Release Notes

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1 ProSystem fx Tax (SaaS) Release Notes February 2013 Contact and Support Information 2 Technology Updates 3 Electronic Filing 3 Tax Update 3 Batch Extension Program - Paper Only - Individual, Corporation, S Corporation, Partnership, Fiduciary, Tax Exempt 4 Product Updates 5 Individual (1040) Product Updates 5 Partnership (1065) Product Updates 7 Corporation (1120) Product Updates 9 S Corporation (1120S) Product Updates 10 Fiduciary (1041) Product Updates 12 Exempt Organization (990) Product Updates 13 Contents 1

2 Contact and Support Information 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 Electronic Filing Qualified returns currently can be uploaded and released for transmission. Returns containing forms on the IRS delay list continue to be disqualified until the IRS provides their revisions to the electronic filing specifications. The list can be reviewed at February-or-into-March In addition to those previously announced, the following federal and state products are approved and available for electronic filing submission as noted above: Individual District of Columbia, Iowa, Louisiana, Louisiana extension, Rhode Island Corporation Florida, Louisiana, Michigan CIT, New York, New York Estimate, New York City S Corporation Florida, Iowa, Louisiana, Michigan CIT, New York, New York Estimate, New York City Partnership Alabama, Iowa, New York City Fiduciary Minnesota Tax Exempt New York Tax Update California Corporation As a result of a recent decision by the California Court of Appeals, which found that Qualified Small Business Stock gain exclusions and deferrals are unconstitutional, the FTB has discontinued use of Form 3565, Small Business Stock Questionnaire. Input for this form, California (110/100W) > Other > Small Business Stock Questionnaire (Interview Form CA18, Boxes 50 through 70) has been changed to "Inactive." Information about the court decision can be found in FTB Notice Technology Updates 3

4 Batch Extension Program - Paper Only - Individual, Corporation, S Corporation, Partnership, Fiduciary, Tax Exempt The Batch Extension program is now available for processing multiple extensions. Extensions are processed using Batch Manager > New Job > Print > First Extensions (and other menu selections). Technology Updates 4

5 Product Updates Individual (1040) Product Updates Federal Customized State Transmittal Letter. The electronic filing paragraph can be customized without lingering characters, such as a period. Form Adoption credits limited in the current year appear on the carryover report. Form The adoption credit is limited by the credit limit worksheet. Form The foreign country in the address for the account owner corresponds to the entry for each account owner on Foreign Assets > Report of Foreign Bank and Financial Accounts and Foreign Assets (Interview Form BNK-2). Letters and Filing Instructions. Electronic filing letters are prepared for the New York 204-LL when the option to use paper filing instructions is selected and the federal return is disqualified from electronic filing. Schedule B. An expand is now available on Line 7b to accommodate data entry and prevent the creation of blank sheets. Schedule C. Prior year boxes in the Automobile Expense section of Interview Form C-4 align with the appropriate descriptions. Schedule F. Diagnostic for split mileage is obsolete and has been removed. Interview Form F-4, Boxes 41 through 59 have been renumbered. Tax Projector. Projector Form 8615, Line 15, is calculated using capital gains rates if the parent and child both have qualified dividends but no capital gains and the parent's ordinary dividends are greater than child's. California Electronic Filing Disqualifying diagnostic does not issue when an amount is present on Form 3805V, Line 18 or Line 19. Electronic Filing Disqualifying Diagnostic The diagnostic now correctly references the phase-out amount of the student loan interest deduction. Form The Name Control tag is included in the electronic file for care providers that have the LAFCP (Living Abroad Foreign Care Provider) indicator. Schedule EIC. The credit amount calculated for a single taxpayer with 1 qualifying dependent and earned income of $17,090 (range of $17,050 up to $17,099) is $3,169, and not $3,171. Illinois Schedule NR, Lines 13 (taxable IRA distributions), 14 (taxable pensions and annuities), and 18 (taxable Social Security benefits) will not calculate for nonresident returns when Non/Part-Year Resident State Overrides (Interview Form ST-1) is used. Product Updates 5

6 Michigan Electronic Filing IRA distributions qualifying for a pension exclusion on Form MI-4884 populate column A (private or public) and column B (federal employer identification number). Missouri Electronic Filing The electronic file uses correct naming conventions for automatically generated PDF(s) which prevents returns landing in efile status "PDF error". New Jersey New Jersey has mandated use of 2D barcodes on extensions. As a result, the batch extension program will not support paper extensions. Electronically filed batch extensions will continue to be supported. New York Returns with NY cities and PA cities on the same Form W-2 can be filed electronically with NYS. Ohio Filing Status Comparison Report. The report has been modified to include adjustments from IT-1040, Lines 33f, 35b, 37b, and 43c. Forms IT-2210 and SD The form underpayment interest rate has changed from 4% to 3% for the entire year. Pennsylvania PSD Override Code. The PSD override code in Pennsylvania > Generic Cities > General Information now allows 6 characters. Form RCT-101. The rate on Form RCT-101, Section A, Line 18, is now Rhode Island The Form RI 1040NR exemption corresponds with the federal exemptions on Form 1040NR when filing with a status of "Other married nonresident alien." Utah Form TC-40B, Line 18, prints if input is entered for educator expense. Form TC-40B, Line 29, prints if input is entered for tuition and fees. Product Updates 6

7 Partnership (1065) Product Updates Federal Form 1065, Lines 16a and 16b, no longer increment for Form 4835 depreciation amounts. Form 1065, Page 1, Line 22 supporting statement for taxes, is no longer produced if input is not present. Form The Other Book Depreciation Small Font Detail Report now calculates the current year deduction on the ninth line of every page correctly. The Small Font Book Depreciation Detail Reports now shows the total for each department instead of showing a running total. Interview Form O-1S is now available in the Tree menu. The asset number can now be changed in Income/Deductions > Section Other Depreciation and Amortization Detail. The description of the special allocation code now displays when there is an entry on Worksheet Federal > Special Allocations > Special Allocations Detail > Allocation Code (Interview Form K-4, Box 40). Zero ending basis now proformaes to the next year beginning basis on the Partner Basis Schedule and AMT Partner Basis Schedule. Alabama Form 65, Page 3, Schedule K, Line 16, now recognizes property distributions from transfers of partner capital. Schedule K-1, Line X, Withdrawals and Distributions, now includes both property and cash distributions if both are present in the return. California The Form 592 Quarter 2 due date checkbox now checks the box for June 17, Connecticut Electronic Filing Connecticut custom filing instructions has been updated to remove the incomplete wording on transmittal and to show that the payment by check will be made to the Commissioner of Revenue services. Connecticut custom filing instructions has been updated to show the Connecticut DRS instead of the DOR. Delaware When an extension is requested for Form 200-C, the transmittal letter now displays extension information. Idaho Electronic Filing ERO PIN entries made in Office Manager -> Configure Office Group -> Electronic Filing Options -> ERO -> ERO PIN are now used in the return. Kentucky Forms 740NP-WH-P and 740NP-WH-ES are now suppressed from printing when requested from input. Product Updates 7

8 Montana Entries made on Interview Form ST-2 and Worksheet Federal -> Common State -> Nonresident K-1 are now applied to all Montana K-1's. New Hampshire Form BET-80, Lines 1 and 2, now reflect compensation amounts from Form DP-80. Ohio Form IT-4708, Schedule V, Investor Information, now uses 'Tax Amount Paid' instead of 'Income Allocated to Investor'. Oregon Custom filing instructions no longer show tax due of $150 if the entity does not do business in Oregon. Pennsylvania The Pennsylvania partnership program is updated. When book income after taxes is "0" in a prior year, the book income after taxes will be included with the 2012 to 2013 pro forma information. Texas Form , Affiliate - Section A, now prints the officer/director/member name on the first line of the form. Virginia Schedule A is now available in the Tree menu. Product Updates 8

9 Corporation (1120) Product Updates Federal The IRS phone number to call for EFTPS tax payments has been changed on Form 1120 Transmittal Letter to 1(800) The previous toll free number is used to enroll for the service and further information. Electronic Filing Returns will now print the entire government copy when PIN information is the only information entered for electronic filing. Updated disqualifying diagnostics for returns to only issue when electronic filing is selected for returns in the return configuration set or in the return. California Electronic Filing Form 3527, New Jobs Credit, will now process correctly for a California Combined Return that is being electronically filed. Kentucky Cities It will now be possible to enter information on Interview Form SDF-1, Box 80. Massachusetts The "Type or print paid preparer's name" field on Form AA-1 will print the paid preparer's name if it is available; otherwise, it will print the firm's name. Minnesota Minnesota Net Operating Loss (NOL) Schedule will now report Income years as well as Loss years. This follows Minnesota Department of Revenue example in the instructions for NOL reporting. Alternate NOL presentation to report just loss years is also available. In the Alternate NOL presentation, NOLs are tracked by the year losses originated. Alternate NOL presentation is available through Interview Form MN1 Box 85 or Worksheet View, Minnesota General NOL Options. Tennessee Electronic Filing Tennessee electronic filing diagnostic is no longer used regarding electronic payment instructions. Tennessee electronic filing diagnostic is now being issued to reflect new Tennessee electronic payment options for electronically filed returns. They are as follows: 1. Payment submitted with the e-filed return when financial transaction information is present in the return. 2. Payment made through the Electronic Funds Transfer (EFT) system on the Tennessee Department of Revenue website at " 3. Payment made by ACH Debit or ACH Credit on the Tennessee Department of Revenue website at " Utah Electronic Filing Diagnostic has been updated to check incomplete address for location of corporate books. Diagnostic has been updated to check for invalid ZIP codes on Form TC-20, Page 2, Line 3. Product Updates 9

10 S Corporation (1120S) Product Updates Federal Appropriate boxes for question 4a on Schedule B of Form 1120S will be marked automatically, when detail information is entered. Updated Form 8879S line 1 to reflect the amount on Form 1120 S, Line 1c instead of Line 1a. Electronic Filing The entire government copy of the return will print when PIN information is the only information indicated for electronic filing. Updated disqualifying diagnostics for returns to only issue when electronic filing is selected for returns in office manager or in the return. Arizona Schedule K-1NR and K-1 equivalent have been revised to no longer include an adjustment for bonus depreciation. An FAQ has been added with more information related to this change. California The AMT adjusted gain or loss will default to the federal amount when there are no corresponding state, if different depreciation entries. Connecticut Electronic Filing Updated Connecticut custom filing instructions to remove the incomplete wording on transmittal letter and to show that the payment by check will be made to the Commissioner of Revenue services. Georgia Diagnostic 23851, Other accounting method has been selected, will no longer be present in the return if Form 900, Business Occupation Tax Return, is not present. Kentucky Composite Form 740NP-WH-ES will now generate in the return, when applicable. Maine Form 941P-ME Schedule 1P apportionment percentage will now be present in the electronic return file when the apportionment factor is zero. The Schedule 1P will no longer appear in the electronic return file when there is no apportionment in the return. New Jersey New Jersey extension forms are now produced in multiple state situations. North Carolina Form CD-401S, Page 3, Sch. I, Line 3b (bonus depreciation) now fills correctly from the amount on the North Carolina - Income/Deductions worksheet, Deductions section '2011 total bonus depreciation addback amount' (Interview Form NC4, Box 100). Product Updates 10

11 Vermont Non-composite estimate payments were carrying to Form BI-471, Line 10, incorrectly. Product Updates 11

12 Fiduciary (1041) Product Updates Federal Extensions will no longer stop for schema validation error when the practitioner pin is not entered in the return or return configuration set. Form 1041-V will no longer print when there is not a balance due when exporting the return for electronic filing. Electronic Filing Forms not available for electronic filing will include the corresponding header diagnostic indicating electronic filing has been disqualified. North Dakota Column 5 of Form 38, page 3, will now reflect state and local taxes not being added back in for North Dakota. Product Updates 12

13 Exempt Organization (990) Product Updates New Jersey CRI- 200, Page 4, Line A3b, now includes 990-PF Page 1, Lines 3 and 4, instead of CRI- 200, Page 4, Line A3e. Interview Form NJ7 is now fully functional. Product Updates 13

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