) Carryback Diagnostics
Diagnostics have been added to alert the user that they may need to amend their return to reflect theforeign tax credit carryback.
Form 1116. A foreign tax credit carryback has been calculated in the amount of $&$ for thegeneral limitation income category. Foreign tax credit carryovers have been adjusted toreflect the carryback. The prior year return may need to be amended to reflect the foreign taxcredit carryback.
Form 1040-ES - Statement for Adjusted Gross Income
A statement has been added to provide the user additional detail in regards to Form 1040-ES, Line 1"Adjusted gross income you expect in 2013".
Return Configuration Sets - Additional Fields for Form 2848
Return configuration set fields will be added per preparer for the following:
Designation codeLicensing JurisdictionLicense/Bar or Enrollment Number
Overrides are available on Interview Form S-2, Boxes 95-97.
Tax Product Enhancements - Interview View • 20
Federal Elections - New Election for Section 1.1367(g)
Input has been added for this election. It may be found on Interview Form FE-5, Boxes 60 and 61.
Letters/Filing Instructions
Letters have been updated to support electronic filing of any state amended returns that may be added.
Conservation Expenses Calculation
Gross conservation expenses entered on Interview Form F-2, Box 32 will be multiplied by 25% to calculatenet conservation expenses.
An override for net conservation expenses is available when there is a gain on the sale of farm animals fromSchedule D or Form 4797. This override may be found on Interview Form F-2, Box 33.
Schedule J - Statement for Elected Farm Income
A statement has been added to provide the user additional detail in regards to Schedule J, Line 2a "Electedfarm income". This line contains an optimization, and the statement indicates how the program arrives atthe final number.
1099-G - Ability to Associate to Schedule F
Input has been added to associate a 1099-G to a Schedule F. Agricultural program payments entered onInterview Form IRS 1099-G, Box 67 will flow to Schedule F and/or Form 4835.
Form 1116 - Suppress Statements
An option has been added to suppress statements associated with Form 1116 and Form 1116AMT. This optionis present on Interview Form 5, Box 45.
Depreciation - Partial Distribution
A partial distribution of an asset may be made through an entry on Interview Form DP-1, Box 291. This boxmay be used to enter either a percentage or an amount. A value of less than 1 is considered a percentage,while a value of 1 or more is considered an amount.
When this field is used, a new asset will be created with applicable information included. Certain inputfields for the existing asset will be reduced accordingly.
Once the user makes the entry and attempts to leave the field, they will be alerted that input changes willbe made. Also, they will be made aware that the action can only be undone manually.
Additional information is available to the user within the partial distribution field's help screen.
Tax Product Enhancements - Interview View • 21
Depreciation - Diagnostic for ADS Assets
Diagnostic 30360 will no longer issue for each farm asset using a method of ADS (alternative depreciationsystem).
Like-Kind Exchanges to Form 2106
Assets attached to Form 2106 / Statement SBE may be a part of a like-kind exchange.
Form 8889 - HSA Contributions from W-2 Input
Form 8889, Lines 4 and 9 will now reference data entry from IRS W-2 > Box 12 code and amount fields.When a code of "R" is used for employer contributions to an Archer MSA, the amount will be included in thecalculation of Form 8889, Line 4. When a code of "W" is used for employer contributions to a HSA, theamount will be included in the calculation of Form 8889, Line 9.
Excess Contributions to Coverdell ESAs
Input has been added to calculate a penalty for excess contributions to Coverdell ESAs on Interview Form T-7, Boxes 50 through 53.
In order to calculate each contributor's limit for the year, the contributor's filing status and modified AGImust be entered. If the amount of contribution made by that contributor exceeds their contribution limit, apenalty is calculated.
Additional information is available in the help screens.
Shareholder Debt Basis Calculation
Input has been added to compute the shareholder's debt basis. This input may be found on Interview Form N-1, Boxes 115 through 134.
Page 2 of the S Corporation Basis Worksheet in the government menu indicates how the total shareholderstock and debt basis is calculated.
Input Consistency for 1099 Questions
To promote consistency across systems, the 1099 questions changed on Interview Form C-3, Interview FormE-1 , and Interview Form F-1. The questions now state:
If you made payments during the tax year that would require you to file Form(s) 1099If you filed, or will file all required Form(s) 1099
A checkmark is a valid entry.
California Source Option
New options have been added Interview Form K-1, Box 70, Interview Form IRS K-1 (1065), Box 92,Interview Form IRS K-1 (1120S), Box 67, Interview Form IRS K-1 (1041), Box 67. The first two options listedbelow are new:
Amounts in state column are CA all-sources amountsUse state amounts for CA source and CA all-sourcesUse state amounts for CA source and fed amounts for CA all-sources (default)
As the name suggests, these options will only change the California return. A different number for can nowbe entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts.
Tax Product Enhancements - Interview View • 22
Interview Form ST-1
Input has been added at the federal level to allow state information to be overridden.
Form and Law Changes
1099-INT
The IRS released a new 1099-INT. The state field is now present in Box 11 and the program has beenchanged to match. This small change may catch some preparers familiar with our system off-guard. Thestate code is no longer at the top of the form as many users will expect.
In addition, the IRS added Box 12 for state ID, and Box 13 for state tax withheld. Input fields were availablefor this data in the prior year and were moved to match the new 1099-INT.
1099-DIV
The IRS also released a new 1099-DIV, with the same changes to state, state ID, and state tax withheld.
Two new fields have also been added to the 1099-DIV by the IRS: exempt-interest dividends (Box 10) andspecified private activity bond interest dividends.
1099-K
A new source document was made available by the IRS, the 1099-K. It is available on Interview Form IRS1099-K.
The 1099-K may be associated to a business, farm, or rent / royalty through input. If not tied to any ofthese places, payments entered here will flow to Form 1040, Line 21. The IRS has indicated that they willnot have separate lines on the Schedule C, Schedule F, and Schedule E for "merchant card and third partypayments". Amounts will be included in the gross number with a supporting statement.
Checklists
For Form 8863 (Education Credits) and Form 8867 (Paid Preparer's Earned Income Credit Checklist), the IRSwill be requiring more information to determine eligibility to take certain credits. Input fields will be addedas needed.
Form 8915-RA Removed
Form 8915-RA (Qualified Hurricane Retirement Plan Distributions and Repayments) has been removed fromthe system. Form 8930 (Qualified Disaster Recovery Assistance Retirement Plan Distribution) will remain.
Bank Products
No longer supported.
Additional Field Information
Moved FieldsWe attempted to synchronize interview form fields so as to better match the flow of the government form.
New Fields
Interview Form 5
Interview Form 5, Box 45, Form 1116 supporting statements
Tax Product Enhancements - Interview View • 23
Interview Form 9
Interview Form 9, Box 70, Homebuyer repayment
A Series
Interview Form A-2, Box 131, Itemized receiptsInterview Form A-5, Box 93, Cash, 50%, 2011 amountInterview Form A-5, Box 99, Cash, 30%, 2011 amountInterview Form A-5, Box 105, Appreciated property, 30%, 2011 amountInterview Form A-5, Box 111, Appreciated property, 20%, 2011 amountInterview Form A-5, Box 117, Conservation real property, 100%, 2011 amountInterview Form A-5, Box 147, Conservation real property, 100%, 2011 AMT amountInterview Form A-5, Box 123, Conservation real property, 50%, 2011 amountInterview Form A-5, Box 154, Conservation real property, 50%, 2011 AMT amountInterview Form A-6, Box 130, Vehicle identification number
CN Series
Interview Form CN-1, Box 43, Recipient foreign country codeInterview Form CN-1, Box 41, Recipient foreign province/countyInterview Form CN-2, Box 65, Exclude from hypothetical calculation fieldInterview Form CN-1, Box 117, Exclude from hypothetical calculation fieldInterview Form D-10, Box 30, TSJ
Note: This replaces the FSO field.
DP Series
Interview Form DP-2, Box 227, Kansas first year deductionInterview Form DP-2, Box 228, Kansas deductionInterview Form DP-2, Box 229, Date ceased to qualify for Kansas deductionInterview Form DP-9, Box 51, Kansas first year deduction option
E Series
Interview Form E-5, Box 77, Hypothetical AMT federal passive activity loss carryover
Interview Form EF-1
Interview Form EF-1, Box 42, Entity number (TX only) allows payment due to be applied to aparticular entityInterview Form EF-1, Box 59, State use is available to MI-DTW payment voucher usage
Interview Form EF-PDF-1
Interview Form EF-PDF-1, Box 170, Option to suppress QEPDInterview Form EF-PDF-1, Box 171, Option to suppress 1065 K-1 basis limitationInterview Form EF-PDF-1, Box 172, Option to suppress 1120S K-1 basis limitationInterview Form EF-PDF-1, Box 173, Option to suppress sale of home
Tax Product Enhancements - Interview View • 24
EXT Series
Interview Form EXT-1, Box 73, State if differentInterview Form EXT-1, Box 74, ZIP or postal code if different
F Series
Interview Form F-2, Box 32, Conservation expenses - gross
Interview Form FE-5
Interview Form FE-5, Box 60, S Corporation nameInterview Form FE-5, Box 61, Employer identification number
Interview Form IRS 1099-MISC
Interview Form IRS 1099-MISC, Box 55, Recipient foreign country codeInterview Form IRS 1099-MISC, Box 56, Recipient foreign province/state/countyInterview Form IRS 1099-MISC, Box 115, New York City tax withholdingInterview Form IRS 1099-MISC, Box 116, Yonkers tax withholding
Interview Form IRS 1099-G
Interview Form IRS 1099-G, Box 53, Recipient foreign country codeInterview Form IRS 1099-G, Box 54, Recipient foreign province/state/county
Interview Form IRS 1099-K
Interview Form IRS 1099-K, All fields
Interview Form IRS 1099-INT
Interview Form IRS 1099-INT, Box 54, Recipient stateInterview Form IRS 1099-INT, Box 55, Recipient ZIPInterview Form IRS 1099-INT, Box 56, Recipient foreign country codeInterview Form IRS 1099-INT, Box 57, Recipient foreign province/state/countyInterview Form IRS 1099-INT, Box 144, Exclude from hypothetical calculation
Interview Form IRS 1099-DIV
Interview Form IRS 1099-DIV, Box 54, Recipient stateInterview Form IRS 1099-DIV, Box 55, Recipient ZIPInterview Form IRS 1099-DIV, Box 56, Recipient foreign country codeInterview Form IRS 1099-DIV, Box 57, Recipient foreign province/state/countyInterview Form IRS 1099-DIV, Box 83, Exempt-interest dividendsInterview Form IRS 1099-DIV, Box 84, Specified private activity bond interest dividendsInterview Form IRS 1099-DIV, Box 160, Exclude from hypothetical calculation
P Series
Interview Form P-28, Box 60, 2011 windows expenseInterview Form P-28, Box 55, 2011 nonbusiness energy creditInterview Form P-6, Box 82, Taxes reclassified under high tax kickout
Tax Product Enhancements - Interview View • 25
T Series
Interview Form T-7, Box 50, Name of contributorInterview Form T-7, Box 51, Filing status of contributorInterview Form T-7, Box 52, Amount of contributionInterview Form T-7, Box 53, Contributor's modified AGI
TE Series
Interview Form TE-1, Box 74, Exclude resident foreign country income from hypotheticalcalculationInterview Form TE-1, Box 75, Resident foreign country code - overrideInterview Form TE-51 through Interview Form TE-54, All fields
Deleted Fields
Interview Form 9
Interview Form 9, Box 69, Advance earned income creditInterview Form 9, Box 71, Form 5405, Line 16
Interview Form 17
Interview Form 17, Box 50, Bank product use and disclosure option
Interview Form 26
Interview Form 26, Box 137, 8938 codeInterview Form 26, Box 138, 8938 name
A Series
Interview Form A-10, Box 85, Business miles after 6/30
C Series
Not small businessInterview Form C-3, Box 83, 1099 blankInterview Form C-1, Box 68, Gross amount of merchant card / third party network paymentsreported on Form 1099-KInterview Form C-3, Box 80, 8938 codeInterview Form C-3, Box 81, 8938 name
D Series
Interview Form D-7, Box 43, 8938 codeInterview Form D-7, Box 44, 8938 entityInterview Form D-10, Box 42, FSO
Note: This was replaced by the TSJ field.
Tax Product Enhancements - Interview View • 26
DP Series
Interview Form DP-3, Box 107, Total business miles after 6/30Interview Form DP-5, Box 36, TypeInterview Form DP-5, Box 52, Carryover of disallowed deduction from last year for realproperty
E Series
Interview Form E-1, Box 53, Merchant card and third party payments - rentInterview Form E-1, Box 54, Merchant card and third party payments - royaltyInterview Form E-1, Box 55, Cash backInterview Form E-1, Box 56, Leave 1099 questions blankInterview Form E-2, Box 41, 8938 codeInterview Form E-2, Box 42, 8938 name
EF Series
Interview Form EF-3, Box 30, Bank product will be applied for with River City Bank for thisreturnInterview Form EF-3, Box 31, Bank product application also applies to the home state returnInterview Form EF-3, Box 32, Confirm that you have received the proper consent for disclosureof taxpayer information to the bank
EXP Series
Interview Form EXP-1, Box 106, 8938 codeInterview Form EXP-3, Box 107, 8938 name
F Series
Interview Form F-1, Box 53, Leave 1099 questions blankInterview Form F-3, Box 64, 8938 codeInterview Form F-3, Box 65, 8938 name
IRS K Series
Interview Form IRS K-1 (1041), Box 68, Small business code
M Series
Interview Form M-23, Box 78, Basis in rollovers from qualified retirement plans for prior yearsInterview Form M-23, Box 79, Amount from 2010 Form 8606, Line 20aInterview Form M-23, Box 81, Amount from 2010 Form 8606, Line 25a for rollovers to Roth IRAsInterview Form M-23, Box 83, Basis in Roth IRA conversions prior to 2010Interview Form M-23, Box 76, Populate Part III if no distributions from Roth IRA fieldInterview Form M-23, Box 90, Amount of distribution allocable to in-plan Roth rollover within 5year of rolloverInterview Form M-23, Box 91, Amount from 2010 designated Roth Account Income AccelerationInterview Form M-23, Box 92, Amount from 2010 Form 8606, Line 25a for an in-plan rollover toRoth account
Tax Product Enhancements - Interview View • 27
Interview Form M-22, Box 57, Populate Part IV if no distributionInterview Form M-26, All fields
P Series
Interview Form P-12, Box 101, Foreign countryInterview Form P-12, Box 102, Foreign province / countyInterview Form P-21, Box 140, Small business codeInterview Form P-31, Box 44, Small business codeInterview Form P-31, Box 57, Small business codeInterview Form P-31, Box 67, Small business codeInterview Form P-32, Box 170, Small business code
STMT Series
Interview Form STMT-1, Box 88, Making work pay for taxpayerInterview Form STMT-1, Box 89, Making work pay for spouseInterview STMT-4, Boxes 30 through 41, All fieldsInterview STMT-4, Boxes 45 through 68, All fields
T Series
Interview Form T-20, Box 130, E-file Pro FormaInterview Form T-20, Box 131, E-file explanation for unreported tip income
Efile 1040
90-22.1
Mandated starting July 2013. Expected delivery Spring 2013
State efile
Electronic filing of returns: adding TXElectronic filing of amended returns: NY onlyElectronic filing of estimates: KSElectronic filing of extensions: adding KS, MD, TX
State
Nonresident and Part Year State Overrides Interview Form ST-1
A new feature allows the prorating of income between states based on percentages entered. A single, globalpercent can be used, or each income item can be prorated based on percent or amount. Thepercent/amount is applied to the total per income item, not to the underlying detail.
Limitations:
Not all states follow the Federal return to the letterNot all states allow efile without the detail available
Alabama
Added foreign employer address overrides to Interview Form AL1, Box 56-58 and 64-66
New donations to Interview Form AL2, Box 72-73
Tax Product Enhancements - Interview View • 28
California
New options have been added to Interview Form K-1, Box 70, and Interview Form IRS K-1 (1065), Box 92,Interview Form IRS K-1 (1120S), Box 67, Interview Form IRS K-1 (1041), Box 67. The first two options listedbelow are new:
Amounts in state column are CA all-sources amountsUse state amounts for CA source and CA all-sourcesUse state amounts for CA source and fed amounts for CA all-sources (default)
As the name suggests, these options will only change the California return. A different number for can nowbe entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts.
Form CA 568 now allows suppression of Schedule A/B and Schedule K. New boxes have been added toInterview Form CA26, Boxes 92 and 93.
Delaware
Added interactive diagnostic functionality
Hawaii
Added Form HI N-109, PG1 and PG2. This is for the carryforward and carryback of a Hawaii NOL. Input is onInterview Form HI-16
MeF (modernized electronic filing) is available for 2012 returns.
Indiana
Schedule TCSP-40, Twenty-First Century Scholars Program Credit
Renter’s Deduction input modified to allow separate input boxes on Interview Form IN3, Boxes 67-69, 71-73,78-80, and 82-84.
Interview Form IN4, Boxes 70-72, Homeschool Deduction
Interview Form IN11, Boxes 64-117, Domestic production activities field through Certain trade or businessdeductions based on employment of unauthorized alien field
Interview Form IN11, Boxes 144-149, National Guard and reserve component member’s deduction fieldthrough Nonresident military spouse earned income deduction field
Kansas
Electronic filing of estimated taxes and extension payments only if direct debit input is present. Not allowedin batch electronic filing.
Form K-64, Business and Job Development Credit removed due to expiration.
Form K-89, Rural Opportunity Zone Credit (e-filing only) added.
Schedule K-120EX, Expensing Deduction. A one-time deduction is available to Kansas businesses includingsole proprietors for machinery and equipment purchased in the year that it is placed in service in Kansas.The expensing deduction must qualify with the IRS under IRC Section 168: Accelerated cost recoverysystem.
Form K-40, Line 39 – Kansas Hometown Heroes fund: All contributions are used solely for the purpose ofadvocating and assisting Kansas Veterans, dependents and survivors ensuring they receive all federal andstate benefits they have earned. Enter on Line 39 the amount you wish to contribute to this fund (must be $1or more).
Tax Product Enhancements - Interview View • 29
Massachusetts
Installed the ability to have multiple entities of Form M-1310 "Statement to Claimant of Refund" tied to thefederal occurrence number on Interview Form MA20, Box 33.
Michigan
Form MI-4884, Pension Schedule
Form MI-4973, Pension Continuation Schedule
Interview Form MI2, Box 84, Special Olympics field
Interview Form MI3, Box 71, Gifts or expenses paid on your behalf field
Interview Form MI4, Box 47, Taxable value of homestead includes unoccupied farmland classified asagricultural field
Interview Form MI8, Box 76 , Domestic production activities deduction field
Interview Form MI12, Boxes 49, 53, 55, 57, and 70, Additional Email Address, Additional Telephone Number,Additional Fax Number, Additional Contact Name, and Grant unlimited authorization fields
Interview Form MI13, Box 67, Small business investment tax credit field
Michigan – Michigan Cities
New input for additional electronic filing information for W-2’s on Interview Form DTW9.
New input for Partnership or S Corporation taxes paid on Interview Form DTW4
Missouri
New checkbox for amounts “Carried Forward” for Miscellaneous Tax credits on Interview Form MO8, Box43.
Adding Form MO-NJD – Small Business Deduction for New Jobs.
Montana
New input on Interview Form MT1, Box 42 for check box for main form to not discuss return with yourspouse
Nebraska
Add NR/PY Schedule E state source statement
Added interactive diagnostic functionality
New Hampshire
Letters and Return Summary now produce for NH–SMLLC returns
New input on Business Tax Returns Interview Form NH1, Boxes 90-92
New input on Single Member LLC Interview Form NH11, Boxes 90-92
New Jersey
There are 3 new contribution codes allowed on Interview Form NJ1, Box 37
Created output forms for the NJK1P/NJK1S that were previously only for electronic filing purposes. Theforms only print with the accountant copy of the return.
The 2D barcode is now mandatory, with more forms impacted.
Tax Product Enhancements - Interview View • 30
New York Electronic Filing
MeF is available for 2012 PIT returns.
New Mexico
New Mexico has added 3 new credits for 2012 on Interview Form NM8, Boxes 57, 74, 75
North Carolina
MeF is available for 2012 returns.
Form NC-478A is now obsolete and has been removed.
Ohio – Ohio Cities
Toledo. A primary source of income can be selected. Aggregate losses from income sources other than theprimary source will be suspended. This option is activated by entering a code on Interview Form OHC7, Box63. Valid entries are: W - Wage, S - Self-employment, E - Rental, M - Miscellaneous. Suspended losses fromprior years may also be entered Interview Form OHC7, Boxes 80-85.
All Cities. Credit for taxes paid overrides are now provided on Interview Form OHC8, Boxes 50, 60-64.These overrides allow the preparer to override the amounts used in credit calculation on a per city basis. Anoption has also been added to limit the credit to the amount of withholding and direct payments if less thanthe calculated tax.
Suspended losses may be entered on Interview Form OHC9, Boxes 90-93 on a per entity basis.
Oklahoma
Oklahoma has added 6 new contributions this year on Interview Form OK3, Boxes 74-79
Oregon
Multnomah has mandated 2D barcodes for 2012.
Oregon has added direct deposit for its 529 College Savings Plan on Interview Form OR1, Boxes 85-92.
Pennsylvania
Added new Form PA 40-X on Interview Form PA-25
Add ability to electronically file the spouse version
Pennsylvania Cities (PGH obsolete)
In accordance with PA Act 32, the Pittsburgh City/School District and Mount Oliver individual earned incometax returns are prepared using the Pennsylvania Cities product; there is no longer a separate product forPittsburgh available through ProSystem fx for 2012. Pertinent information entered through the 2011Pittsburgh product will pro forma/roll forward into the 2012 Pennsylvania Cities product as a result.
Utah
Interview Form UT3, Box 36: Added input for gold and silver coin sale credit.
Interview Form UT4, Box 43: Added input for veteran employment tax credit.
West Virginia
Schedule H, Certification of Permanent and Total Disability input modified to allow separate input boxes forthe Physician’s address, city, state, and ZIP code on Interview Form WV1, Boxes 88-91.
Tax Product Enhancements - Interview View • 31
Partnership (1065) Product Enhancements - Interview ViewReturn to Table of Contents.
Schedule K-1, Federal and State Schedule K-1’s are now overrideable from Worksheet input
K-1’s at the Federal and State level can be overridden on Worksheet Federal > Partners > Federal/StateSchedule K-1 Overrides. This new summary grid allows the user to import from an excel spreadsheet formore efficient entry of Schedule K-1 partner data.
Schedule K-1, Option to Print Partner’s Name Instead of Partner Number on Top of the FederalSchedule K-1
Input is now available, to request the partner name to print on top of the Schedule K-1 instead of thepartner number on Interview Form 2, Box 47 (Worksheet Federal > General > Return Options > ProcessingOptions > X to print partner name rather than number on Schedule K-1).
Schedule K, Option to create Schedule K based upon Schedule K-1 overrides
An option is available to complete Federal Schedule K with the Schedule K-1 override entries. UseWorksheet Federal > Partners > General Options > Schedule K-1 Print Options > Calculate reverse Schedule Kfrom K-1 override.
Schedule K-1 Multiple Activity, Schedule of Activities Alternative
A new summary grid is available to import activity information for Schedule K-1 support from Excel. UseWorksheet Federal > Partners > Federal/CA Alternative K-1 Activity Schedule Import.
Passthrough Activities, An Export Summary Grid is added for Passthrough Activity Data
An export summary grid is now available to provide a spreadsheet to move passthrough activity level data tothe following systems: 1040, 1041.
Passthrough, IRS K-1 Input Format
A new input method is added for passthrough. The IRS K-1 format is available on Interview Form IRS K1P(Worksheet Federal > Income/Deductions > Partnership Passthrough) and IRS K1F (Worksheet Federal >Income/Deductions > Fiduciary Passthrough).
Alternative Method for Entering Federal Special Allocations in Worksheet View
New worksheets are available to enter Special Allocations for Federal allocable items. These worksheets usethe allocable item description as opposed to the allocation codes. This method of allocation is available inWorksheet Federal > Partners.
Depletion
Summary grids are available for Property, Well and Depreciation on Worksheet Federal > Income/Deductions> Depletion > Property and Cost Depletion; Property Production Income and Expenses; Depletion Property/Overhead Depreciation and Amortization.
Depletion, Depreciation Adjustment
Well level depreciation may be adjusted on Interview Form E-2, Boxes 130 and 139 (Worksheet Federal >Income/Deductions > Depletion > Property Production Income and Expenses > Depreciation; Depreciation –State (if different).
Tax Product Enhancements - Interview View • 32
Depletion, Option to Produce an Alternative Depletion Schedule that uses a Property ID CodeInstead of a Property Description
An option is available to produce the Schedule of Mineral Interests – Summary using the Property ID Codeinstead of the Property description on Interview Form E-2, Box 109 along with Interview Form 2, Box 45(Worksheet Federal > Income/Deductions > Depletion > Property and Cost Depletion > Property ID Codealong with Worksheet Federal > General > Return Options > Processing Options > Option to SuppressDepletion Schedules).
Depletion
The partial barrel calculation is added which allows marginal barrels to be taken first.
Depletion Property Summary Grid Export
A grid is added to the “Export“ tab for depletion. This data will be a summary of the property information.It will populate with the data from the Schedule of Mineral Interest Properties. It can be exported to anExcel spreadsheet.
Partner Basis
New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-1, Boxes 36and 110 (Worksheet Federal > Partners > Partner Basis > Partner Basis Options > Include reduction ofliabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > Partner Basis Information >Include reduction of liabilities in adjusted basis) for the Partner Basis Worksheet.
New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-3, Boxes 37and 113 (Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Options > Include AMT reductionof liabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > AMT Partner BasisInformation > Include AMT reduction of liabilities in adjusted basis) for the AMT Partner Basis Worksheet.
New input is available for loans to partners on Interview Form PB-1, Box 111 (Worksheet Federal > Partners> Partner Basis > Partner Basis Information > Loan to partner) for the Partner Basis Worksheet.
New input is available for loans to partner on Interview Form PB-3, Box 114 (Worksheet Federal > Partners >Partner Basis > AMT Partner Basis Information > Loan to partner) for the AMT Partner Basis Worksheet.
New input is available for loans from partner on Interview Form PB-1, Box 112 (Worksheet Federal >Partners > Partner Basis > Partner Basis Information > Loan from partner) for the Partner Basis Worksheet.
New input is available for loans from partner on Interview Form PB-3, Box 115 (Worksheet Federal >Partners > Partner Basis > Partner Basis Information > Loan from partner) for the AMT Partner BasisWorksheet.
Form 2848 - Power of Attorney and Declaration of Representative/Form 8821, Tax InformationAuthorization
Return configuration sets now contains fields for designation code, licensing jurisdiction, and license/bar orenrollment number. Overrides are available on Interview Form O-12, Boxes 110 through 112 (WorksheetFederal > Other > 2848 – Power of Attorney > Representative(s)/Appointee Individuals).
Form 2848 is now prepared from entries on Interview Form O-12. Form 8821 is now prepared from entries onInterview Form O-12A.
Form 8949, Sales and Other Dispositions of Capital Assets
Added and available for processing.
Tax Product Enhancements - Interview View • 33
Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships
Form 8865 may now be prepared in one return, and accessed and filed from other returns. This featureapplies to the Individual, Partnership, Corporation, S Corporation, and Exempt Organization systems.
In addition, a Form 8865 version of the following forms is prepared: Form 3468, Form 4562, Form 4797,Form 8825, and Schedule F.
State Returns
State Schedule K-1 Overrides
State level Schedule K-1s may be overridden on Worksheet Federal > Partners > Federal/State Schedule K-1Overrides.
State Schedule K-1 Overrides Reconciliation
A reconciliation of any State Schedule K-1 overrides entered is produced to tie the override numbers to thestate Schedule K-1.
Estimate Reminder Letters Added for States and Cities that have Estimates
Estimate reminder letters for states and cities may be requested on Interview Form 9, Box 40 (WorksheetFederal > General > Letters and Filing Instructions > General Letter Information > Estimate reminder letter).The Dashboard > / Return configuration sets > return configuration set > Print option is also available.
State K-1 Export to 1040 is expanded to Arizona, Iowa, Nebraska, North Dakota, and Utah
Common State Tab in Worksheet is Expanded for Adjustments to Federal Income and ScheduleK Overrides
Worksheet Federal > Common State
Arizona
Form 338, Credit for Investment in Qualified Small Businesses is added and available for processing.
California
Form 592, Partner/Member information is now in a summary grid format for Worksheet input.
Schedule K-1 Multiple Activity, Schedule of Activities Alternative. A new summary grid is available toimport activity information for Schedule K-1 (565) support from Excel. Use Worksheet Federal > Partners >Federal/CA Alternative K-1 Activity Schedule Import.
Illinois
Electronic filing is available.
Indiana
Form WH-18, Information is now in a summary grid format for Worksheet input.
Maine
Form 1065ME and Schedule PSI are obsolete. New Forms 941P-ME and 941P-PV-ME are used for partnershipreturns this year.
Tax Product Enhancements - Interview View • 34
Maryland
Schedule K-1 from a Passthrough, Input is added for a Maryland partnership that had taxes paid on theirbehalf from a passthrough to be able to include the K-1 from that passthrough in the electronic file. UseInterview Forms MD16 and MD17 (Worksheet Maryland > General > Schedule K-1 Information fromPassthrough, Electronic Filing).
New Hampshire
Combined Group Processing is available.
Pennsylvania
Form REV-774, Assignment of Tax Credit is added and prepared from entries on Interview Form PA20(Worksheet Pennsylvania > Corporate Tax Report > General > Assignment of Tax Credits).
Rhode Island
Form RI 1096V, Passthrough Withholding Payment Voucher is added and is available for payment ofpassthrough withholding.
Tennessee
Form FAE 170, Schedule G is now completed when the Federal 1065 Schedule L is not required.
Tax Product Enhancements - Interview View • 35
Corporation (1120) Product Enhancements - Interview ViewReturn to Table of Contents.
Federal
Schedule M-3 (Form 1120)
55 new interactive Schedule M-3 diagnostics have been added.
Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line.
Form 1118
Interest and dividends now can be automatically carried to Form 1118 based on detail entries onIncome/Deductions > Interest or Dividend (Interview Forms B-1 and B-2.) Form 1118 will be automaticallycreated from these entries for income category “N” (Passive income) and “A” (General income).
Form 1120-F
Schedule W on page 7 has been added to support the computation of overpayment resulting from taxdeducted and withheld under Chapter 3 on Line 8b, page 1.
Form 4626
Statement of “AMT Domestic Production Activities Deduction (DPAD) Adjustment” will be produced tosupport the AMTDPAD adjustment included in Line 2o. The detailed statement will be produced to supportLine 4d for net positive ACE adjustment from prior years.
Form 5452
A new worksheet for figuring current year earnings and profits has been added.
Form 6765
A new election has been added where you can elect to not reduce the R&D credit and also to not carry thecredit to other deductions on page 1 of the return.
Form 8810
A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list eachmember of the specified aggregate group.
Form 8827
You can now enter year by year prior year minimum tax carryover detail on Credits > 8827 > Prior YearMinimum Tax Carryover (Interview Form A-5) with type “M.” Section 382 limitation capability also has beenadded. We refer to the prior year carryover entered in the “Alternative minimum tax from prior year Form4626” and “Minimum tax credit carryforward” fields as summary entries. When either one of these summaryentries and new carryover detail entries are present, the summary entries will override Lines 1 and 2 ofForm 8827 and detail entries will not carry to Lines 1 and 2 but will always carry to Lines 8a and 8b.Whenever detailed entries are present, Detailed Carryover Report to Next Year will always be produced.
Controlled Group Credit Summary
This summary form has been added for the credits that can be allocated between controlled group members.The allocated credits carry automatically from Summary form to the appropriate credit forms.
Tax Product Enhancements - Interview View • 36
Tax Balance Summary
This form is designed to be a one glance check to insure major balances and tie-ins are in agreement. TheTax Balance Summary will only print in the accountant’s copy.
New State Adjustment Category Added to Worksheet View
This new category allows access to every state’s adjustment without navigating to each individual state. Itis accessed from federal level. There is no extra or less input data than the existing ones at the state level.If data is entered here, state menu will also highlight.
Return Type Error Message for Incomplete Input
Non-1120 (1120-PC, 1120-L etc) returns require two entries to generate. The first entry is the return codeon General > Basic (Interview Form 1) and the second one is the mandatory entry on the worksheet orinterview form specific to that return type. If an entry is made on General > Basic (Interview Form 1) andno corresponding second entry is on the return specific interview form, an error message will now begenerated.
NOL Carryover
2012 will be the first year the 20 year NOL carryover period will have an affect on the program. In the past,1997 NOL would exceed the old 15 year carryover period and the program would have ignored it. For NOLoriginating in a tax year beginning after August 5, 1997 can be carried over 20 years.
Calculation History
A new Calculation History report is informational that shows the results of the prior two calculations of thetax return. It is located on the federal menu following Form 1120.
State Codes
Input for “State codes” has been changed to display only US states plus “XX” and “FC.”
1099 Questions
Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data >Miscellaneous Information (Interview Form 4). Note that this input has been standardized across all systemsand both questions are handled in the same way in every system.
Schedule M-3 Option
A new option to leave Schedule M-3 and Schedule B blank when the corporation is a member of aconsolidated return is available at Sch L/M > General and Net Income (Loss) Reconciliation (Interview Form4). This option applies to Forms 1120, 1120-PC and 1120-L.
Suppress Statements
A new section “Suppress Printing of Statements” has been added to General > Return Options (InterviewForm 4). You can now selectively suppress various statements from printing in return.
Mailsheets
Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheetsaddresses.
Tax Product Enhancements - Interview View • 37
NOL and Carryovers
You can now enter the detailed foreign tax credit carryover information with type ‘F’ forregular tax and type “FA” for alternative minimum tax. The carryover amount will carry toForm 1118, page 2, Schedule B, part II, Line 5.You can now enter year by year prior year minimum tax carryover detail with type “M.”You can now enter year by year net positive ACE adjustments from prior years with type “AC.”You can now enter multiple section 382 limits for NOL and AMT NOL carryover. Previously itwas limited to just one section 382 limitation. Section 382 limit also is expanded to GeneralBusiness Credit and Credit for Prior Year Minimum Tax. The multiple section 382 carryoverswill be grouped as one on the Carryover Data to Next Year report. This new input is on (Federal> Alternative Minimum Tax > Net Positive Ace Adjustment from Prior Years (Interview Form 5).
Depreciation
New code 19 for “Mark-to-Market” has been added for Schedule M-3 purposes.New column for “Partial Disposition” has been added.Input field “Suppress automatic book adjustment” has been added. When this option is present,we assume tax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustmentfor depreciation will be made.
Rents
New column for “X if Direct Expense” has been added.
Royalty
Input fields for “X to exclude from quantity limit”, “Property ID code”, “Depreciation”, and “Depreciation -state if different” have been added.
Extensions
New input field “Extension message to print at the top of extension form” has been added.
Foreign Returns
Input for attaching Form 8858 to Forms 1120, 5471 and 8865 has been condensed into one set of forms. UseForeign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 to anotherreturn type.
IRS Schedule K-1 Facsimilie View Forms
New Worksheets and Interview forms are available for IRS K-1 facsimilies. Enter information on these IRS K-1 interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. Theseforms are new K-1 format for passthroughs and in addition to older format.
General State
New columns have been added for “K-1 Reconciliation Print Code“ and “X NOT to Pro Forma.”
Foreign
Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have beenadded to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC).
2 Year Comparison
We will now display the Effective and Marginal tax rates for current and prior year.
Tax Product Enhancements - Interview View • 38
Form 6252
We will now calculate and display cumulative totals for all columns on 6252, page 2.
New Insurance Election
You can select to print the Section 831(b) election in Insurance > 1120-PC > Taxable Income Under Section834 (Interview Form PC-3).
Return Summary
The second page of the return summary now includes a line to indicate the time the return was calculated.
Consolidated/Combined Returns
Consolidated Tax Balance Summary
A new workflow tool where you can see separate companies “out of balance” which causes the consolidatedreturn to be out of balance. You can view each member company’s tax balance summary from theconsolidated return. You also can quickly identify if one member company is filing a Schedule M-1 whenSchedule M-3 is required at the consolidated level.
Consolidated Option “Accumulate Prior Year AMT Credit Carryover Detail”
This new option has been added to Consolidated > Options (Interview Form CC-1). Detailed carryover entriesare not automatically accumulated for consolidated returns. It must be requested on Consolidated > Options(Interview Form CC-1). We refer to the prior year carryover entered in the “Alternative minimum tax fromprior year Form 4626” and “Minimum tax credit carryforward” fields on Credits > 8827-Credit Prior YearMinimum Tax (Interview Form P-1A) as summary entries. The summary entries will never be accumulated.Summary entries at the consolidated level will suppress accumulation of the detailed entries even if thisoption is present.
Consolidated Treatment for Net Positive ACE Adjustment from Prior Years
Detailed carryover entries are not automatically accumulated for consolidated returns. It must be requestedon Consolidated > Options (Interview Form CC-1). Prior year positive ACE adjustment should be on aconsolidated basis, not separate company. The “Net positive ACE adjustment from prior years – override”field on Taxes > Alternative Minimum Tax > Adjustments, Preferences and Other Items (Interview Form T-3)at the consolidated level will suppress accumulation of the detailed entries if this option is present.
Option to Suppress Automatic Book Adjustment on General > Depr and Depl Options and O/R(Interview Form DP-9)
This option is not applicable at the consolidated level.
New Consolidated Statement Format
Consolidated and Combined Statements have been merged into one workpaper. The new format simplifiesthe review. It applies to the 1120 federal system only.
New Level 1 Diagnostics
12 new level 1 diagnostics have been added to alert the preparer of an “out of balance” condition in aseparate company return that could throw the consolidated return out of balance. Three new level 1diagnostics have been added to alert the preparer of separate company asset numbers on Interview FormsDP-2, DP-3 and DP-4 that do not have matching DP-1 numbers (Interview only).
Tax Product Enhancements - Interview View • 39
Centralized Federal and State Consolidated Help
This help can be accessed from form level help on Consolidated > Membership Information (Interview FormCC-1). All state consolidated help can be viewed in one area.
Consolidated Option “Suppress Automatic Depreciation Adjustment Options”
No change to original Option X on Consolidated > Options (Interview Form CC-1). Option 1 is the new option.If Option X is used, the depreciation reported in consolidated taxable income is the amount reported foreach separate company’s taxable income, not the amount reported on its Form 4562. No adjustments aremade. If Option 1 is used, we will use the depreciation computed for each asset at the separate companylevel, not the separate company depreciation deduction reported in its taxable income. We will basedepreciation on the consolidated Form 4562, not the combined depreciation deduction. Automaticadjustment may still occur.
Consolidated Option “Carryover Statement Option (Division/DRE Only)”
Options 1 and 2 are new. You can now attribute all the current year loss to the parent only.
Consolidated Option “Treat Disregarded Entities as Taxable Entities”
This option on Consolidated > Options (Interview Form CC-1) will allow you to treat any Divisions orDisregarded Entities (DRE’s) as taxable entities on the consolidated return. If this option is used, the “Codefor Consolidated return” field on General > Basic Data (Interview Form 1) should not contain Division/DRE(the code “V”) When this option is used, this return should not be filed for federal or state tax purpose.
Consolidated “Options for Accumulated Totals Only Depreciation”
A new Option 1 “Do NOT recompute total depreciation” has been added to Consolidated > Options(Interview Form CC-1).
Consolidated “Form 5472 Accumulation Options”
The new option “Accumulate Form 5472 and use separate company name as reporting entity” has beenadded to Consolidated > Options (Interview Form CC-1). This option is used to accumulate separate companyname to print on Form 5472 instead of printing the consolidated name, address and FEIN.
Consolidated “Form 8865 Accumulation Options”
New option “Accumulate Form 8865.
In consolidated returns, 8865 will accumulate from separate companies. These options have been added as:Interview Forms: CC-1 box 146; Worksheet View: Consolidated > Options > Accumulate 8865.
Consolidated Statement “Allocation of Current Consolidated Capital Loss to MemberCorporations”
This option has been changed to allocate current consolidated capital loss to members without regard tosection 1231 gain. Only members with current capital loss should be allocated a consolidated capital loss.
Option “Print Form 8916-A for a Mixed Group”
This new option has been added to Consolidated > Mixed Groups > Life/Non-Life Mixed Group (InterviewForm CCLNL-1). Use this option to produce a consolidated version of Form 8916-A for a Mixed Group.
State
Alaska
Added Form AK 6300 – Incentive Credits
Tax Product Enhancements - Interview View • 40
Added Form AK 6310 – Education Credits
Arizona
Added - Schedule ACS Arizona Air Carrier Apportionment
Connecticut
Added Form CT-120 TCE - Connecticut Tax Credit Cap
District of Columbia
Added DC Unitary Combined Tax Return
Georgia
Added Form 900 - Georgia Financial Institutions Business Occupation Tax return
Added Form PT-440 - Return of Business License Taxes (county and city level filing)
Hawaii
Added Form F-1, Hawaii Franchise Tax Return
Added Form Form FP-1 - Hawaii Franchise Tax or Public Service Company Tax Install Payment Voucher
Added Form N-755 - Hawaii Application for Automatic Extension of Time to file Hawaii Franchise TaxReturn
Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit
Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing
Illinois
Added Schedule 80/20 - Related-Party Expenses
Added Schedule 4255 - Illinois Recapture of Investment Credits
Kentucky
Added Schedule KESA - Kentucky Environmental Stewardship Act Credit
Maine
Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld
Added Schedule 2P - Pass-through Entity Withholding Listing
Added Schedule 3P - List of Exempt Members
Added Form 941P-PV-ME - Maine Payment Voucher
Michigan - CIT Forms Added
MI - Form CIT 4891, Michigan Corporate Income Tax Annual Return
MI - Form CIT 4892, Michigan Corporate Income Tax Amended Return
MI - Form CIT 4893, Michigan Corporate Income Tax Small Business Alternative Credit
MI - Form CIT 4894, Michigan Corporate Income Tax Schedule of Shareholders and Officers
MI - Form CIT 4895, Michigan Corporate Income Tax Loss Adjustment for the Small Business AlternativeCredit
Tax Product Enhancements - Interview View • 41
MI - Form CIT 4896, Michigan Corporate Income Tax Unitary Business Group Affiliates Excluded from theReturn of Standard Taxpayers
MI - Form CIT 4897, Michigan Corporate Income Tax Data on Unitary Business Group Members
MI - Form CIT 4898, Michigan Corporate Income Tax: Non-Unitary Relationships with Flow-Through Entities
MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for UnderpaidEstimated Tax
MI - Form CIT 4900, Michigan Corporate Income Tax: Unitary Relationships with Flow-Through Entities
MI - Form CIT 4901, Michigan Corporate Income Tax E-File Annual Return Payment Voucher
MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits
MI - Form CIT 4903, Michigan Corporate Income Tax Withholding Opt-Out Schedule
MI - Form CIT 4905, Michigan Insurance Company Return for Corporate Income and Retaliatory Taxes
MI - Form CIT 4906, Michigan Insurance Company Amended Return for Corporate Income and RetaliatoryTaxes
MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions
MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions
MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule forFinancial Institutions
MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding
MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return
MI - Form FTW 4919, Michigan Schedule of Unitary Apportionment for Flow-Through Withholding
MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule
MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer
MI - Form MBT 4947, Michigan Schedule of Certificated Credits
MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding
MI - Form MBT 4974, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business TaxInsurance Filer
MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business TaxFinancial Filer
Missouri
Added Schedule NO-NJD, Missouri Small Business Deduction
Nebraska
Added Form 1120NF - Nebraska Financial Institution Tax Return
Added Form NFC - Statement of Nebraska Financial Institution Tax Credit
Added Form 1120XNF Nebraska Amended Nebraska Financial Institution Tax Return
North Carolina
Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative
New Hampshire
Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can be
Tax Product Enhancements - Interview View • 42
automatically included in the combined report are Corporations, S Corporations, and Partnerships.Information for non-designated members that are Fiduciaries or Individuals can also be entered manually.
Pennsylvania
Added Form REV-774 Pennsylvania Assignment of Tax Credit
South Carolina
Added Form 1101B - Bank Return Tax Return
Added Form 1104 - Savings and Loan Association Tax Return
Virginia
Added Schedule 500AB - Virginia Schedule of Related Entity – Add Backs and Exceptions
Wisconsin
Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit
Tax Product Enhancements - Interview View • 43
S Corporation (1120S) Product Enhancements - Interview ViewReturn to Table of Contents.
Federal
Schedule M-3 (Form 1120)
55 new interactive Schedule M-3 diagnostics have been added.
Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line.
Form 5452
New Worksheet for Figuring Current Year Earnings and Profits has been added.
Form 6765
A new election has been added where you can elect to not reduce the R&D credit and also to not carry thecredit to other deductions on page 1 of the return.
Form 8810
A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list eachmember of the specified aggregate group.
Controlled Group Credit Summary
This summary form has been added for the credits that can be allocated between controlled group members.The allocated credits carry automatically from Summary form to the appropriate credit forms.
Calculation History
A new worksheet that will display the calculated amounts for all income and deduction items for the past 4return calculations.
New State Adjustment Category Added to Worksheet View
This new category allows access to every state’s adjustment without navigating to each individual state. Itis accessed from federal level. There is no extra or less input data than the existing ones at the state level.If data is entered here, state menu will also highlight.
Calculation History
A new Calculation History report is informational that shows the results of the prior two calculations of thetax return. It is located on the federal menu following Form 1120.
State Codes
Input for “State codes” has been changed to display only US states plus “XX” and “FC.”
1099 Questions
Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data >Miscellaneous Information (Interview Form 4). Note that this input has been standardize across all systemsand both questions are handled in the same way in every system.
Tax Product Enhancements - Interview View • 44
Suppress Statements
A new section “Suppress Printing of Statements” has been added to General > Return Options (InterviewForm 4) . You can now selectively suppress various statements from printing in return.
Mailsheets
Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheetsaddresses.
Schedule K-1
A new option is available in General > Return Options > Processing Options (Interview Form 2) to print theshareholder name (rather than number) at the top of each schedule K-1.
Depreciation
New code 19 for “Mark-to-Market” has been added for Schedule M-3 purposes.
New column for “Partial Disposition” has been added.
Input field “Suppress automatic book adjustment” has been added. When this option is present, we assumetax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustment for depreciation will bemade.
Rents
New column for “X if Direct Expense” has been added.
Royalty
Input fields for “X to exclude from quantity limit”, “Property ID code”, “Depreciation”, and “Depreciation -state if different” have been added.
Extensions
New input field “Extension message to print at the top of extension form” has been added.
Foreign Returns
Input for attaching Form 8858 to Forms 1120, 5471 and 8865 have been condensed into one set of forms.Use Foreign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 toanother return type.
IRS Schedule K-1 Facsimilie View Forms
New Worksheets and Interview forms are available for IRS K-1 facsimilies. Enter information on these IRS K-1 interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. Theseforms are new K-1 format for passthroughs and in addition to older format.
General State
New columns have been added for “K-1 Reconciliation Print Code“ and “X NOT to Pro Forma.”
Foreign
Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have beenadded to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC).
Form 6252
We will now calculate and display cumulative totals for all columns on 6252, page 2.
Tax Product Enhancements - Interview View • 45
Return Summary
The second page of the return summary now includes a line to indicate the time the return was calculated.
State
Alaska
Added Form AK 6300 – Incentive Credits
Added Form AK 6310 – Education Credits
Arizona
Added - Schedule ACS Arizona Air Carrier Apportionment
Georgia
Added Form 900 - Georgia Financial Institutions Business Occupation Tax return
Added Form PT-440 - Return of Business License Taxes (county and city level filing)
Hawaii
Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit
Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing
Illinois
Added Schedule 80/20 - Related-Party Expenses
Added Schedule 4255 - Illinois Recapture of Investment Credits
Kentucky
Added Schedule KESA - Kentucky Environmental Stewardship Act Credit
Maine
Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld
Added Schedule 2P - Pass-through Entity Withholding Listing
Added Schedule 3P - List of Exempt Members
Added Form 941P-PV-ME - Maine Payment Voucher
Michigan - CIT Forms Added
MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for UnderpaidEstimated Tax
MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits
MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions
MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions
MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule forFinancial Institutions
MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding
MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return
MI - Form FTW 4919 Michigan Schedule of Unitary Apportionment for Flow-Through Withholding
Tax Product Enhancements - Interview View • 46
MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule
MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer
MI - Form MBT 4947, Michigan Schedule of Certificated Credits
MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding
MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business TaxFinancial Filer
Nebraska
Added Form 1120XNF Nebraska Amended Financial Institution Tax Return
North Carolina
Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative
New Hampshire
Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can beautomatically included in the combined report are Corporations, S-corporations, and Partnerships.Information for non-designated members that are Fiduciaries or Individuals can also be entered manually.
Pennsylvania
Added Form REV-774 Pennsylvania Assignment of Tax Credit
Wisconsin
Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit
Tax Product Enhancements - Interview View • 47
Fiduciary (1041) Product Enhancements - Interview ViewReturn to Table of Contents.
Interview Form 1
Input Box 53 has been adjusted to enter entity type F to prepare form 1041-QFT, a Qualified Funeral Trust.
Input Box 80 has been added to indicate a Partial Grantor Trust.
Input Box 81 has been added to indicate a perpetual care fund.
Interview Form 4
Input Box 35 has been added to print the beneficiary name instead of number on the Federal Schedule K-1.
Interview Form Partial Grantor Series
The Partial Grantor interview form series has been added to prepare the grantor portion of the trust as itrelates to a Partial Grantor Trust.
Interview Form K-8
Input Boxes 48 and 49 have been added to indicate the number of gravesites and income distribution for aperpetual care fund.
New or Modified Federal FormsForm 1041-QFT, U.S. Income Tax Return for a Qualified Funeral Trust has been added.
Form 1041, Perpetual Care Fund modifications have been added to form 1041.
Forms Partial Grantor Trust, Statement of Grantor Tax Items and all applicable supporting forms andstatements have been added for the grantor portion of a Partial Grantor Trust.
New State Forms
New Hampshire
NH-1041 and all supporting forms and schedules have been added
Texas
Texas Franchise Tax report and all supporting forms and schedules have been added.
Tax Product Enhancements - Interview View • 48
Employee Benefit Plan (5500) Product Enhancements - Interview ViewReturn to Table of Contents.
EfileForm 8955-SSA – Spring 2013
Tax Product Enhancements - Interview View • 49
Exempt (990) Product Enhancements - Interview ViewReturn to Table of Contents.
There were no changes to Interview View.
Tax Product Enhancements - Interview View • 50
Estate and Gift (706/709) Product Enhancements - Interview ViewReturn to Table of Contents.
TennesseeAdding TN Form INH 301, Inheritance Tax Return
Adding TN Form INH 302, Short Form Inheritance Tax Return
Adding TN Form INH 304, Application for Extension of Time to File Estate Tax Return
Tax Product Enhancements - Interview View • 51
Tax Product Enhancements - Worksheet ViewClick one of the links below to read about the tax application updates included with release 2012.01000.
Individual (1040) Product Enhancements - Worksheet View
Partnership (1065) Product Enhancements - Worksheet View
Corporation (1120) Product Enhancements - Worksheet View
S Corporation (1120S) Product Enhancements - Worksheet View
Fiduciary (1041) Product Enhancements - Worksheet View
Employee Benefit Plan (5500) Product Enhancements - Worksheet View
Exempt (990) Product Enhancements - Worksheet View
Estate and Gift (706/709) Product Enhancements - Worksheet View
Tax Product Enhancements - Worksheet View • 52
Individual (1040) Product Enhancements - Worksheet ViewReturn to Table of Contents.
Federal
Basic Data > General
In the 2013 system, fields will be available for taxpayer and spouse first name, middle initial, last name,and suffix. In this year's system, users will have the ability to define those fields manually. The 2012-2013Pro Forma program will use the manual entries first. If they are not present, logic will be present to make a"best guess."
Interest > IRS 1099-INT
A default change has been made to better serve the needs of our users. If tax-exempt interest has beenentered in Box 8 of the 1099-INT, it will be considered state taxable. This is the opposite of last year wherethe interest was considered state nontaxable.
The Consolidated Brokerage Statement is unchanged. The user continues to have input fields to explicitlystate if federal tax-exempt interest is either state taxable or state nontaxable.
Passthrough worksheets, Basis Limitation Information
A default change has been made to reduce audit risk. Rather than including guaranteed payments from basiscalculation, we will exclude them. Pro Forma will be updated so existing returns will not require a changein the 2012 system.
To be consistent with the change above, a default change will occur to include guaranteed payments fromat-risk calculations. This will impact the At-Risk Limitations (Form 6198) section on several worksheets:
Business worksheetRent and Royalty worksheetFarm / 4835 worksheetPassthrough worksheets
Enhancements
Tax Equalization - Exclude Interest, Dividends, and Passthrough Income
Fields to "exclude from hypothetical calculation" have been added to the following:
Interest > ForeignDividends > ForeignConsolidated 1099 > Form 1099-INT Interest IncomeConsolidated > Form 1099-DIV Dividend IncomeFiduciary Passthrough > GeneralPartnership Passthrough > GeneralS Corporation > General
Note: The Large Partnership Passthrough worksheet will be updated at a later date.
Tax Product Enhancements - Worksheet View • 53
Fields to "exclude resident foreign country income from hypothetical calculation" have been added to thefollowing:
Tax Equalization > Federal Calculation OptionsTax Equalization Engagement > Engagement - Federal Calculation Options
Depletion Summary Grids
The worksheet view input for depletion properties and depletion production income and expenses has beenchanged to summary grids. These summary grids allow import, export, and sorting to occur.
Property numbers on the Property Production Income and Expense are required for matching purposes.
Depreciation Adjustments to Depletion
Fields for depreciation and state if different depreciation have been added to Property Production Incomeand Expenses. These give the user more flexibility in defining depreciation related to depletion.
Calculation Time Added to Return Summary
The second page of the return summary now includes a line to indicate the time that the return wascalculated.
International ACH Transaction (IAT) / Diagnostic 21667
In the prior year, Basic Data > Direct Deposit / Electronic Funds Withdrawal had a checkbox for"International ACH Transaction (IAT)". This has been changed to a picklist with the following options:
Blank (Default)Domestic AccountForeign Account
Leaving the question blank would operate as it did in prior years. Diagnostic 21667 would issue and thebanking information would carry through the return as a domestic account.
Selecting "Domestic Account" would suppress diagnostic 21667 and the banking information would carrythrough the return as a domestic account.
Selecting "Foreign Account" would suppress diagnostic 21667 and the banking information would carrythrough the return as a foreign account. State diagnostics would issue.
Pro Forma will change checked entries in 2011 to foreign accounts in 2012; 2011 blank entries will assumedomestic accounts with an accompanying preparer note.
Form 5471 - Dynamic Table for Shareholders
In worksheet view, a dynamic picklist has been added on Information Return of US Persons with Respect toForeign Corporations > Separate Schedule I - Shareholder's Income from Foreign Corporations > Shareholdername.
The picklist will allow valid values to be selected from entries on Information Return of US Persons withRespect to Foreign Corporations > Schedule B - U.S. Shareholders of Foreign Corporation.
Foreign Tax Credit (FTC) Carryback Diagnostics
Diagnostics have been added to alert the user that they may need to amend their return to reflect theforeign tax credit carryback.
Form 1116. A foreign tax credit carryback has been calculated in the amount of $&$ for thegeneral limitation income category. Foreign tax credit carryovers have been adjusted to
Tax Product Enhancements - Worksheet View • 54
reflect the carryback. The prior year return may need to be amended to reflect the foreign taxcredit carryback.
Form 1040-ES - Statement for Adjusted Gross Income
A statement has been added to provide the user additional detail in regards to Form 1040-ES, Line 1"Adjusted gross income you expect in 2013."
Office Manager - Additional Fields for Form 2848
Office Manager fields have been added per preparer for the following:
Designation codeLicensing JurisdictionLicense/Bar or Enrollment Number
Overrides are available on Power of Attorney > Representative(s)/Appointee(s).
Federal Elections - New Election for Section 1.1367(g)
Input has been added for this election. It may be found on Federal Elections > Election to Adjust Basis ofShareholder Stock in S Corporation.
Letters/Filing Instructions
Letters have been updated to support electronic filing of any state amended returns that may be added.
Conservation Expenses Calculation
Gross conservation expenses entered on Farm / 4835 > Expenses will be multiplied by 25% to calculate netconservation expenses.
An override for net conservation expenses is available when there is a gain on the sale of farm animals fromSchedule D or Form 4797. This override may be found on Farm / 4835 > Expenses.
Schedule J - Statement for Elected Farm Income
A statement has been added to provide the user additional detail in regards to Schedule J, Line 2a "Electedfarm income". This line contains an optimization, and the statement indicates how the program arrives atthe final number.
1099-G - Ability to Associate to Schedule F
Input has been added to associate a 1099-G to a Schedule F. Agricultural program payments entered onOther Income > Certain Government Payments (IRS 1099-G) will flow to Schedule F and/or Form 4835.
In addition, agricultural payments have been added to the Certain Government Payments (IRS 1099-G)summary grid to facilitate data entry and import/export.
Form 1116 - Suppress Statements
An option has been added to suppress statements associated with Form 1116 and Form 1116AMT. This optionis present on Returns Option > Supporting Statements Print Options > Form 1116 supporting statements.
Stocks, Securities, and Other Non-Passive Transactions Summary Grid Consistency
To the extent possible, the summary grids for Stocks, Securities, and Other Non-Passive Transactions on theGains and Losses worksheet and Consolidated 1099 worksheet have been made consistent. This will allowusers to more easily import and export this type of data in the system.
Tax Product Enhancements - Worksheet View • 55
TSJ, FS, and State fields are not present on the Consolidated 1099 worksheet as they are present in anothersection on this worksheet to reduce the data entry required by the user.
Depreciation - Partial Distribution
A partial distribution of an asset may be made through an entry on Depreciation > General > Partialdistribution. This box may be used to enter either a percentage or an amount. A value of less than 1 isconsidered a percentage, while a value of 1 or more is considered an amount.
When this field is used, a new asset will be created with applicable information included. Certain inputfields for the existing asset will be reduced accordingly.
Once the user makes the entry and attempts to leave the field, they will be alerted that input changes willbe made. Also, they will be made aware that the action can only be undone manually.
Additional information is available to the user within the partial distribution field's help screen.
Depreciation - Diagnostic for ADS Assets
Diagnostic 30360 will no longer issue for each farm asset using a method of ADS (alternative depreciationsystem).
Like-Kind Exchanges to Form 2106
Assets attached to Form 2106 / Statement SBE may be a part of a like-kind exchange.
Form 8889 - HSA Contributions from W-2 Input
Form 8889, Lines 4 and 9 will now reference data entry from Wages > IRS W-2 > Box 12 code and amountfields. When a code of "R" is used for employer contributions to an Archer MSA, the amount will be includedin the calculation of Form 8889, Line 4. When a code of "W" is used for employer contributions to a HSA, theamount will be included in the calculation of Form 8889, Line 9.
Excess Contributions to Coverdell ESAs
Input has been added to calculate a penalty for excess contributions to Coverdell ESAs on Retirement PlanTaxes > Distributions from Education Accounts and Excess Contribution Information.
In order to calculate each contributor's limit for the year, the contributor's filing status and modified AGImust be entered. If the amount of contribution made by that contributor exceeds their contribution limit, apenalty is calculated.
Additional information is available in the help screens.
Shareholder Debt Basis Calculation
Input has been added to compute the shareholder's debt basis. This input may be found on Passthrough >Basis Limitation Information, under the heading titled Debt Basis.
Tax Product Enhancements - Worksheet View • 56
Page 2 of the S Corporation Basis Worksheet in the government menu indicates how the total shareholderstock and debt basis is calculated.
Input Consistency for 1099 Questions
To promote consistency across systems, the 1099 questions changed on the Business worksheet, Rent andRoyalty worksheet, and the Farm worksheet. The questions now state:
If you made payments during the tax year that would require you to file Form(s) 1099If you filed, or will file all required Form(s) 1099
A checkmark is a valid entry.
California Source Option
New options have been added to Passthrough > Activity > State grid, California source. The first two optionslisted below are new:
Amounts in state column are CA all-sources amountsUse state amounts for CA source and CA all-sourcesUse state amounts for CA source and fed amounts for CA all-sources (default)
As the name suggests, these options will only change the California return. A different number for can nowbe entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts.
Nonresident / Part Year Resident State Overrides
Input has been added at the federal level to allow state information to be overridden.
Export/Import Category in Worksheet View
A new category has been added to Worksheet View that contains several worksheets:
Depletion Property SummaryFiduciary K-1Partnership K-1S Corporation K-1
Many of these worksheets use grids that allow import and export of data to and from the return.
Form and Law Changes
1099-INT
The IRS released a new 1099-INT. The state field is now present in Box 11 and the program has beenchanged to match. This small change may catch some preparers familiar with our system off-guard. Thestate code is no longer at the top of the form as many users will expect.
In addition, the IRS added Box 12 for state ID, and Box 13 for state tax withheld. Input fields were availablefor this data in the prior year and were moved to match the new 1099-INT.
1099-DIV
The IRS also released a new 1099-DIV, with the same changes to state, state ID, and state tax withheld.
Two new fields have also been added to the 1099-DIV by the IRS: exempt-interest dividends (Box 10) andspecified private activity bond interest dividends.
Tax Product Enhancements - Worksheet View • 57
1099-K
A new source document was made available by the IRS, the 1099-K. It is available on the Other Income >Payment Card and Third Party Network Transactions (IRS 1099-K).
The 1099-K may be associated to a business, farm, or rent / royalty through input. If not tied to any ofthese places, payments entered here will flow to Form 1040, Line 21. The IRS has indicated that they willnot have separate lines on the Schedule C, Schedule F, and Schedule E for "merchant card and third partypayments". Amounts will be included in the gross number with a supporting statement.
Checklists
Form 8863 (Education Credits) and Form 8867 (Paid Preparer's Earned Income Credit Checklist), the IRS willbe requiring more information to determine eligibility to take certain credits. Input fields will be added asneeded.
Form 8915-RA Removed
Form 8915-RA (Qualified Hurricane Retirement Plan Distributions and Repayments) has been removed fromthe system. Form 8930 (Qualified Disaster Recovery Assistance Retirement Plan Distribution) will remain.
Bank Products
No longer supported.
Additional Field InformationRequired to file Form TD F 90-22.
Moved to the Interest > Foreign Account Information
New Fields
Basic Data > Direct Deposit / Electronic Funds Withdrawal
Entity number (TX only)State use
Electronic Filing > General
Entity number (TX only) allows payment due to be applied to a particular entityState use is available for MI-DTW payment voucher usage
Electronic Filing > PDF Attachments
Option to suppress QEPDOption to suppress 1065 K-1 basis limitationOption to suppress 1120S K-1 basis limitationOption to suppress sale of home
Returns Option > Supporting Statements Print Options
Form 1116 supporting statements
Depreciation and Depletion Options and Overrides > Depreciation Options
Kansas first year deduction option
Tax Product Enhancements - Worksheet View • 58
Two Year Comparison > Other Taxes
Homebuyer repayment
Federal Elections > Election to Adjust Basis of Shareholder Stock in S Corporation
S Corporation nameEmployer identification number
Interest > IRS 1099-INT
Recipient stateRecipient ZIPRecipient foreign country codeRecipient foreign province/state/county
Interest > Foreign
Exclude from hypothetical calculation
Dividends > IRS 1099-DIV
Recipient stateRecipient ZIPRecipient foreign country codeRecipient foreign province/state/countyExempt-interest dividendsSpecified private activity bond interest dividends
Dividends > Foreign
Exclude from hypothetical calculation
Consolidated 1099 > General
Recipient foreign country codeRecipient foreign province/county
Consolidated > Form 1099-DIV Dividend Income
Exclude from hypothetical calculation field
Consolidated 1099 > Form 1099-INT Interest Income
Exclude from hypothetical calculation field
Gains and Losses > Asset Acquisition Statement
TSJ
Note: This replaces the FSO field.
Rent and Royalty > Tax Equalization
Hypothetical AMT federal passive activity loss carryover
Tax Product Enhancements - Worksheet View • 59
Farm / 4835 > Expenses
Conservation expenses - gross
Other Income > Miscellaneous Income
Recipient foreign country codeRecipient foreign province/state/county
Miscellaneous Income > Other
New York City tax withholdingYonkers tax withholding
Other Income > Certain Government Payments
Recipient foreign country codeRecipient foreign province/state/county
Other Income > Payment Card and Third Party Network Transactions (IRS 1099-K)
All fields
Itemized Deductions > State and Local Sales Tax Information
Itemized receipts
Itemized Deductions > Contribution Carryovers
Cash, 50%, 2011 amountCash, 30%, 2011 amountAppreciated property, 30%, 2011 amountAppreciated property, 20%, 2011 amountConservation real property, 100%, 2011 amountConservation real property, 100%, 2011 AMT amountConservation real property, 50%, 2011 amountConservation real property, 50%, 2011 AMT amount
Depreciation > General
Kansas first year deduction optionKansas deductionDate ceased to qualify for Kansas deduction
Noncash Charitable Contributions > Noncash Charitable Contributions of $5000 or Less
Vehicle identification number
Retirement Plan Taxes > Distributions from Education Accounts and Excess ContributionInformation
Name of contributorFiling status of contributor
Tax Product Enhancements - Worksheet View • 60
Amount of contributionContributor's modified AGI
Residential Energy Credits > General
2011 windows expense2011 nonbusiness energy credit
Credit for Prior Year Alternative Minimum Tax > Credit for Prior Year Alternative Minimum Tax(Form 8801, Form 1116)
Taxes reclassified under high tax kickout
Tax Equalization > Federal Calculation Options
Exclude resident foreign country income from hypothetical calculationResident foreign country code - override
Tax Equalization Engagement
All fields
Extensions > Name/Address to Which Form 4868 or 2350 Correspondence Should be Sent
State if differentZIP or postal code if different
Deleted Fields
Electronic Filing > Bank Products Options
Bank product will be applied for with River City Bank for this returnBank product application also applies to the home state returnConfirm that you have received the proper consent for disclosure of taxpayer information tothe bank
Letters and Filing Instructions > Use and Disclosure Consent Templates
Bank product use and disclosure option
Two Year Comparison > Other Taxes
Advance earned income creditForm 5405, Line 16
Wages, Salaries and Tips > Social Security and Medicare Tax on Unreported Tip Income
E-file Pro FormaE-file explanation for unreported tip income
Business > General
Not small business1099 blankGross amount of merchant card / third party network payments reported on Form 1099-K
Tax Product Enhancements - Worksheet View • 61
Business > Foreign
8938 code8938 name
Gains and Losses > Sale of Home section
8938 code8938 entity
Gains and Losses > Asset Acquisition Statement
FSO
Note: This was replaced by the TSJ field.
IRAs, Pensions and Annuities > IRA Information
Basis in rollovers from qualified retirement plans for prior yearsAmount from 2010 Form 8606, Line 20aAmount from 2010 Form 8606, Line 25a for rollovers to Roth IRAsBasis in Roth IRA conversions prior to 2010Populate Part III if no distributions from Roth IRA fieldAmount of distribution allocable to in-plan Roth rollover within 5 year of rolloverAmount from 2010 designated Roth Account Income Acceleration > Line 3Amount from 2010 Form 8606, Line 25a for an in-plan rollover to Roth accountPopulate Part IV if no distribution
IRAs, Pensions and Annuities > Qualified Disaster Recover Assistance Retirement PlanInformation
All fields
Rent and Royalty > General section
Leave 1099 questions blank
Rent and Royalty > Income
Merchant card and third party payments - rentMerchant card and third party payments - royaltyCash back
Rent and Royalty > Foreign
8938 code8938 name
Fiduciary Passthrough > General
Small business code
Farm / 4835 > General
Leave 1099 questions blank
Tax Product Enhancements - Worksheet View • 62
Farm / 4835 > Foreign
8938 code8938 name
Depreciation > Listed Property and Percent Excluded
Total business miles after 6/30
Depreciation Totals > Election to Expense Certain Tangible Property
Type Carryover of disallowed deduction from last year for real property
Employee Business Expense > Listed Property Information
Business miles after 6/30
Recapture > Recapture of Low-Income Housing Credit (Form 8611)
Foreign countryForeign province/county
Nonconventional Source Fuel Credit (Form 8907) > Facility Information
Small business code
Alternative Motor Vehicle Credit (Form 8910) > Alternative Motor Vehicle Credit
Small business code
Other Credits > Flowthrough Credits - Form 8931 - Agricultural Chemicals Security Credit
Small business code
Other Credits > Flowthrough Credits - Form 8932 - Credit for Employer Differential WagePayments
Small business code
Other Credits > Flowthrough Credits - Form 8933 - Carbon Dioxide Sequestration Credit
Small business code
Expatriate Wages > Wages
8938 code8938 name
Expatriate Information > Other Income, Adjustments and Noncash Income
8938 code8938 name
Tax Treaties > Election to Defer Taxation on RRSP and/or Canadian Pension Plan Earnings
All fields
Tax Product Enhancements - Worksheet View • 63
Tax Treaties > Statement in Accordance with Revenue Procedure 2002-23 to Report
All fields Community Property > Community PropertyMaking work pay for taxpayerMaking work pay for spouse
E-file 1040
90-22.1
Mandated starting July 2013. Expected delivery Spring 2013
State e-file
Electronic filing of returns: adding TXElectronic filing of amended returns: NY onlyElectronic filing of estimates: KSElectronic filing of extensions: adding KS, MD, TX
State
Nonresident and Part Year State Overrides
A new feature allows the prorating of income between states based on percentages entered. A single, globalpercent can be used, or each income item can be prorated based on percent or amount. Thepercent/amount is applied to the total per income item, not to the underlying detail.
Limitations:
Not all states follow the Federal return to the letterNot all states allow efile without the detail available
Alabama
Added foreign employer address overrides to Alabama Individual > General > Basic Data > Lines 9-11 and 17-19
New donations to Alabama > General > Contributions
California
New options have been added to Passthrough > Activity > State grid, California source.
The first two options listed below are new:
Amounts in state column are CA all-sources amountsUse state amounts for CA source and CA all-sourcesUse state amounts for CA source and fed amounts for CA all-sources (default)
As the name suggests, these options will only change the California return. A different number for can nowbe entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts.
Form CA 568 now allows suppression of Schedule A/B and Schedule K. New boxes have been addedCalifornia > 568 – Limited Liability Company Return of Income > Options.
Delaware
Added interactive diagnostic functionality
Tax Product Enhancements - Worksheet View • 64
Hawaii
Added Form HI N-109, PG1 and PG2. This is for the carryforward and carryback of a Hawaii NOL. Input is onHawaii > Other > Carryback of NOL (Form N-109).
MeF (modernized electronic filing) is available for 2012 returns.
Indiana
Schedule TCSP-40, Twenty-First Century Scholars Program Credit.
Renter’s Deduction input modified to allow separate input boxes for the Landlord’s and Rental property city,state, and ZIP code on Income / Deductions worksheet > Renter’s Deduction section > City through ZIP codefields.
Income / Deductions worksheet > Private School / Homeschool Deduction section.
Income / Deductions worksheet > Net Operation Loss Carryforward section > Domestic production activitiesfield through Certain trade or business deductions based on employment of unauthorized alien field.
Income / Deductions worksheet > Net Operation Loss Carryforward section > National Guard and reservecomponent member’s deduction field through Nonresident military spouse earned income deduction field.
Kansas
Electronic filing of estimated taxes and extension payments only if direct debit input is present. Not allowedin batch electronic filing.
Form K-64, Business and Job Development Credit removed due to expiration.
Form K-89, Rural Opportunity Zone Credit (e-filing only) added.
Schedule K-120EX, Expensing Deduction. A one-time deduction is available to Kansas businesses includingsole proprietors for machinery and equipment purchased in the year that it is placed in service in Kansas.The expensing deduction must qualify with the IRS under IRC Section 168: Accelerated cost recoverysystem.
Form K-40, Line 39 – Kansas Hometown Heroes fund: All contributions are used solely for the purpose ofadvocating and assisting Kansas Veterans, dependents and survivors ensuring they receive all federal andstate benefits they have earned. Enter on Line 39 the amount you wish to contribute to this fund (must be $1or more).
Massachusetts
Installed the ability to have multiple entities of Form M-1310 "Statement to Claimant of Refund" tied to thefederal occurrence number. Other > Statement of Claimant of Refund Due a Deceased Taxpayer >Occurrence Number.
Michigan
Form MI-4884, Pension Schedule.
Form MI-4973, Pension Continuation Schedule.
Form MI-4976, Home Heating Credit Claim Supplemental Income / Deductions worksheet > VoluntaryContributions section > Special Olympics field.
Credits worksheet > Household Income section > Gifts or expenses paid on your behalf field.
Credits worksheet > Homestead Property Tax Credit (Form MI-1040CR) section > Taxable value of homesteadincludes unoccupied farmland classified as agricultural field.
Income / Deductions worksheet > Nonresident and Part-year Information section > Domestic productionactivities deduction field.
Tax Product Enhancements - Worksheet View • 65
Other worksheet > Power of Attorney (Form 151) section > Additional Email Address, Additional TelephoneNumber, Additional Fax Number, Additional Contact Name, and Grant unlimited authorization fields.
Other worksheet > Amended section > Small business investment tax credit field.
Michigan – Michigan Cities
New input for additional electronic filing information for W-2’s on Michigan Cities worksheet > Income /Deductions section > Wages (for Nonresident Cities Only) and Additional Information sub-section.
New input for Partnership or S Corporation taxes paid on Michigan Cities worksheet > Credits section > Creditfor Taxes paid to Another City and Credit for Taxes Paid by a Partnership sub-section.
Missouri
New check box for amounts “Carried Forward” for Miscellaneous Tax credits: Credits worksheet > OtherCredits section > Carried Forward field.
Adding Form MO-NJD – Small Business Deduction for New Jobs.
Montana
New input on Montana General > Options > Do not discuss return with your spouse field for check box formain form to not discuss return with your spouse.
Nebraska
Add NR/PY Schedule E state source statement.
Added interactive diagnostic functionality.
New Hampshire
Letters and Return Summary now produce for NH–SMLLC returns.
New input on Business Tax Returns (NH-1040 and BET-PROP) Proprietorship Tax Return > Income /Deductions > Separate Entity Adjustments sub-section.
New input on Single Member LLC (NH-1040 and BET-PROP) Business Profits Tax > Income / Deductionssection > Separate Entity Adjustments sub-section.
New Jersey
There are 3 new contribution codes allowed. Input has been added to New Jersey > General > Donations >Other contributions code.
Created output forms for the NJK1P/NJK1S that were previously only for electronic filing purposes. Theforms only print with the accountant copy of the return.
The 2D barcode is now mandatory with more forms impacted.
New York Electronic Filing
MeF is available for 2012 PIT returns.
New Mexico
New Mexico has added 3 new credits for 2012: New Mexico > Credits > Other Credits (Form PIT-CR).
North Carolina
MeF is available for 2012 returns.
Form NC-478A is now obsolete and has been removed.
Tax Product Enhancements - Worksheet View • 66
Ohio – Ohio Cities
Toledo. A primary source of income can be selected. Aggregate losses from income sources other than theprimary source will be suspended. This option is activated by entering a code on Ohio Cities > Toledo – FormIR > Primary income code.
Valid entries are: W - Wage, S - Self-employment, E - Rental, M - Miscellaneous. Suspended losses from prioryears may also be entered on Ohio Cities > Toledo – Form IR section > Suspended Losses sub-section.
All Cities. Credit for taxes paid overrides are now provided on Ohio Cities > Credit for taxes paid. Theseoverrides allow the preparer to override the amounts used in credit calculation on a per city basis. An optionhas also been added to limit the credit to the amount of withholding and direct payments if less than thecalculated tax.
Suspended losses may be entered on Ohio Cities Income Allocation > Losses Suspended per Entity on a perentity basis.
Oklahoma
Oklahoma has added 6 new contributions this year: Oklahoma > General > Contributions.
Oregon
Multnomah has mandated 2D barcodes for 2012.
Oregon has added direct deposit for its 529 College Savings Plan: Oregon > General > 529 College SavingsPlan.
Pennsylvania
Added new Form PA 40-X Pennsylvania > Other > Amended Return.
Add ability to electronically file the spouse version.
Pennsylvania Cities (PGH obsolete)
In accordance with PA Act 32, the Pittsburgh City/School District and Mount Oliver individual earned incometax returns are prepared using the Pennsylvania Cities product; there is no longer a separate product forPittsburgh available through ProSystem fx for 2012. Pertinent information entered through the 2011Pittsburgh product will pro forma/roll forward into the 2012 Pennsylvania Cities product as a result.
Utah
Credits > Nonrefundable Credits > Gold and silver coin sale credit: Added input for gold and silver coin salecredit.
Credits > Nonrefundable Credits > Veteran employment tax credit: Added input for veteran employment taxcredit.
West Virginia
Schedule H, Certification of Permanent and Total Disability input modified to allow separate input boxes forthe Physician’s address, city, state, and ZIP code on Other > Certification of Permanent and Total Disability(Schedule H) > Address through ZIP code.
Tax Product Enhancements - Worksheet View • 67
Partnership (1065) Product Enhancements - Worksheet ViewReturn to Table of Contents.
Schedule K-1, Federal and State Schedule K-1’s are now overrideable from Worksheet input
K-1’s at the Federal and State level can be overridden on Worksheet Federal > Partners > Federal/StateSchedule K-1 Overrides. This new summary grid allows the user to import from an excel spreadsheet formore efficient entry of Schedule K-1 partner data.
Schedule K-1, Option to Print Partner’s Name Instead of Partner Number on Top of the FederalSchedule K-1
Input is now available, to request the partner name to print on top of the Schedule K-1 instead of thepartner number on Interview Form 2, Box 47 (Worksheet Federal > General > Return Options > ProcessingOptions > X to print partner name rather than number on Schedule K-1).
Schedule K, Option to create Schedule K based upon Schedule K-1 overrides
An option is available to complete Federal Schedule K with the Schedule K-1 override entries. UseWorksheet Federal > Partners > General Options > Schedule K-1 Print Options > Calculate reverse Schedule Kfrom K-1 override.
Schedule K-1 Multiple Activity, Schedule of Activities Alternative
A new summary grid is available to import activity information for Schedule K-1 support from Excel. UseWorksheet Federal > Partners > Federal/CA Alternative K-1 Activity Schedule Import.
Passthrough Activities, An Export Summary Grid is added for Passthrough Activity Data
An export summary grid is now available to provide a spreadsheet to move passthrough activity level data tothe following systems: 1040, 1041.
Passthrough, IRS K-1 Input Format
A new input method is added for passthrough. The IRS K-1 format is available on Interview Form IRS K1P(Worksheet Federal > Income/Deductions > Partnership Passthrough) and IRS K1F (Worksheet Federal >Income/Deductions > Fiduciary Passthrough).
Alternative Method for Entering Federal Special Allocations in Worksheet View
New worksheets are available to enter Special Allocations for Federal allocable items. These worksheets usethe allocable item description as opposed to the allocation codes. This method of allocation is available inWorksheet Federal > Partners.
Depletion
Summary grids are available for Property, Well and Depreciation on Worksheet Federal > Income/Deductions> Depletion > Property and Cost Depletion; Property Production Income and Expenses; Depletion Property/Overhead Depreciation and Amortization.
Depletion, Depreciation Adjustment
Well level depreciation may be adjusted on Interview Form E-2, Boxes 130 and 139 (Worksheet Federal >Income/Deductions > Depletion > Property Production Income and Expenses > Depreciation; Depreciation –State (if different).
Tax Product Enhancements - Worksheet View • 68
Depletion, Option to Produce an Alternative Depletion Schedule that uses a Property ID CodeInstead of a Property Description
An option is available to produce the Schedule of Mineral Interests – Summary using the Property ID Codeinstead of the Property description on Interview Form E-2, Box 109 along with Interview Form 2, Box 45(Worksheet Federal > Income/Deductions > Depletion > Property and Cost Depletion > Property ID Codealong with Worksheet Federal > General > Return Options > Processing Options > Option to SuppressDepletion Schedules).
Depletion
The partial barrel calculation is added which allows marginal barrels to be taken first.
Depletion Property Summary Grid Export
A grid is added to the “Export“ tab for depletion. This data will be a summary of the property information.It will populate with the data from the Schedule of Mineral Interest Properties. It can be exported to anExcel spreadsheet.
Partner Basis
New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-1, Boxes 36and 110 (Worksheet Federal > Partners > Partner Basis > Partner Basis Options > Include reduction ofliabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > Partner Basis Information >Include reduction of liabilities in adjusted basis) for the Partner Basis Worksheet.
New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-3, Boxes 37and 113 (Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Options > Include AMT reductionof liabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > AMT Partner BasisInformation > Include AMT reduction of liabilities in adjusted basis) for the AMT Partner Basis Worksheet.
New input is available for loans to partners on Interview Form PB-1, Box 111 (Worksheet Federal > Partners> Partner Basis > Partner Basis Information > Loan to partner) for the Partner Basis Worksheet.
New input is available for loans to partner on Interview Form PB-3, Box 114 (Worksheet Federal > Partners >Partner Basis > AMT Partner Basis Information > Loan to partner) for the AMT Partner Basis Worksheet.
New input is available for loans from partner on Interview Form PB-1, Box 112 (Worksheet Federal >Partners > Partner Basis > Partner Basis Information > Loan from partner) for the Partner Basis Worksheet.
New input is available for loans from partner on Interview Form PB-3, Box 115 (Worksheet Federal >Partners > Partner Basis > Partner Basis Information > Loan from partner) for the AMT Partner BasisWorksheet.
Form 2848 - Power of Attorney and Declaration of Representative/Form 8821, Tax InformationAuthorization
Office Manager now contains fields for designation code, licensing jurisdiction, and license/bar orenrollment number. Overrides are available on Interview Form O-12, Boxes 110 through 112 (WorksheetFederal > Other > 2848 – Power of Attorney > Representative(s)/Appointee Individuals).
Form 2848 is now prepared from entries on Interview Form O-12. Form 8821 is now prepared from entries onInterview Form O-12A.
Form 8949, Sales and Other Dispositions of Capital Assets
Added and available for processing.
Tax Product Enhancements - Worksheet View • 69
Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships
Form 8865 may now be prepared in one return, and accessed and filed from other returns. This featureapplies to the Individual, Partnership, Corporation, S Corporation, and Exempt Organization systems.
In addition, a Form 8865 version of the following forms is prepared: Form 3468, Form 4562, Form 4797,Form 8825, and Schedule F.
State Returns
State Schedule K-1 Overrides
State level Schedule K-1s may be overridden on Worksheet Federal > Partners > Federal/State Schedule K-1Overrides.
State Schedule K-1 Overrides Reconciliation
A reconciliation of any State Schedule K-1 overrides entered is produced to tie the override numbers to thestate Schedule K-1.
Estimate Reminder Letters Added for States and Cities that have Estimates
Estimate reminder letters for states and cities may be requested on Interview Form 9, Box 40 (WorksheetFederal > General > Letters and Filing Instructions > General Letter Information > Estimate reminder letter).The Office Manager > Print option is also available.
State K-1 Export to 1040 is expanded to Arizona, Iowa, Nebraska, North Dakota, and Utah
Common State Tab in Worksheet is Expanded for Adjustments to Federal Income and ScheduleK Overrides
Worksheet Federal > Common State.
Arizona
Form 338, Credit for Investment in Qualified Small Businesses is added and available for processing.
California
Form 592, Partner/Member information is now in a summary grid format for Worksheet input.
Schedule K-1 Multiple Activity, Schedule of Activities Alternative. A new summary grid is available toimport activity information for Schedule K-1 (565) support from Excel. Use Worksheet Federal > Partners >Federal/CA Alternative K-1 Activity Schedule Import.
Illinois
Electronic Filing is available.
Indiana
Form WH-18, Information is now in a summary grid format for Worksheet input.
Maine
Form 1065ME and Schedule PSI are obsolete. New Forms 941P-ME and 941P-PV-ME are used for partnershipreturns this year.
Tax Product Enhancements - Worksheet View • 70
Maryland
Schedule K-1 from a Passthrough, Input is added for a Maryland partnership that had taxes paid on theirbehalf from a passthrough to be able to include the K-1 from that passthrough in the electronic file. UseInterview Forms MD16 and MD17 (Worksheet Maryland > General > Schedule K-1 Information fromPassthrough, Electronic Filing).
New Hampshire
Combined Group Processing is available.
Pennsylvania
Form REV-774, Assignment of Tax Credit is added and prepared from entries on Interview Form PA20(Worksheet Pennsylvania > Corporate Tax Report > General > Assignment of Tax Credits).
Rhode Island
Form RI 1096V, Passthrough Withholding Payment Voucher is added and is available for payment ofpassthrough withholding.
Tennessee
Form FAE 170, Schedule G is now completed when the Federal 1065 Schedule L is not required.
Tax Product Enhancements - Worksheet View • 71
Corporation (1120) Product Enhancements - Worksheet ViewReturn to Table of Contents.
Federal
Schedule M-3 (Form 1120)
55 new interactive Schedule M-3 diagnostics have been added.
Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line.
Form 1118
Interest and dividends now can be automatically carried to Form 1118 based on detail entries onIncome/Deductions > Interest or Dividend (Interview Forms B-1 and B-2.) Form 1118 will be automaticallycreated from these entries for income category “N” (Passive income) and “A” (General income).
Form 1120-F
Schedule W on page 7 has been added to support the computation of overpayment resulting from taxdeducted and withheld under Chapter 3 on Line 8b, page 1.
Form 4626
Statement of “AMT Domestic Production Activities Deduction (DPAD) Adjustment” will be produced tosupport the AMTDPAD adjustment included in Line 2o. The detailed statement will be produced to supportLine 4d for net positive ACE adjustment from prior years.
Form 5452
A new worksheet for figuring current year earnings and profits has been added.
Form 6765
A new election has been added where you can elect to not reduce the R&D credit and also to not carry thecredit to other deductions on page 1 of the return.
Form 8810
A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list eachmember of the specified aggregate group.
Form 8827
You can now enter year by year prior year minimum tax carryover detail on Credits > 8827 > Prior YearMinimum Tax Carryover (Interview Form A-5) with type “M.” Section 382 limitation capability also has beenadded. We refer to the prior year carryover entered in the “Alternative minimum tax from prior year Form4626” and “Minimum tax credit carryforward” fields as summary entries. When either one of these summaryentries and new carryover detail entries are present, the summary entries will override Lines 1 and 2 ofForm 8827 and detail entries will not carry to Lines 1 and 2 but will always carry to Lines 8a and 8b.Whenever detailed entries are present, Detailed Carryover Report to Next Year will always be produced.
Controlled Group Credit Summary
This summary form has been added for the credits that can be allocated between controlled group members.The allocated credits carry automatically from Summary form to the appropriate credit forms.
Tax Product Enhancements - Worksheet View • 72
Tax Balance Summary
It is designed to be a one glance check to insure major balances and tie-ins are in agreement. The TaxBalance Summary will only print in the accountant’s copy.
New State Adjustment Category Added to Worksheet View
This new category allows access to every state’s adjustment without navigating to each individual state. Itis accessed from the federal level. There is no extra or less input data than the existing ones at the statelevel. If data is entered here, the state menu will also highlight.
Return Type Error Message for Incomplete Input
Non-1120 (1120-PC, 1120-L etc) returns require two entries to generate. The first entry is the return codeon General > Basic (Interview Form 1) and the second one is the mandatory entry on the worksheet orinterview form specific to that return type. If an entry made on General > Basic (Interview Form 1) and nocorresponding second entry is on the return specific interview form, an error message will now begenerated.
NOL Carryover
2012 will be the first year the 20 year NOL carryover period will have an affect on the program. In the past,1997 NOL would exceed the old 15 year carryover period and the program would have ignored it. For NOLoriginating in a tax year beginning after August 5, 1997 can be carried over 20 years.
Calculation History
A new Calculation History report is informational that shows the results of the prior two calculations of thetax return. It is located on the federal menu following Form 1120.
State Codes
Input for “State codes” has been changed to display only US states plus “XX” and “FC.”
1099 Questions
Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data >Miscellaneous Information (Interview Form 4). Note that this input has been standardized across all systemsand both questions are handled in the same way in every system.
Schedule M-3 Option
A new option to leave Schedule M-3 and Schedule B blank when the corporation is a member of aconsolidated return is available at Sch L/M > General and Net Income (Loss) Reconciliation (Interview Form4). This option applies to Forms 1120, 1120-PC and 1120-L.
Suppress Statements
A new section “Suppress Printing of Statements” has been added to General > Return Options (InterviewForm 4). You can now selectively suppress various statements from printing in return.
Mailsheets
Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheetsaddresses.
Tax Product Enhancements - Worksheet View • 73
NOL and Carryovers
You can now enter the detailed foreign tax credit carryover information with type ‘F’ forregular tax and type “FA” for alternative minimum tax. The carryover amount will carry toForm 1118, page 2, Schedule B, part II, Line 5.You can now enter year by year prior year minimum tax carryover detail with type “M.”You can now enter year by year net positive ACE adjustments from prior years with type “AC.”You can now enter multiple section 382 limits for NOL and AMT NOL carryover. Previously itwas limited to just one section 382 limitation. Section 382 limit also is expanded to GeneralBusiness Credit and Credit for Prior Year Minimum Tax. The multiple section 382 carryoverswill be grouped as one on the Carryover Data to the Next Year report. This new input is onWorksheet Federal > Alternative Minimum Tax > Net Positive Ace Adjustment from Prior Years(Interview Form 5).
Depreciation
New code 19 for “Mark-to-Market” has been added for Schedule M-3 purposes.New column for “Partial Disposition” has been added.Input field “Suppress automatic book adjustment” has been added. When this option is present,we assume tax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustmentfor depreciation will be made.
Rents
New column for “X if Direct Expense” has been added.
Royalty
Input fields for “X to exclude from quantity limit”, “Property ID code”, “Depreciation”, and “Depreciation -state if different” have been added.
Extensions
New input field “Extension message to print at the top of extension form” has been added.
Foreign Returns
Input for attaching Form 8858 to Forms 1120, 5471 and 8865 have been condensed into one set of forms.Use Foreign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 toanother return type.
IRS Schedule K-1 Facsimile View Forms
New Worksheets and Interview forms are available for IRS K-1 facsimiles. Enter information on these IRS K-1interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. Thesenew forms are in addition to older format.
General State
New columns have been added for “K-1 Reconciliation Print Code“ and “X NOT to Pro Forma.”
Foreign
Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have beenadded to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC).
Tax Product Enhancements - Worksheet View • 74
2 Year Comparison
We will now display the Effective and Marginal tax rates for current and prior year.
Form 6252
We will now calculate and display cumulative totals for all columns on 6252, page 2.
New Insurance Election
You can select to print the Section 831(b) election in Insurance > 1120-PC > Taxable Income Under Section834 (Interview Form PC-3).
Return Summary
The second page of the return summary now includes a line to indicate the time the return was calculated.
Consolidated/Combined Returns
Consolidated Tax Balance Summary
A new workflow tool where you can see separate companies “out of balance” which causes the consolidatedreturn to be out of balance. You can view each member company’s tax balance summary from theconsolidated return. You also can quickly identify if one member company is filing a Schedule M-1 whenSchedule M-3 is required at the consolidated level.
Consolidated Option “Accumulate Prior Year AMT Credit Carryover Detail”
This new option has been added to Consolidated > Options (Interview Form CC-1). Detailed carryover entriesare not automatically accumulated for consolidated returns. It must be requested on Consolidated >Options(Interview Form CC-1). We refer to the prior year carryover entered in the “Alternative minimum tax fromprior year Form 4626” and “Minimum tax credit carryforward” fields on Credits > 8827-Credit Prior YearMinimum Tax (Interview Form P-1A) as summary entries. The summary entries will never be accumulated.Summary entries at the consolidated level will suppress accumulation of the detailed entries even if thisoption is present.
Consolidated Treatment for Net Positive ACE Adjustment from Prior Years
Detailed carryover entries are not automatically accumulated for consolidated returns. It must be requestedon Consolidated >Options (Interview Form CC-1). Prior year positive ACE adjustment should be on aconsolidated basis, not separate company. The “Net positive ACE adjustment from prior years – override”field on Taxes > Alternative Minimum Tax > Adjustments, Preferences and Other Items (Interview Form T-3)at the consolidated level will suppress accumulation of the detailed entries if this option is present.
Option to Suppress Automatic Book Adjustment on General > Depr and Depl Options and O/R(Interview Form DP-9)
This option is not applicable at the consolidated level.
New Consolidated Statement Format
Consolidated and Combined Statements have been merged into one workpaper. The new format simplifiesthe review. It applies to the 1120 federal system only.
New Level 1 Diagnostics
12 new level 1 diagnostics have been added to alert the preparer of an “out of balance” condition in aseparate company return that could throw the consolidated return out of balance. Three new level 1
Tax Product Enhancements - Worksheet View • 75
diagnostics have been added to alert the preparer of separate company asset numbers on Interview FormsDP-2, DP-3 and DP-4 that do not have matching DP-1 numbers (Interview only).
Centralized Federal and State Consolidated Help
This help can be accessed from form level help on Consolidated > Membership Information (Interview FormCC-1). All state consolidated help can be viewed in one area.
Consolidated Option “Suppress Automatic Depreciation Adjustment Options”
No change to original Option X on Consolidated > Options (Interview Form CC-1). Option 1 is the new option.If Option X is used, the depreciation reported in consolidated taxable income is the amount reported foreach separate company’s taxable income, not the amount reported on its Form 4562. No adjustments aremade. If Option 1 is used, we will use the depreciation computed for each asset at the separate companylevel, not the separate company depreciation deduction reported in its taxable income. We will basedepreciation on the consolidated Form 4562, not the combined depreciation deduction. Automaticadjustment may still occur.
Consolidated Option “Carryover Statement Option (Division/DRE Only)”
Options 1 and 2 are new. You can now attribute all the current year loss to the parent only.
Consolidated Option “Treat Disregarded Entities as Taxable Entities”
This option on Consolidated > Options (Interview Form CC-1) will allow you to treat any Divisions orDisregarded Entities (DRE’s) as taxable entities on the consolidated return. If this option is used, the “Codefor Consolidated return” field on General > Basic Data (Interview Form 1) should not contain Division/DRE(the code “V”) When this option is used, this return should not be filed for federal or state tax purpose.
Consolidated “Options for Accumulated Totals Only Depreciation”
New Option 1 “Do NOT recompute total depreciation” has been added to Consolidated > Options (InterviewForm CC-1).
Consolidated “Form 5472 Accumulation Options”
New option “Accumulate Form 5472 and use separate company name as reporting entity” has been added toConsolidated > Options (Interview Form CC-1). This option is used to accumulate separate company name toprint on Form 5472 instead of printing the consolidated name, address and FEIN.
Consolidated “Form 8865 Accumulation Options”
New option “Accumulate Form 8865."
In consolidated returns, 8865 will accumulate from separate companies. These options have been added as:Interview Forms: CC-1 Box 146; Worksheet View: Consolidated > Options > Accumulate 8865.
Consolidated Statement “Allocation of Current Consolidated Capital Loss to MemberCorporations”
This option has been changed to allocate current consolidated capital loss to members without regard tosection 1231 gain. Only members with current capital loss should be allocated a consolidated capital loss.
Option “Print Form 8916-A for a Mixed Group”
This new option has been added to Consolidated > Mixed Groups > Life/Non-Life Mixed Group (InterviewForm CCLNL-1). Use this option to produce a consolidated version of Form 8916-A for a Mixed Group.
Tax Product Enhancements - Worksheet View • 76
State
Alaska
Added Form AK 6300 – Incentive Credits
Added Form AK 6310 – Education Credits
Arizona
Added - Schedule ACS Arizona Air Carrier Apportionment
Connecticut
Added Form CT-120 TCE - Connecticut Tax Credit Cap
District of Columbia
Added DC Unitary Combined Tax Return
Georgia
Added Form 900 - Georgia Financial Institutions Business Occupation Tax return
Added Form PT-440 - Return of Business License Taxes (county and city level filing)
Hawaii
Added Form F-1, Hawaii Franchise Tax Return
Added Form Form FP-1 - Hawaii Franchise Tax or Public Service Company Tax Install Payment Voucher
Added Form N-755 - Hawaii Application for Automatic Extension of Time to file Hawaii Franchise TaxReturn
Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit
Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing
Illinois
Added Schedule 80/20 - Related-Party Expenses
Added Schedule 4255 - Illinois Recapture of Investment Credits
Kentucky
Added Schedule KESA - Kentucky Environmental Stewardship Act Credit
Maine
Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld
Added Schedule 2P - Pass-through Entity Withholding Listing
Added Schedule 3P - List of Exempt Members
Added Form 941P-PV-ME - Maine Payment Voucher
Michigan - CIT Forms Added
MI - Form CIT 4891, Michigan Corporate Income Tax Annual Return
MI - Form CIT 4892, Michigan Corporate Income Tax Amended Return
MI - Form CIT 4893, Michigan Corporate Income Tax Small Business Alternative Credit
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MI - Form CIT 4894, Michigan Corporate Income Tax Schedule of Shareholders and Officers
MI - Form CIT 4895, Michigan Corporate Income Tax Loss Adjustment for the Small Business AlternativeCredit
MI - Form CIT 4896, Michigan Corporate Income Tax Unitary Business Group Affiliates Excluded from theReturn of Standard Taxpayers
MI - Form CIT 4897, Michigan Corporate Income Tax Data on Unitary Business Group Members
MI - Form CIT 4898, Michigan Corporate Income Tax: Non-Unitary Relationships with Flow-Through Entities
MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for UnderpaidEstimated Tax
MI - Form CIT 4900, Michigan Corporate Income Tax: Unitary Relationships with Flow-Through Entities
MI - Form CIT 4901, Michigan Corporate Income Tax E-File Annual Return Payment Voucher
MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits
MI - Form CIT 4903, Michigan Corporate Income Tax Withholding Opt-Out Schedule
MI - Form CIT 4905, Michigan Insurance Company Return for Corporate Income and Retaliatory Taxes
MI - Form CIT 4906, Michigan Insurance Company Amended Return for Corporate Income and RetaliatoryTaxes
MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions
MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions
MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule forFinancial Institutions
MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding
MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return
MI - Form FTW 4919, Michigan Schedule of Unitary Apportionment for Flow-Through Withholding
MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule
MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer
MI - Form MBT 4947, Michigan Schedule of Certificated Credits
MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding
MI - Form MBT 4974, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business TaxInsurance Filer
MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business TaxFinancial Filer
Missouri
Added Schedule NO-NJD, Missouri Small Business Deduction
Nebraska
Added Form 1120NF - Nebraska Financial Institution Tax Return
Added Form NFC - Statement of Nebraska Financial Institution Tax Credit
Added Form 1120XNF Nebraska Amended Nebraska Financial Institution Tax Return
North Carolina
Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative
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New Hampshire
Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can beautomatically included in the combined report are Corporations, S Corporations, and Partnerships.Information for non-designated members that are Fiduciaries or Individuals can also be entered manually.
Pennsylvania
Added Form REV-774 Pennsylvania Assignment of Tax Credit
South Carolina
Added Form 1101B - Bank Return Tax Return
Added Form 1104 - Savings and Loan Association Tax Return
Virginia
Added Schedule 500AB - Virginia Schedule of Related Entity – Add Backs and Exceptions
Wisconsin
Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit
Tax Product Enhancements - Worksheet View • 79
S Corporation (1120S) Product Enhancements - Worksheet ViewReturn to Table of Contents.
Federal
Schedule M-3 (Form 1120)
55 new interactive Schedule M-3 diagnostics have been added.
Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line.
Form 5452
A new worksheet for figuring current year earnings and profits has been added.
Form 6765
A new election has been added where you can elect to not reduce the R&D credit and also to not carry thecredit to other deductions on page 1 of the return.
Form 8810
A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list eachmember of the specified aggregate group.
Controlled Group Credit Summary
This summary form has been added for the credits that can be allocated between controlled group members.The allocated credits carry automatically from Summary form to the appropriate credit forms.
Calculation History
A new worksheet that will display the calculated amounts for all income and deduction items for the past 4return calculations.
New State Adjustment Category Added to Worksheet View
This new category allows access to every state’s adjustment without navigating to each individual state. Itis accessed from the federal level. There is no extra or less input data than the existing ones at the statelevel. If data is entered here, the state menu will also highlight.
Calculation History
A new Calculation History report is informational that shows the results of the prior two calculations of thetax return. It is located on the federal menu following Form 1120.
State Codes
Input for “State codes” has been changed to display only US states plus “XX” and “FC.”
1099 Questions
Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data >Miscellaneous Information (Interview Form 4). Note that this input has been standardized across all systemsand both questions are handled in the same way in every system.
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Suppress Statements
A new section “Suppress Printing of Statements” has been added to General > Return Options (InterviewForm 4). You can now selectively suppress various statements from printing in return.
Mailsheets
Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheetsaddresses.
Schedule K-1
A new option is available in General > Return Options > Processing Options (Interview Form 2) to print theshareholder name (rather than number) at the top of each schedule K-1.
Depreciation
New code 19 for “Mark-to-Market” has been added for Schedule M-3 purposes.
New column for “Partial Disposition” has been added.
Input field “Suppress automatic book adjustment” has been added. When this option is present, we assumetax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustment for depreciation will bemade.
Rents
New column for “X if Direct Expense” has been added.
Royalty
Input fields for “X to exclude from quantity limit”, “Property ID code”, “Depreciation”, and “Depreciation -state if different” have been added.
Extensions
New input field “Extension message to print at the top of extension form” has been added.
Foreign Returns
Input for attaching Form 8858 to Forms 1120, 5471 and 8865 have been condensed into one set of forms.Use Foreign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 toanother return type.
IRS Schedule K-1 Facsimile View Forms
New Worksheets and Interview forms are available for IRS K-1 facsimiles. Enter information on these IRS K-1interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. Thesenew forms are in addition to the older format.
General State
New columns have been added for “K-1 Reconciliation Print Code“ and “X NOT to Pro Forma.”
Foreign
Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have beenadded to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC).
Form 6252
We will now calculate and display cumulative totals for all columns on 6252, page 2.
Tax Product Enhancements - Worksheet View • 81
Return Summary
The second page of the return summary now includes a line to indicate the time the return was calculated.
State
Alaska
Added Form AK 6300 – Incentive Credits
Added Form AK 6310 – Education Credits
Arizona
Added - Schedule ACS Arizona Air Carrier Apportionment
Georgia
Added Form 900 - Georgia Financial Institutions Business Occupation Tax return
Added Form PT-440 - Return of Business License Taxes (county and city level filing)
Hawaii
Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit
Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing
Illinois
Added Schedule 80/20 - Related-Party Expenses
Added Schedule 4255 - Illinois Recapture of Investment Credits
Kentucky
Added Schedule KESA - Kentucky Environmental Stewardship Act Credit
Maine
Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld
Added Schedule 2P - Pass-through Entity Withholding Listing
Added Schedule 3P - List of Exempt Members
Added Form 941P-PV-ME - Maine Payment Voucher
Michigan - CIT Forms Added
MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for UnderpaidEstimated Tax
MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits
MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions
MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions
MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule forFinancial Institutions
MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding
MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return
MI - Form FTW 4919 Michigan Schedule of Unitary Apportionment for Flow-Through Withholding
Tax Product Enhancements - Worksheet View • 82
MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule
MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer
MI - Form MBT 4947, Michigan Schedule of Certificated Credits
MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding
MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business TaxFinancial Filer
Nebraska
Added Form 1120XNF Nebraska Amended Financial Institution Tax Return
North Carolina
Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative
New Hampshire
Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can beautomatically included in the combined report are Corporations, S Corporations, and Partnerships.Information for non-designated members that are Fiduciaries or Individuals can also be entered manually.
Pennsylvania
Added Form REV-774 Pennsylvania Assignment of Tax Credit
Wisconsin
Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit
Tax Product Enhancements - Worksheet View • 83
Employee Benefit Plan (5500) Product Enhancements - Worksheet ViewReturn to Table of Contents.
E-fileForm 8955-SSA – Spring 2013
Tax Product Enhancements - Worksheet View • 84
Fiduciary (1041) Product Enhancements - Worksheet ViewReturn to Table of Contents.
General > Basic Data > Type of Entity
Input fields have been adjusted to enter entity type F to prepare form 1041-QFT, Qualified Funeral Trust.
General > Basic Data > Partial grantor trust
Input field indicates a Partial Grantor Trust is to be prepared.
General > Basic Data > Perpetual care fund
Input field has been added to indicate a perpetual care fund.
General > Return Options/Miscellaneous Options > Print beneficiary name rather than numberon schedule K-1
Input field has been added to print the beneficiary name instead of number on the federal Schedule K-1.
Beneficiaries / Distribution Options > Number of gravesites and Income distribution
Input fields have been added to indicate the number of gravesites and income distribution for a perpetualcare fund.
New or Modified Federal FormsForm 1041-QFT, U.S. Income Tax Return for a Qualified Funeral Trust has been added.
Form 1041, Perpetual Care Fund modifications have been added to form 1041.
Forms Partial Grantor Trust, Statement of Grantor Tax Items and all applicable supporting forms andstatements have been added for the grantor portion of a Partial Grantor Trust.
New State Forms
New Hampshire
NH-1041 and all supporting forms and schedules have been added
Texas
Texas Franchise Tax report and all supporting forms and schedules have been added
Tax Product Enhancements - Worksheet View • 85
Exempt (990) Product Enhancements - Worksheet ViewReturn to Table of Contents.
There were no changes to Worksheet View.
Tax Product Enhancements - Worksheet View • 86
Estate and Gift (706/709) Product Enhancements - Worksheet ViewReturn to Table of Contents.
TennesseeAdding TN Form INH 301, Inheritance Tax Return
Adding TN Form INH 302, Short Form Inheritance Tax Return
Adding TN Form INH 304, Application for Extension of Time to File Estate Tax Return
Tax Product Enhancements - Worksheet View • 87
Issues AddressedReturn to Table of Contents.
Issues identified for the following ProSystem fx Suite products and modules were resolved and included inrelease 2012-1.0.
Correspondence ManagerTransmittal letters for 1040X returns now reflect paper filing instructions. These amendedreturns cannot be electronically filed. (49601)
TaxA performance issue when running On Screen Display service on a Levono laptop has beenresolved. (46420)Pressing Page Down on the keyboard numerous times while working in an IRS-K1 form no longercauses ProSystem fx Tax to close or freeze unexpectedly. (51032)
Note: Organizer forms could experience font related problems when some print drivers are used.When printing Organizers to an HP Laserjet 9000 or 9050, we recommend using a PCL6 printer driverto prevent font-related issues. This print issue will be addressed in a future release. (14642)
Issues Addressed • 88