ProSystem fx Tax (SaaS) / Release Notes. March Contact and Support Information 2

Transcription

1 ProSystem fx Tax (SaaS) / Release Notes March 2013 Contact and Support Information 2 Technology Updates 3 Electronic Filing Electronic Filing 3 Product Updates 4 Individual (1040) Product Updates 4 Partnership (1065) Product Updates 10 Corporation (1120) Product Updates 12 S Corporation (1120S) Product Updates 16 Fiduciary (1041) Product Updates 21 Exempt Organization (990) Product Updates 23 Upcoming Releases 24 Individual (1040) Product Updates 24 S Corporation (1120S) Product Updates 24 Fiduciary (1041) Product Updates 24 Contents 1

2 Contact and Support Information Return to Table of Contents. You can find product and account information by visiting Customer Support online at In addition to product and account information, the Customer Support site offers answers to our most frequently asked questions, forms release status, training videos, and Windows compatibility with each ProSystem fx product area. The following Web site provides important information about the features and updates included in all ProSystem fx Tax (SaaS) releases: Visit the Web page to view the current status of our SaaS applications. The Application Status Web page is updated every 15 minutes. You may visit at any time, even when Support is closed. Go to Support.CCH.com/Contact to find a list of options for contacting Customer Support. This site also includes a link to the ProSystem fx Suite Support Calendar. Contact and Support Information 2

3 Technology Updates Return to Table of Contents. Electronic Filing Please review the Electronic Filing Status System as soon as possible to locate returns that were stopped by CCH due to schema validation errors. As of this release, we have resolved most identified electronic filing issues that were causing these schema validation errors. To determine if your returns are affected, open ProSystem fx Electronic Filing Status, select Not Accepted > Stopped - CCH Reviewing > Schema Validation Error on the e-filing Status tab, and then click Go. Important! You must re-calculate, re-export, and re-submit stopped returns for transmission. Returns that were stopped due to schema validation errors are not considered timely filed. In addition to those previously announced, the following state product is approved and available for electronic filing submission: Partnership Alabama Form PPT for Business Privilege Tax Return & Annual Report 2011 Electronic Filing Corporation and S Corporation Updates have been made for Michigan CIT. Technology Updates 3

4 Product Updates Individual (1040) Product Updates Return to Table of Contents Federal AMT S Corporation Basis Limitation Worksheet. Line 8 calculates as the lesser of Lines 1 through 7 or the difference between the original debt amount and the debt basis using AMT entries. Child Tax Credit Worksheet. The artwork has been revised for Line 11 to indicate Form 5695, Part I, rather than Part II. Extra Report. The paragraph indicating that the taxpayer will be 70 1/2 next year and must start withdrawing from a qualified plan references April 15, Form When the farm optional method and/or the non-farm optional method at the bottom of Schedule SE, Page 2, are used, updated ranges will be referenced for the calculation of the net self employment earnings that are a part of Form 1040, Line 29, (self-employed health insurance). Form Disqualifying diagnostic only counts forms that are printed and included in the efile. Form 8582-CR. The amount of the Empowerment Zone Employment Credit patrons credit is included on Form 8582-CR when the activity that the credit is associated with is passive. Form The transmittal letter does not include mailing instructions when there is a refund on the form and it is not printed. Form Line 12 is limited by the amount of credit on Form 1116, Line 30. Line 12 tentative credit amount is limited to the total of amounts on Line 11. Letters and Filing Instructions. The option to give the date to return Form 8879 will no longer apply when E-Sign is elected. Schedule E, page 1. When there is state if different depreciation for the nonresident state and the resident state, the nonresident state income/loss calculation will use nonresident state values for depreciation that is excluded because the ownership is less than 100%. Schedule J. The amount of farm income calculated to be the optimal amount on the Schedule J Optimization Worksheet is adjusted to be evenly divisible by 3. Tax Equalization. Maryland Tax Equalization, Line 53, Column 2, calculates even if the Maryland return is not actually present in the return, and Maryland is selected on the Foreign, Tax Equalization > State Line Adjustments, Options and Overrides > State code (Interview Form TE-10, Box 30). Tax Equalization, FICA/Medicare Worksheet. 401K contributions entered on Foreign > Expatriate Wages > Wages (Interview Form EXP- 1, Box 73) are included in the FICA adjustments (pre-tax deductions). Amounts entered for hypothetical FICA/Medicare wages - override on Foreign > Tax Equalization > Reconciliation and Cash Flow (Interview Form TE-3, Boxes 33 and 34) are reported as the hypothetical Actual taxable Social Security wages. Product Updates 4

5 Electronic Filing Form 8865 Batch extension. The batch extension program will check for valid ZIP codes within the taxpayer's state. Diagnostic Disqualifying diagnostic issues when 2210, Part II is blank. Form Disqualifying diagnostic will issue when the category of filer is 3 and the required statement is not present. Form Disqualifying diagnostic no longer issues for the spouse's version of Form Form Disqualifying diagnostic issues when there are more than two of these forms present in the return, the federal return is not being electronically filed, but the state return(s) are being electronically filed. Form Disqualifying diagnostic issues when a phone number only contains special characters. Form 8825 attachment to Form 8865, Line 21, will now include Line 18b in the total. Arizona Electronic Filing Disqualifying diagnostic issues when negative amounts are present on Form 323. Disqualifying diagnostic issues when the form is missing the name and/or social security number of the spouse receiving more than half of the exemption and/or the spouse receiving less than half of the exemption. Government form overrides cannot be used to generate Form 202. Using government form overrides will result is incomplete information. Disqualifying diagnostic issues when the Head of Household filing status is selected but the first and last name of the qualifying dependent is missing or invalid on Form 140, Form 140PY or Form 140NR. California A California net operating loss with a carryover of zero will correctly pro forma to next year when Form 3805V is not generated. SBE expenses that are limited on Form 3801 will not flow to Schedule CA. California Electronic Filing Disqualifying diagnostic issues to prevent a schema validation error when the SSN is not entered for an alimony recipient. Disqualifying diagnostic issues to prevent a schema validation error when only the last name is entered for the executor/guardian. Disqualifying diagnostic issues to prevent a schema validation error when a CA corporation number is entered incorrectly for Form 592-B. Disqualifying diagnostic issues to prevent reject X when a negative net operating loss is present on Form 3805V. Colorado Disqualify diagnostic issues to prevent duplicate carryover codes for Form CO Product Updates 5

6 Connecticut Diagnostic issues to prevent the export of a Connecticut return with a Sch CT-EITC if Line 6, W-2 and 1099 information, does not contain a valid employer or payer's federal ID number. Diagnostic issues if the Schedule CT-SI Employee Apportionment Worksheet does not use days as the basis. Illinois Form IL-1040, Line 1, Federal AGI, will be modified by the amount of current year NOL carried back on the Federal return. Disqualifying diagnostic will not prevent electronic filing in this situation. Schedule NR, Line 33, Column B, will equal column A. Illinois Electronic Filing Disqualifying diagnostic will issue to prevent electronic filing when the 1099-G does not have the recipient's name or SSN. Form IL-2210, Line 9b, required installment will be limited to the greater of the calculated amount and 0. Indiana Form IT-40PNR, Schedule A, Line 20, includes the federal NOL deduction when a state bonus depreciation adjustment - override has been entered on the Indiana Income/Deductions > Tax Add-Back > State bonus depreciation adjustment - override (Interview Form IN2, Boxes 52 and/or 53). Indiana Electronic Filing Disqualifying diagnostic issues when the paid preparer identification number is not a PTIN. Disqualifying diagnostic issues when Line 10 of Form IT-40, Schedule 2, or Form IT-40PNR, Schedule C, is greater than zero but Federal Form IRS-1099G has been "F" coded. Kansas Electronic Filing The return will be transmitted to Kansas when a 2010 distribution with the 2nd year amount of the in plan rollover to a designated Roth account that was not taxed in 2010 is present. Kentucky Electronic Filing Diagnostic issues when a Kentucky Schedule J, Line 2, exceeds the Federal Schedule J elected farm income. Maine Diagnostics and do not issue at the same time in the return. Maryland Electronic Filing Disqualifying diagnostic issues if the recipient name is missing from a 1099-R attached to the Maryland electronic return. Disqualifying diagnostic issues if Form 502, Line 29, local tax, does not equal Line 21, taxable net income, multiplied by the local tax rate, and gross income is above the minimum filing requirement. Massachusetts Schedule Y, Line 1, calculates correctly when educator expenses are tied to Form Product Updates 6

7 Massachusetts Electronic Filing Disqualifying diagnostic does not issue when the EIC credit is correctly taken with no qualifying children. Michigan - Michigan Cities The phone number on form CF 1040 fits when a maximum length phone number is entered. Nebraska The amount on Form 1040N, Line 33, is filled with the amount from Form 1040N, Schedule III, Line 75, when the return has been marked as a part-year resident. Nebraska Electronic Filing Diagnostic issues when Form 1040N, Line 17, does not equal Form 1040N, Schedule II, Line 59. Disqualifying diagnostic issues when the tax due and paid to another state has not been entered with the adjusted gross income taxed by the other state. This prevents reject S Disqualifying diagnostic issues when Form 1040N, Line 13, does not equal 1040N, Schedule I, Line 58. This prevents reject F1040N Disqualifying diagnostic issues when Form 3800N, Line 2, does not equal the sum of Form 1040N, Lines 19, 20, 21, 22, 24, and 25. This prevents reject F3800N Disqualifying diagnostic issues when Form 1040N, Schedule I, Line 45, is not equal to Line 45a minus Line 45b. This prevents reject S Disqualifying diagnostic issues when an amount is present on Form 3800N, Line 4, for the 775 Credit, but the share of credit amount is missing from Line 15. This prevents reject F3800N Zero is a valid entry for NE receipts on Form 1065-SN. New Jersey When indicating the taxpayer is eligible and filing for the 2012 homestead benefit, Line 37c, is left blank and Line 38 reflects the taxable income from Line 36 of the NJ New York Electronic Filing Disqualifying diagnostic issues when New York state withholding is equal to New York city withholding on a W-2. North Carolina Form 400-TC, Line 6, prints zero if the amount is less than zero. The calculation of credit for income tax paid to another state or country on Form 400-TC, Line 1, includes the adjustment for net business income that is considered passive income from Form D-400, Line 48. North Dakota Distributive share of income from a K-1 populates on Schedule WTH. North Dakota Electronic Filing Disqualifying diagnostic issues when part-year dates of residency are missing on Form ND-1NR. Returns with other state withholding will not reject when processed by North Dakota. Product Updates 7

8 The North Dakota return will not reject when there is zero tax liability on Form ND1, Line 20, and a credit is present on Schedule ND-1TC. Ohio School district return voucher SD 40P will print for school district The Form IT40P extension payment voucher will print in the extension copy of the return. Ohio Electronic Filing Disqualifying diagnostic issues when Form ITDA does not contain the city and state or country of abode. Oregon Passive rental losses no longer are added back as additions when the losses are disallowed on the federal return. Pennsylvania Schedule NRH, Page 2, Lines 1-3, Column C, does not calculate a percentage when no amounts are present in Columns A or B. Schedules RK-1 and NRK-1 include royalty income. Updated REV-677 to populate the Reason for Authorization field. Updated spouse forms to not print when taxpayer or spouse is deceased and spouse has no taxable income in Pennsylvania. Pennsylvania - Pennsylvania Cities CLGS-32-1, Line 15, will automatically calculate if a code of 7 is chosen as overpayment code together with estimate code of 1 or 3 in PAC 2. Pennsylvania Electronic Filing Disqualifying diagnostic issues when Schedule C has missing address information. Disqualifying diagnostic does not issue when spouse Schedule O is present with no amounts in the spouse column. South Carolina Form SC 1040, out-of-state income\losses from a passive partnership, correctly flow to Line 3b or Line 3h when Form SC8582 isn't present in the return. Tennessee Electronic Filing Electronic filing is available for multiple TN LLCs and LLC extensions. Disqualifying diagnostic is disabled. Utah Disqualifying diagnostic issues when Form TC-40C, Line 7, does not equal the taxpayer retirement income amount. Utah Electronic Filing Diagnostic displays direct deposit bank account information. Product Updates 8

9 Virginia If a Form 2555 deduction exists on the Federal 1040, Line 36, it will also carry to VA Schedule of Income, Line 6. Product Updates 9

10 Partnership (1065) Product Updates Return to Table of Contents Federal An new option has been added to Worksheet L/M-1/M-2/M-3 > Schedule M-3 > General and Net Income (loss) Reconciliation > Line 8 (Interview Form L-5, Box 57) entitled "Net other income (loss) items with no differences against expenses - override" This new option allows you to (separately) override income detail items, and (separately) override loss/deduction detail items as shown on the summary statement for other items with no differences line of Schedule M-3. Otherwise (when this option is not selected), you can override BOTH income and loss/deduction detail items together at the same time by simply entering the income override (without having to also enter the loss/deduction override) on the Worksheet L/M-1/M-2/M- 3 > Income (Loss) Items > Line 29 (Interview Form L-6, Box 160). New input has been added to the worksheet Income/Deductions > Like Kind Exchange > Supplemental Information > Line 5 (Interview Form D-6, Box 95) labeled "X to limit net liabilities assumed by other party." Use of this option affects Lines 15 and 18 of Form See the online help for more details. Recognized capital gain from like-kind exchange coded as non-portfolio is now carried to the other income (loss) line of Schedule K. Schedule K-1, Other Deductions calculation, is updated for a rounding issue. The US Master Tax Guide link for Form 1065, Page 1, Line 12, is updated. Electronic Filing Form 7004, Line 5a, for tax year is now produced for batch extension filing. Electronic Filing Diagnostic for Form 8082 will no longer issue in error when a foreign address is correct on Interview Form O-1. Alabama A menu update is made for the K-1 Reconciliation form. California Form 540NR, Other Credits statement calculations, are updated. Form 8825, Lines 14 and 15, are now subject to the personal use percentage when options V or L are selected on Income / Deductions > Rent and Royalty > Option to allocate expenses (Interview Form E-1, Box 41). The statement for Form 568, Page 6, Line 13, is now subject to apportionment and matches the amount on Line 13. California - Electronic Filing California schema validation error resolved when Schedule R1, alternate method is selected with a blank Part B. Illinois - Electronic Filing Diagnostic is added to prevent rejections from business rule IL1120B Product Updates 10

11 Kentucky Cities The letters for Lexington Form 228 and Form 228S will now always generate whenever the respective form is present. Michigan - Grand Rapids Schedule B2, Column 4, now equals Column 2 as dividends are nontaxable for nonresidents. Schedule B3, Column 5, now includes the portion that can be excluded for corporate partners, if applicable. Schedule C, Column 2, is now 100% for partners that are partnerships. Schedule K-1, Line 1, Column C, is now multiplied by the Grand Rapids business allocation percentage on Line C. Mississippi Electronic Filing A numeric partner percentage is required for Mississippi electronic filing purposes. Diagnostic is now issued for any missing partner percentages. New York Form POA-1 now includes the signing person's name and title on Page 2. New York - Electronic Filing New York validation error resolved when IT-604, Lines 11 or 46, exceed 1.0. Pennsylvania The instruction guide is updated to include the five Pennsylvania credits that are new for Pennsylvania - Electronic Filing Adjustments are made to round up the profit share, loss share and owner capital rates to six decimal places since Pennsylvania only allows six on Schedules RK1 and NRK1. Rhode Island Form RI-1065 tax is now included in the state accrual of taxes on Form 1065, Page 1, Line 14, and the balance sheet. Utah - Electronic Filing Diagnostic for Schedule J is updated for returns where the apportionment factor override is present. Product Updates 11

12 Corporation (1120) Product Updates Return to Table of Contents California Combined The program has been updated to apply the correct limitations on form 3805Z, worksheet II, when Enterprise Zone codes 97 or 98 are used. Michigan CIT Form 4891, Line 25, will no longer show NOL (net operating loss) from a prior MBT period. CIT Form 4891, UBG return, Line 9(h), will now mark, and Line 9(k) will populate with 100%. CIT Form 4897 will now show the sales and proration amounts for all the companies that are protected by Public Law MBT Form 4568, Line 39, will now refer to Form 4573 fiscal year return version. Small fonts have been enabled on all Corporate Income Tax (CIT) forms to prevent larger numbers from rounding out. Worksheet View input Michigan > General (Fiscal MBT) will now correspond to the correct interview form box (MBT1, Box 43) Federal New input has been added to the worksheet Income/Deductions > Like Kind Exchange > Supplemental Information > Line 5 (Interview Form D-6, Box 95) labeled "X to limit net liabilities assumed by other party." Use of this option affects Lines 15 and 18 of Form See the online help for more details. Consolidation Combined/Consolidated returns will no longer retain corporation name and identification information from parent and subsidiary on certain forms, when inter-company apportionment elimination is entered at the consolidated level. Electronic Filing Returns will no longer stop for a schema validation error when an invalid character is only entered on Form 926, Line 17b. Alabama Electronic Filing Diagnostic added to make sure all subsidiary returns still contain the proper "proforma return" filing status. Diagnostic for Form 20C will now check for filing the "consolidatedfilingindicator" in the electronic file and verify the proper PDF attachments are made. Arkansas Electronic Filing Form 1100CT has been revised to omit form 110CT, Page 2, from the electronic file when designated as a type 1 file on Form 1100CT, Page 1, this will prevent reject code Product Updates 12

13 Form 1100CT, Page 2, Line 5, has been revised to be included in the electronic file with the correct format to prevent schema validation rejections. Form 1120CT, Schedule A, has been revised to excluded from the electronic file if the entity has been identified as a filing status 1 - Corporation operating only in Arkansas on Form 1120CT, Page 1. Form 620-EXT has been revised to omit information from the electronic file applicable to the extension, when the extension is active and the return is being electronically files. Delaware - Electronic Filing The Delaware electronic filing has been revised so that there is no longer an error message when exporting a consolidated return when DE is in the parent or sub. Georgia Extension filing instructions will correctly indicate that Form 600 or 600S has been extended when electronic funds transfer has been selected. Extension filing instructions will correctly indicate that Form 600 or 600S has been extended when no tax is due. Hawaii Form D-1, Line 16, ordinary gains from installment sales, has been revised to include overrides entered for Federal Form 6252, Line 25, ordinary income under recapture. Illinois Schedule NLD Page 2, Schedule of Net Operating Losses continued, will no longer show information for a loss not included on Schedule NLD Page 1. Schedule NLD, Schedule of Net Operating Losses, will no longer print when the Tax Year End is before 12/31/12. Illinois Combined Form IL-1120, Line 31, business income or loss allocatable to Illinois, will match Schedule UB, Step 4, Line 5, Column D, and Line 34, base income or loss allocatable to Illinois, will match Schedule UB, Step 4, Line 10, Column D. Illinois - Electronic Filing A diagnostic was added to no longer allow Schedule UB NLD for electronic filing. Kentucky Schedule TCS will now generate when the Energy Efficiency Products Tax Credit (Form 5695-K) and/or the Energy Star Home Credit (Form 8908-K) are the only credits in the return. When the Lexington Extension is unlocked, it will now reflect its unlocked status on the Extension Report. Louisiana Form 620-EXT-V has been added to allow the mailing of payments for amounts due with extension. Transmittal letters have also been revised to include the amount due to be mailed, when electronic funds transfer has not been selected. Form 620, Page 10, Line 8 and Line 9 statement references, have been revised to print on the applicable e line when present in the return. Product Updates 13

14 Form 624 has been revised to print when present and active in the return. Louisiana - Electronic Filing Form CIFT-620EX has been revised to print when exporting extensions. Letters and Filing instructions for form 620-EXT have been revised to require filing via the state of Louisiana Web site when the amount due is $5000 or greater. Maine - Electronic Filing Electronic filing diagnostic will now issue when direct deposit is indicated for refunds over $10, Electronic filing diagnostic will now issue when direct deposit is indicated in a return with no refund. Electronic filing diagnostic will now issue when financial transaction information is missing from General > Basic Data > Direct Deposit/Electronic Funds Withdrawal (Interview Form BNK-1 Boxes 30 through 39). Electronic filing diagnostic now includes the Capital Investment Credit Worksheet in the list of forms that are not included in the electronic return file. Maryland Form 500, Line 5, will now include FDS NOL amounts. Massachusetts - Electronic Filing Diagnostic will no longer issue when Schedule E-2, Lines 5c and 5d, are blank and Line 5e is not. Mississippi Form , Reporting Entity FEIN will now only fill if the return is part of a combined group. Mississippi contributions deduction included on Form , Line 14 will now compute accurately in one calculation of the return. Mississippi - Electronic Filing Disqualifying extension diagnostic will now issue when affiliated members have been included on the extension without a payment amount. North Dakota - Electronic Filing Disqualifying diagnostic now issues when the routing transit number is blank. Electronic filing instructions for mailing Form 40-EPV will no longer refer to the tax year since the tax year is already given in the filing instructions for each return. Tennessee Extension Form FAE173 financial transaction information now appears correctly in the electronic return file, transmittal letters and diagnostics when there is a minimum amount due of $100 in the return. Wisconsin In Wisconsin combined group member returns with apportionment entered on the Wisconsin Interview Forms and Worksheets and no apportionment on the federal apportionment forms, the apportionment entries will be recognized when determining if an apportionment input has been made for Wisconsin. Product Updates 14

15 Wisconsin - Electronic Filing A condition has been added for the electronic filing of combined groups that have the name and FEIN of the designated agent input on the Wisconsin > Combined Return > Reconciliation of Federal Taxable Income worksheet or Interview Form CC-WI1, Boxes 30 and 31. If the FEIN entered as designated agent does not match the FEIN of any parent or subsidiary returns, diagnostic will issue and the company information from the consolidating return will be sent in the electronic file. Conditions have been added to Wisconsin returns with the option to automatically generate PDF files of statements from Schedule V, Lines 8 and 9, and Schedule W, Lines 9 and 10, selected to prevent the possibility of the returns being stopped for PDF errors after being exported for electronic filing. In Wisconsin corporation returns which are using direct debit/deposit to withdraw or transmit the balance due or refund, diagnostic will issue if no bank routing transmit number is entered on either the Federal > General > Basic Data > Direct Deposit/Refund worksheet section or Interview Form BNK-1, Box 35. In Wisconsin returns with Form 5 and Schedule RT, diagnostic will activate if Schedule RT is active but there is no expense information input for Schedule RT, Part I. Product Updates 15

16 S Corporation (1120S) Product Updates Return to Table of Contents Federal An new option has been added to Worksheet L/M-1/M-2/M-3 > Schedule M-3 > General and Net Income (loss) Reconciliation > Line 8 (Interview Form L-5, Box 57) entitled "Net other income (loss) items with no differences against expenses - override" This new option allows you to (separately) override income detail items, and (separately) override loss/deduction detail items as shown on the summary statement for other items with no differences Line of Schedule M-3. Otherwise (when this option is not selected), you can override BOTH income and loss/deduction detail items together at the same time by simply entering the income override (without having to also enter the loss/deduction override) on the Worksheet L/M-1/M-2/M- 3 > Income (Loss) Items > Line 29 (Interview Form L-6, box 160). New input has been added to the worksheet Income/Deductions > Like Kind Exchange > Supplemental Information > Line 5 (Interview Form D-6, Box 95) labeled "X to limit net liabilities assumed by other party." Use of this option affects Lines 15 and 18 of Form See the online help for more details. Worksheet view Partnership Passthrough > Partnership Passthrough > Tax Exempt Interest and Investment Income adjustment and Investment expense will show on correct lines when entered and switch to Interview Forms. You may now choose to NOT alphabetize "Other Deductions" on the supporting statement to Schedule M-3 by selecting Worksheet >> Sch L/M >> Schedule M-3 >> 1-General and Net Income (Loss) Reconciliation >> Do NOT combine similar descriptions (Interview Form L-5 box 56). Electronic Filing A diagnostic has been added to prevent rejection F1120S-263 when print of Form 1125A is not selected and Form 1120S, Line 2, is not equal to zero. Diagnostic will now issue to prevent a schema validation error when invalid shares of stock are entered on Form 1120S, Schedule B, Lines 5a and 5b. Diagnostics will no longer issue when an extension is produced through batch processing in Production Processing and the return is selected for electronic filing. Federal elections will no longer print in the government copy when the return is electronically filed unless the option is selected to print the full government copy of the return. The ERO date signed is now available in Worksheet View for 1120S returns. Alabama - Electronic Filing Form 20S, Schedule K, Line 4 will put the amount after adjustments in the electronic file instead of the amount before adjustments. Arkansas - Electronic Filing Form 620-EXT has been revised to omit information from the electronic file applicable to the extension, when the extension is active and the return is being electronically files. Connecticut New input has been added on the Connecticut Composite Information worksheet or Interview Form CT1, box 48 to suppress Form CT K-1T for electronically filed returns. Product Updates 16

17 Shareholders can now be included or excluded from the CT-1065/CT1120SI composite tax return Schedule B using input on Federal Shareholder State information worksheet or Interview Form STK-1. The change of Address check box on form CT-1065/CT-1120SI is now blank when the change affects the federal return only. Please use the Common State General Information worksheet and select "no name/address change" or enter a code "4" on Interview form GEN-1, box 72. Georgia Extension filing instructions and transmittal letters will refer to IT-560C Composite and use the correct filing address. Form IT-CR, Composite Income Tax, will now print when no tax is calculated and the form is forced. Schedule K-1 Equivalent, addition for depreciation adjustment will use special allocation code "12253" and subtraction for depreciation adjustment will use special allocation code "12255." Hawaii If a special allocation is used for Hawaii Schedule K-1, Line 1(c), Ordinary Income Attributable to Elsewhere, this has been revised to be zero when the same Line on Hawaii Schedule K is zero. Illinois When Form IL-1023-C, Line 3, taxable income, is different than Line 1c plus 2c, a diagnostic will issue. Schedule 1299-A, Tax Subtractions and Credits, will show credits calculated for qualified unemployed veterans on Line 49, Veteran Credit. Schedule 4255, Recapture of Investment Tax Credits, Lines 14 (amount from other 4255 filed this year) and 15 (distributive share of recapture from partnerships and s corporations) will show a 0 when the column is being used and the Line has no amount. Schedule NLD, Schedule of Net Operating Losses, will no longer print when no loss is being taken. Indiana Form IT-20S has been revised to include new credit codes: 839 EDGE Job Retention Credit, School Scholarship Credit and New Employee Credit. Iowa Entries for Parent's name and Parent's FEIN number entered on Common State Data/Consolidated/Combined Return Information or on Interview Form Gen-2 will now carry to the Name of Consolidated Parent and Parent's FEIN fields in the Filing Status section of Form 1120F. The Date Sold or Disposed field on IA 4562A will not be completed based on depreciation entries if the automatic sale feature is not used. The Iowa Form IA4562A has been updated so that Columns G and J will include the Federal and Iowa Section 179 amounts that have been added this year.. The Separate Iowa/Consolidated Federal Filing Status will now be checked on Form 1120F when the federal return is consolidated. Kansas Form KW-7 and KW-7S now reflect the correct number of total schedules and additional schedules on the KW-7 and KW-7S. Product Updates 17

18 Kentucky Form 740NP-WH, Line 6 will no longer subtract the apportioned share of interest expense on investment debts (Kentucky Schedule K-1, Line 11(a)) in its calculation. Form 740NP-WH can now be forced when it is not required to be filed. Form 740NP-WH will now check the "Final return" Box when the return is final. KY Schedule O-PTE, Part II, Line 8 will no longer reflect a subtraction from federal taxable income from Kentucky Schedule(s) K-1 when no subtraction is needed. Schedule NP Column (e) is now the computed tax net of applicable credits. Kentucky Cities Lexington's Extension will no longer lock until April 15th, Louisiana Filing instructions and letters have been revised to default to mailing the amount due with if the amount is less than $5000 and direct debit option is not active in the return. Filing instructions and letters have been revised to default to the text related to mailing the payment for Form CIFT-620 when the amount is less than $5000 and the option to use direct debit is not present. Form 620-EXT-V has been added to allow the mailing of payments for amounts due with extension. Transmittal letters have also been revised to include the amount due to be mailed, when electronic funds transfer has not been selected. Form 624 filing instructions have been revised to only produce when the form is active in the return. Maine - Electronic Filing Added electronic filing diagnostic for business entity type Shareholders that have an incorrectly formatted FEIN. Maryland Extension Form 510E will now pull tax amounts only from Form 510 unless Form 500 is active in the return. Maryland - Electronic Filing Disqualifying diagnostics 47242, 47243, and will now issue when Form 500UP, Line 6 amounts are not the appropriate percentage of Line 4. Disqualifying extension diagnostic will now issue when the date is more that 10 months and 15 days past the period end date. Massachusetts Massachusetts Composite Schedule D, Line 22, will now calculate at 5.25% (0.0525) down from 5.3% (0.053). Massachusetts Form 355S, Line 16, will now calculate Line 14 minus Line 15 if return has been marked as member of a unitary group with a tax year ends is different than the unitary group on Interview Form MA1, Box 40, or Massachusetts General worksheet, Basic Data section, Member's tax year ends in a different month than the unitary group field. Massachusetts Form 355S, Line 19, will now pick up the extension payment not based on income from Interview Form ST-PAY1, Box 111, worksheet Federal Payments/Penalties > Payments > State Quarterly Payments > Amount paid with extension not based on income field if return has been marked as member of a unitary group with a tax year ends is different than the unitary group on Interview Form MA1, Box 40, or Product Updates 18

19 Massachusetts General worksheet, Basic Data section, Member's tax year ends in a different month than the unitary group field. Massachusetts - Electronic Filing Diagnostic will now issue to prevent a rejection when the return is a short year return. Diagnostic will now issue to prevent a rejection from business rule F355S-195. Diagnostic will now issue when the extension is selected for electronic filing and the return is not selected for electronic and an invalid phone number has been entered for the direct debit. Minnesota Minnesota Schedule KS, Line 33 worksheet, prior year 179 calculation, 1/5th allowance will now use Minnesota apportioned amount. Minnesota - Electronic Filing Minnesota e-filing, property and payroll factor weights, will now round up to five digits after the decimal, when only one of these factors present to meet the State e-filing requirement. Mississippi Form and Form will no longer include franchise tax credits as these credits should not be passed through to shareholders. Mississippi - Electronic Filing Disqualifying diagnostic will now issue when zeros have been entered without a county for Form , Assessed value of Mississippi property. Missouri If there are shareholders excluded from Form TAX SCH, the total for Column 7, Missouri estimate tax paid, no longer comes up short. Therefore, the Form MO-1040, Line 33 amount has also been revised to include the full estimated tax payment. New Hampshire Updated the ability to limit what Individual entity to bring up to the Combined Report by input entered on New Hampshire Combined Return Worksheet, Combined Report Automated Feature Section (Interview Form NH-AFF), columns 'T/S/LLC' and 'Entity Number'. New Jersey Federal Section 179 expense on Form CBT-100, Schedule S, Line 1 will agree to the amount reported on the federal computation of taxable of income as a C corporation (limited to C corporation taxable income) rather than Form 4562 (limited to business income.) New York Lines 4, 8, and 12 of Form NYC-3A, Schedule J have been updated to use factors of 20, 60, and 20 respectively. Ohio The long menu name for the form CAT GR has been updated to reflect the correct tax years. The correct cross reference will be produced for the form CAT GR when requested. Product Updates 19

20 Oklahoma - Electronic Filing Diagnostic for Form 512-S, Page 4, Part 6, Line 5, Address at which books are kept, has been updated to also refer to General, Basic Data, State Information, location of Books address fields (Form 5, location of books fields). Oklahoma Electronic Filing for Form 512-S, Page 2, Part 3, Line 16, Column B, Other deductions, has been updated so it will not stop for Schema Validation errors. Oregon Oregon Schedule K-1 will now pick up current year credits when the amount is entered on Interview Form OR4, Boxes or worksheet Oregon Credits > Credits section. The current year credit and the carryforward will be combined as one amount on the Schedule K-1 and will use the same allocation code. South Carolina Form SC1040, Line 17, will now include composite over-payments. Forms not available for electronic filing will now print when the electronic filing is selected for the return. Product Updates 20

21 Fiduciary (1041) Product Updates Return to Table of Contents Federal Line 23 of the ESBT 8801 will now reflect AMT foreign tax credit when entered. Grantor overrides for 1231 sales and 1250 installment sales will now function separately. The credit from Form 8912 will now either be reflected on the ESBT or Form 1041, Page 2, Schedule G, Line 2d, and not on both. The ESBT depletion 65% of net income limitation calculation has been updated to reflect the ESBT taxable income. Electronic Filing Diagnostic was added to inform customers that Form 8868 cannot be filed electronically. Diagnostic will now issue requiring an EIN if Form 8941 is present in any return. The diagnostic will read as follows, "If Form 8941 is present in the return then there must be an EIN for employer reporting on line 1b of Form 8941 or the return will reject - regardless of whether or not there is a ine 1a." Diagnostic for Schedule C-EZ will no longer issue without corresponding diagnostic disallowing it from export. Reject 0060 has been resolved and returns will be processed through the taxing authority. Returns with blank City, State, and ZIP on Form 8824 will no longer receive reject Federal - Foreign Financial Assets A copy of the 8938 with only Part I assets will print multiple pages of Page 1 and only 1 Page of Page 2. Partial Grantor Trust Indirect fiduciary fees will now be properly allocated to tax exempt income. Passthrough expenses subject to the 2% limitation will no longer double. Iowa Statements for IA State Schedule D will now print the detail correctly. Kentucky Total distributions on the KY Schedule K-1 will be limited to lesser of accounting income or DNI for simple trusts. Massachusetts - Electronic Filing Massachusetts state only extensions will no longer stop for schema validation error. Michigan Grantor letter for MI will correctly display MI gain and amount being excluded for Section 271. Product Updates 21

22 Minnesota - Electronic Filing Diagnostic will now issue if the Sch EST has been suppressed while there is an amount on Line 19 of Form M2. Pennsylvania Footnotes for PA RK-1 will now be correctly attached. South Carolina Schedule K-1. State and local taxes added back on the South Carolina K-1 will not be added back to the fiduciary on the South Carolina Product Updates 22

23 Exempt Organization (990) Product Updates Return to Table of Contents Federal The custom filing instruction special paragraph for electronic filing is no longer suppressed when General Worksheet, Letters and Filing Instructions section, Line 14, or Interview Form 7, Box 51, has been checked. The Form 8827, Line 2, now pulls amount from Form 8827 worksheet, Credit for Prior Year Minimum Tax, Line 2, or Interview Form T-14, Box 41. The print position for the Schedule R, Part IV, continuation page Column 4 has been corrected. Electronic Filing The diagnostics and filing instructions no longer mention electronic filing when the General, Electronic Filing section, line 1 or Interview Form EF-1 box 30 is answered No. The electronic filing diagnostic text has been revised. It no longer mentions New York and California. The electronic filing diagnostics and have been updated to include Form 8275-R. The electronic filing diagnostic now references Interview Form EF-1, Box 40, instead of Box 39. The Form 990 electronic filing diagnostics no longer appear when the General worksheet, Electronic Filing, Line 1, or Interview Form EF-1, Box 30, is marked N. Electronic Filing The electronic filing diagnostic is now issued when the employer identification number on Foreign - Form 5471 worksheet, U.S. Filer Information section or Interview Form G-4, Box 78 is blank. The Form 8858 Schedule G for Form 5471 now contains the correct information in the electronic file for Schedule G lines 4 and 5c. California The California Form 199 Question I statement now mentions Question I instead of question J in the heading. The California electronic filling now contains the information present on Form CA199 Part I, Line 3 statement. Product Updates 23

24 Upcoming Releases Return to Table of Contents. Look for the following updates in a future release: Individual (1040) Product Updates Federal Form EIN input has been added to Credit Options and Adjustments > Flowthrough credits - Form 6478 for credits that are from a cooperative not associated with a business or farm. Form Disqualifying diagnostic issues when a foreign address is entered in a community property state return. District of Columbia Transmittal letters and filing instructions do not mention D-40 individual returns when only D-30 UBT returns are present in the DC return. S Corporation (1120S) Product Updates Louisiana Form 620, Page 10, Line 8 and Line 9 statement references, have been revised to print on the applicable line when present in the return. Fiduciary (1041) Product Updates Federal Form 8878-A will now print in all copies. Upcoming Releases 24