ProSystem fx Tax(SaaS) ContactandSupportInformation 3 2012 ... · ProSystemfxTax(SaaS) 2012-1.0...

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

http://irs.gov/

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


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.


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:


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.


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.


http://support.cch.com/supportedenvironments/operatingsystems.aspx

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.


Corporation (1120) Product UpdatesReturn to Table of Contents.



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.


Fiduciary (1041) Product UpdatesReturn to Table of Contents.



Estate & Gift (706/709) Product UpdatesReturn to Table of Contents.



Exempt Organization (990) Product UpdatesReturn to Table of Contents.



Employee Benefit Plan (5500) Product UpdatesReturn to Table of Contents.



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


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.


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.


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.


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


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


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


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.


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


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


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:



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).


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


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.


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.


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).


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.


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.


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.


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 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.


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.


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).


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.


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


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


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


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


S Corporation (1120S) Product Enhancements - Interview ViewReturn to Table of Contents.

Federal




Form 5452

New Worksheet for Figuring Current Year Earnings and Profits has been added.

Form 6765


Form 8810




Calculation History

A new worksheet that will display the calculated amounts for all income and deduction items for the past 4return calculations.


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


State Codes


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.


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


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


Royalty


Extensions


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


Foreign


Form 6252



Return Summary


State

Alaska



Arizona


Georgia



Hawaii



Illinois



Kentucky


Maine













MI - Form FTW 4919 Michigan Schedule of Unitary Apportionment for Flow-Through Withholding







Nebraska

Added Form 1120XNF Nebraska Amended Financial Institution Tax Return

North Carolina


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


Wisconsin



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.


Employee Benefit Plan (5500) Product Enhancements - Interview ViewReturn to Table of Contents.

EfileForm 8955-SSA – Spring 2013


Exempt (990) Product Enhancements - Interview ViewReturn to Table of Contents.

There were no changes to Interview View.


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 - 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.


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


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.


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.


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:



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.


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


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


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


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


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


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 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:



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



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.


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.


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.


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).


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.


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.


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.


Corporation (1120) Product Enhancements - Worksheet ViewReturn to Table of Contents.

Federal




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


Form 6765


Form 8810


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.




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.


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


State Codes


1099 Questions


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


Mailsheets



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


Royalty


Extensions


Foreign Returns


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


Foreign



2 Year Comparison

We will now display the Effective and Marginal tax rates for current and prior year.

Form 6252


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


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


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).


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.


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



Arizona


Connecticut

Added Form CT-120 TCE - Connecticut Tax Credit Cap

District of Columbia

Added DC Unitary Combined Tax Return

Georgia



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



Illinois



Kentucky


Maine






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

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 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 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 FTW 4919, Michigan Schedule of Unitary Apportionment for Flow-Through Withholding





MI - Form MBT 4974, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business TaxInsurance 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



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


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



S Corporation (1120S) Product Enhancements - Worksheet ViewReturn to Table of Contents.

Federal




Form 5452


Form 6765


Form 8810




Calculation History

A new worksheet that will display the calculated amounts for all income and deduction items for the past 4return calculations.


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


State Codes


1099 Questions



Suppress Statements


Mailsheets


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


Royalty


Extensions


Foreign Returns


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


Foreign


Form 6252



Return Summary


State

Alaska



Arizona


Georgia



Hawaii



Illinois



Kentucky


Maine













MI - Form FTW 4919 Michigan Schedule of Unitary Apportionment for Flow-Through Withholding







Nebraska

Added Form 1120XNF Nebraska Amended Financial Institution Tax Return

North Carolina


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


Wisconsin



Employee Benefit Plan (5500) Product Enhancements - Worksheet ViewReturn to Table of Contents.

E-fileForm 8955-SSA – Spring 2013


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


Exempt (990) Product Enhancements - Worksheet ViewReturn to Table of Contents.

There were no changes to Worksheet View.


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


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

ProSystem fx Tax(SaaS) ContactandSupportInformation 3 2012 ... · ProSystemfxTax(SaaS) 2012-1.0...

Documents

Transcript of ProSystem fx Tax(SaaS) ContactandSupportInformation 3 2012 ... · ProSystemfxTax(SaaS) 2012-1.0...