release bulletin - support - cch.com

ProSystem fx Tax (SaaS)

2012-3.1/2011-5.6

Release Notes

March 2013

Contents • 1

Contact and Support Information 2

Technology Updates 3

2012 Electronic Filing 3

2012 Tax Updates 3

2011 Electronic Filing 3

2011 Tax Updates 3

Product Updates 5

Individual (1040) Product Updates 5

Partnership (1065) Product Updates 9

Corporation (1120) Product Updates 12

S Corporation (1120S) Product Updates 15

Fiduciary (1041) Product Updates 19

Exempt Organization (990) Product Updates 20

Employee Benefit Plan (5500) Product Updates 21

Upcoming Releases 22

Individual (1040) Product Updates 22

Corporation (1120) Product Updates 22

S Corporation (1120S) Product Updates 22

Contact and Support InformationReturn to Table of Contents.

You can find product and account information by visiting Customer Support online athttp://Support.CCH.com/Suite. In addition to product and account information, the Customer Support siteoffers answers to our most frequently asked questions, forms release status, training videos, and Windowscompatibility with each ProSystem fx product area.

The following Web site provides important information about the features and updates included in allProSystem fx Tax (SaaS) releases:

http://Support.CCH.com/Suite/ReleaseNotes/Tax

Visit the http://Support.CCH.com/Notes/appStatus.aspx?type=SaaS&prodid=934 Web page to view thecurrent status of our SaaS applications. The Application Status Web page is updated every 15 minutes. Youmay visit at any time, even when Support is closed.

Go to Support.CCH.com/Contact to find a list of options for contacting Customer Support. This site alsoincludes a link to the ProSystem fx Suite Support Calendar.

Contact and Support Information • 2

Technology UpdatesReturn to Table of Contents.

2012 Electronic FilingThe IRS began processing returns on the delay list on a limited basis beginning Sunday, March 3, 2013 for allreturn types. Qualified returns can be submitted for filing with this release.

In addition to items previously announced, the following state products are approved and available forelectronic filing submission:

IndividualTennessee Form FAE 170 - Franchise, Excise Tax Return

Corporation, S CorporationIllinois, Michigan MBT

PartnershipMichigan MBT

2012 Tax Updates

Individual, Fiduciary Estimated Tax FormsFinal Forms 1040-ES, 1041-ES and 1040NR-ES are available with this release. Please note that while the 1041vouchers are final and available, the 1041-ES estimate worksheet is not available from the IRS yet. We willupdate this as soon as possible.

Export to BNA Income Tax PlannerYou can now export your return data to the BNA Income Tax Planner.

2011 Electronic FilingThe following state product is approved and available for electronic filing submission:

Corporation / S CorporationMichigan Fiscal return

2011 Tax Updates

Corporation / S CorporationNew Jersey Banking Form BFC-1 for tax years ending through June 30, 2013, and all associated schedules,are now available.

Various issues in the following products are resolved with this release:

IndividualPennsylvania RCT 101 Pro Forma

Technology Updates • 3

Corporation / S CorporationMichigan CIT, Texas

PartnershipMichigan CIT

Tax ExemptCalifornia

Technology Updates • 4

Product Updates

Individual (1040) Product UpdatesReturn to Table of Contents.

2011-5.6

FederalPennsylvania RCT-101, History of Earnings amounts now pro forma to the oldest period first.

2012-3.1

FederalData entered in Pennsylvania > Generic Cities > Estimates/Underpayments > Lines 15-17 (Interview FormPAC-2, Boxes 72-74) now print on the estimate form.

Preparer's name now flows into Form CLGS-32-1.

The occupational tax flows to Form CLGS-32-1, Line 9.

The phone number entered in the return configuration set prints on Form CLGS-32-1, if not entered in thereturn.

Electronic FilingDisqualifying diagnostic 42258 issues when the Taxpayer's PIN is missing or invalid.

The foreign tax withheld on dividends statement for Form 1116 is produced when the foreign amount of taxwithheld on dividends is greater than zero and the US amount of tax withheld on dividends is zero.

Disqualifying diagnostic 43805 issues when the physical presence test on Form 2555 is used and the physicalpresence ending date is blank.

AlabamaForm NOL 85, Line 3b, fills only when itemized deductions are claimed on the return.

Alabama Electronic FilingDisqualifying diagnostic 41467 no longer issues when the withholding from allowed forms matches Form40NR, Line 21.

CaliforniaSchedule P, Line 13L, calculates correctly when there is a sale of home transaction on CA Schedule D.

California Electronic FilingDisqualifying diagnostic 43914 issues to prevent a schema validation error when an amount is enteredwithout a description on Schedule CA, Line 41.

Disqualifying diagnostic 49159 now includes the correct input reference.

Product Updates • 5

GeorgiaState tax withheld on IRA contributions flows to Form 500, Line 19, Georgia income tax withheld on wage(s)and 1099(s).

Hawaii Electronic FilingDisqualifying diagnostic 43225 does not issue when an amount on Form N-342, Line 47, is equal to ScheduleCR, Line 19.

Indiana Electronic FilingDisqualifying diagnostic 43941 issues when Form IT-40RNR, line titled state where you lived, does not equalthe correct 2 digit reciprocal state code.

Disqualifying diagnostic 46742 issues on a nonresident Indiana tax return when the taxpayer and/or spouse(if applicable) county of residence as of January 1 does not equal "00" or "94" through "99."

Disqualifying diagnostic 46762 issues when an Automatic Taxpayer Refund credit has been included on FormIT-40PNR, Line 14, but residency requirements have not been met to receive the credit.

Disqualifying diagnostic 46776 issues when at least one Form IRS W-2 includes more than four occurrences ofstate and local tax information.

Disqualifying diagnostic 48168 issues when locality name has been entered as "VARIOUS" or "TOTAL" on theWages, Salaries and Tips > Wages and Salaries > Locality name (Federal Interview Form IRS W-2).

Disqualifying diagnostic 49005 issues when Schedule IN-529 account number does not begin with "61" or "62"when the account is 11 digits in length or begin with "200," "201," or "208" when the account is 10 digits inlength.

IowaTax-exempt dividends taxable to Iowa no longer double the amount on Schedule B.

Iowa Electronic FilingA disqualifying diagnostic issues to prevent electronic filing of Schedule A with negative amounts.

A disqualifying diagnostic issues when Iowa Form 1040, Line 40, contains other deductions and no ScheduleA is in the return. Itemized deductions are required when other deductions are claimed.

Informational diagnostic has been added for electronic filed returns that require a payment voucher to bemailed.

Iowa Form 148 where the entire nonrefundable credit amount must be carried forward no longer generates aschema validation error.

Iowa Form 4136 for the spouse no longer prints in the return when Iowa Form 1040 is a filing status ofmarried filing jointly.

KentuckyDependents now print on Form 740 and 740-NP, Section B, when Form 1040NR is present.

Kentucky Electronic FilingDiagnostic 43925 issues when there is withholding from a 1099MISC and the payer's FEIN is missing.


LouisianaThe Decedent Filing box and Spouse Decedent Filing box on IT-540-2D, IT-540B-2D, and IT-540B-NRApopulate if the date of death entered on General > Basic Data > 1 - General > Date deceased field (InterviewForm 1, Box 63 or Box 70) is before 01/01/2014.

Louisiana Electronic FilingDisqualifying diagnostic 49041 issues when a return is selected for electronic filing and a credit code hasbeen entered without a corresponding amount on Louisiana > Credits > Other Credits > Other Credits Code(Interview Form LA5, Boxes 76 and 77).

MarylandForm 2848, Power of Attorney and Declaration of Representative, carries taxpayer and spouse designationinformation for the representative to each respective Form 2848.

Maryland Electronic FilingDisqualifying diagnostic 43209 issues for nonresidents when PA is entered as the resident state on General >Basic Data > Home state field (Form 1, Box 30).

Disqualifying diagnostic 43769 issues if the sum of all subtraction code amounts on Form 502SU does notequal Line 1 of Form 502SU.

Massachusetts Electronic FilingDisqualifying diagnostic 40479 issues to prevent MA reject 272.

Disqualifying diagnostic 43851 issues to prevent MA reject 310.

Taxpayers no longer receive MA reject 708 if taxpayer turned 28 in 2012 and is due a health care penalty.

MichiganForm MI-1040CR, Line 10, is limited to zero when MI-1040CR, Line 9, exceeds $135,000 and MI-1040CR, Line8, does not equal "X."

A non-refundable credit override on the Foreign > State Line Adjustments, Options and Overrides > Non-refundable credits (Interview Form TE-10, Box 69) adjusts Michigan Tax Equalization form, Line 11,hypothetical column.

Michigan Electronic FilingForm MI-4884 includes detail information for taxable distributions and/or Roth conversions calculated onForm 8606.

New JerseyFederal return summary correctly displays "Part-Year" for part-year NJ residents.

New York Electronic FilingDisqualifying diagnostic 43927 issues when a dependent is over 13 years old and is being included on FormIT-216.

Form IT-203 returns with zero or negative income on Line 31 and itemized deductions no longer reject.

Returns with incomplete paid preparer information now receive disqualifying diagnostic 43938 or 53939.


OhioThe retirement tax credit on Form OH-1040, Line 48, will not include the amount paid for militaryretirement entered on Income/Deductions > IRAs, Pensions and Annuities > Distributions from Pensions,Annuities and IRAs with a state code of '4' (Interview Form IRS-1099R, Box 150).

Ohio - Ohio CitiesThe tax rate for the city of Findlay, OH is 1.25% for 2012 and 1% for 2013.

Ohio Electronic FilingDisqualifying diagnostic 43827 issues when 'FC' has been entered as the spouse state of residence on OhioGeneral > Residence > Spouse state of residence if different (Interview Form OH1, Box 36).

Disqualifying diagnostic 43780 issues when 'FC' has been designated as the home state on Basic Data >General (Interview Form 1, Box 30) and no country has been entered in Foreign Country (Box 85) or OhioGeneral > Residence > Foreign country of residence (Interview Form OH1, Box 45).

Disqualifying diagnostic 43875 issues when Schedule B, Line 57, has been overridden to be mathematicallyinaccurate.

The OH SD-100 prints in the government copy of an electronically filed return when the option to exclude itfrom the electronic file has been selected on Ohio School District > General > Electronic Filing > Suppress SD100 for electronic filing (Interview Form OH1, Box 43).

PennsylvaniaFiling instructions reference the amount that needs to be paid with the spouse Form PA-V when the taxpayeris deceased.

Form 8879 only prints the ERO signature date when requested.

Pennsylvania - Pennsylvania CitiesThe spouse and taxpayer can offset each others' tax due with a refund in a double column format on FormCLGS-32-1.

VermontForm HS-122, Section B, Property Tax Adjustment Claim, fills when the home state is "VT."

Form IN-114, Line 14c, Adjustment for Prior Years' Bonus Depreciation adjustment, includes bonusdepreciation adjustments from multiple pass-through entities.

WisconsinThe tuition and fee expenses subtraction now accounts for multiple tuition and fee entries for the sameindividual who attended multiple educational institutions.


Partnership (1065) Product UpdatesReturn to Table of Contents.

2012-3.1

FederalA new picklist code for "cancellation of debt" has been added to make book / tax adjustments on theSchedule M-3 worksheet > 4 - Other Information > Other Income Items to Schedule M-3 Adjustment(Interview Form L-8, Box 160).

Data entry of Resident state is allowed on Worksheet Federal > Income/Deductions > PartnershipPassthrough, Fiduciary Passthrough and Large Passthrough after return has been calculated.

Disallowed Section 179 expense, which is included in the Schedule K-1 Capital Accounts Increase/DecreaseAmounts, now uses special allocation code 5913 when entered, and Passthrough disallowed Section 179amounts are now included on Schedule K-1, Line 20Y.

Form 8866, Lines 1, 3, 4, and 5, are not applicable to Partnership returns.

Partner Basis Schedule, Line 13b, now includes Partner > Partner Basis > Partner Basis Information > Gain onDistributions - Override (Interview Form PB-1, Box 108) . AMT Partner Basis Schedule, Line 13b, nowincludes Partner > Partner Basis > AMT Partner Basis Information > Gain on Distributions - Override(Interview Form PB-1, Box 111).

The issuing conditions for Diagnostic 20350 are updated when ending capital is greater than 100 percent.

Electronic FilingForm 8821 will print in the reduced government copy since the return is not included in the electronic file.

Arkansas Electronic FilingDiagnostic 46729 no longer issues if Form 4562 Totals is present in the return.

CaliforniaForm 592-V now prints when Form 592, Quarter 1, is the only quarter printing.

Form 8825, other expenses, are no longer allocated between rental and personal days when entered as adirect expense.

ColoradoSchedule K-1, Employer Identification number, is now masked when requested.

Connecticut Electronic FilingElectronically filed returns can now be printed.

District of ColumbiaAn updated version of Form D-30 is available. Final testing is not yet completed on this form.

IdahoForm ID 65 cross reference is updated.


Idaho Electronic FilingA diagnostic is now issued to avoid an electronic filing rejection when Form PTE-12 is present without anowner filing option selected.

IllinoisForm 1065, Schedule B, Line 2, is now equal to zero for investment partnership returns.

IowaIA 4562A, Columns G and J, now include section 179 amounts.

Kentucky740NP-WH Composite, Line 9, is calculated based upon Line 7 less Line 8.

Maryland Electronic FilingA schema validation issue is no longer encountered when a partially completed Schedule A is present.

MichiganThe partner ID number and partnership ID number will now mask on Schedule K-1 Equivalent when themasking option is chosen in the return configuration set.

Michigan - Battle CreekFiling instructions now reference updated form name and address for new Form BC-1040 EST/BC-1120 EST.

Michigan - Grand RapidsCross references are updated for Grand Rapids.

Interest is now excluded for nonresident partners on Schedule B1, Column 4. Schedule B1 totals no longercarry to Schedule B4.

Michigan CitiesMichigan Cities estimates are no longer produced in a final return.

New YorkSection 168(k) depreciation - override entered using Worksheet New York > Income and Deductions >Additions now flows to the New York Individual Schedule K-1, Line 22.

The format of the New York disregarded entities statement is updated.

New York City Electronic FilingThe partnership extension is no longer rejected for code X0000-005 and no longer gets a schema validationerror if the name begins with "The."

New York Electronic FilingDiagnostic 56755 is no longer issued when a foreign preparer address is present.


PennsylvaniaThe Pennsylvania mail sheet for Form PA40-NRCI no longer prints when all forms are electronically filed andthere is no PA40-NRCI present in the return.

The Pennsylvania partnership program, Schedule D, Pages 2 and 4, now uses the federal corrected Form1099-B cost basis to compute adjustments to gains and losses.

Rhode IslandForm 1065-V now prints in the government copy of electronically filed returns.

South CarolinaForm SC 2210 has been updated to print or not print one or more of its pages depending on form instructionsand presentation of waiver amounts.

Tennessee Electronic FilingTransmittal letters/Filing Instructions no longer instruct you to send a check by mail when electronicallyfiling a return and banking information is not included.


Corporation (1120) Product UpdatesReturn to Table of Contents.

2011-5.6

MichiganForm 4897. A new input option has been added on worksheet Michigan > Corporate Income Tax > General orInterview Form CIT1, Box 33 to exclude members from the second half of the fiscal return.

Input for elimination on worksheet Michigan/Other (Fiscal MBT)/MBT UBG 4580/4752, or Interview FormMBT27 has been added for Form CIT 4897, Page 1, Line 17.

The overpayment credited from the MBT Form 4567 will now show on the CIT Form 4891 as an overpaymentfrom prior period MBT.

2012-3.1

FederalA new option has been added to Print Form 8810 even if Form 8810 shows only income and no losses. The"Suppress 8810 worksheets" field on the Income/Deductions > Passive Activity Limitation Worksheet(Interview Form PL-1, Box 32) has been renamed to "Form 8810 print options." To print the Form 8810regardless a "1" should be entered in this field. The corporation must still be identified as a closely held or apersonal service corporation on the Corporation Type field on the Basic Data Worksheet (Interview Form 1,Box 66)

The option to print Form 6765, regardless of applicability, is now activated.

Electronic FilingThe complete copy of the Federal return will now print when "No" is selected for electronic filing in thereturn.

The complete government copy will now print when extensions are selected for electronic filing in officemanager but a Federal 7004 is not included in the return.

Alabama Electronic FilingElectronic filing diagnostic number 43973 will not issue when the total credit amount on Schedule F does notequal the amount on Form 20C, Pg 1, Line 16f.

Arkansas Electronic FilingElectronic filing has been revised to prevent creating a blank record, which is causing a schema validationerror when importing from a stand alone auditing or trial balance software and importing tax codes that donot have a description or amount present.

California Electronic FilingCalifornia reject code SCHR-043 has been resolved.

ConnecticutEstimate Form CT-1120ES is now calculated based on 100% of prior year tax by default. This may causeSchedule 1, Line 5, not to match the preprinted instructions. A brief description, "Adjusted to" and the newpercentage, will print. A new option has been added on Connecticut Taxes worksheets, Tax Payments,


Penalty, Interest and Estimates section, calculate estimate at 90% tax, or Interview Form CT5, Box 42, torevert back to the 90% calculation.

District of ColumbiaThe District of Columbia D-20, page 3, Schedule D and Schedule E, have been updated to more accuratelyreport the franchise tax deduction for the district.

GeorgiaForm 600, Page 4, Schedule 11, Net Operating Loss worksheet, will now show the loss year, Column A, forall rows.

IllinoisForm IL-2220, Computation of Penalties for Businesses, will now include prior year overpayments in thecomputation of underpayment penalty.

Illinois Electronic FilingIllinois requires the corporation phone number and, if this information is not present in the return,diagnostic number 46801 will issue requesting this information. This will resolve Rejection # ILHeader-10300-1.

MaineMaine Worksheet for 1120ME Schedule B, Line 20, Modification for Alternative Minimum Tax, totalsubtractions on Line 19 now includes the AMT net operating loss deduction carryover amount on Line 14.

Massachusetts Electronic FilingForm MA 8453C will now fill part 3 with the correct state code when the ERO input is entered in the returnconfiguration set under Electronic Return Originator (ERO) overrides.

MichiganForm 4891, Line 20, Taxes Based on or Measured by Income now includes applicable MI taxes.

Form 4895, Line 15, will no longer show pound signs when Line 14 is zero or negative.

MinnesotaForm M4I, Minnesota Income Calculation, Lines 2(o) and 4 (p), and corresponding combined returnworksheets, have been updated. This update reflects government form updates pursuant to f Minnesotaconformity to federal law changes, as of February 20th, 2013. The new law eliminates the need for certainadjustments (additions and subtractions) to the federal taxable income for tax year 2012.

Mississippi Electronic FilingDisqualifying extension diagnostic 53947 will now issue when the electronic signature PIN has not beenentered on the Electronic Filing worksheet, Electronic Signatures section or on Interview Form EF-1, Boxes60-62.

New YorkForm IT-204LL has been modified to show late interest and penalty on the form itself, and to post therespective information for filing instructions and transmittal letter.


New York City Electronic FilingThe ERO Print Name and the ERO Print Date fields on Forms NYC-579-GCT and NYC-579-BCT now reflect theoverride ERO contact name and date if entered on Electronic Filing > Electronic Return Originator -Overrides > ERO contact name and Date signed by ERO. ( Interview Form EF-2, Boxes 41 and 43).

New York Electronic FilingThe New York PDF error when CT-248 is attached is resolved.

South Carolina Electronic FilingReturns previously marked as consolidated will now export without an error message.

Tennessee Electronic FilingElectronic filing diagnostic 30347, which references electronic payment options, no longer appears inreturns that have a refund.

UtahWhen there is a Net Operating Loss Carry forward from prior years, the amount will be included on TC-20,Schedule A, Line 16, regardless of the amount on TC-20, Schedule A, Line 15.

Utah Electronic FilingA new diagnostic # 46735 will issue when a specific NAICS code is selected that requires sales factorapportionment.

Diagnostic # 37550 to attach Form TC-675R will issue when there a Mineral Production Credit is present.

VermontMinimum tax on Line 13 is not calculated correctly when credits reduce below minimum tax but grossreceipts are above the new 2,000,000 calculation.

Virginia Electronic FilingDisqualifying diagnostic #46114 will generate when there is an amount on Form 500, Line 22 (overpayment),or Line 21 = zero (no tax due), and entries have been made for Virginia on Federal > General > Basic Dataworksheet > Direct Deposit / Electronic Funds Withdrawal section (Interview Form BNK-1). Bankinginformation is only required when the return is a balance due return.

VirginiaLetters and filing instructions for estimated tax payments will indicate payments are being made by ACHwhen Virginia - General - ACH payment (Interview Form VA1, Box 40) is checked.

West VirginiaForm CNF-120, Page 5, Schedule C, now prints the end of tax year as payment date for withholdingpayments for returns selected for electronic filing.


S Corporation (1120S) Product UpdatesReturn to Table of Contents.

2011-5.6

FederalFederal Interview Forms A1 through A4 were being pro formaed in consolidated units, which caused thebalance sheet to calculate incorrectly. This has been was corrected.

Optional paragraphs entered for Schedule K-1 transmittal letters did not pro forma if a shareholder was notentered as well. These paragraphs will pro forma to be applied to all shareholders.

2012-3.1

FederalA new option has been added to Print Form 8810 even if Form 8810 shows only income and no losses. The"Suppress 8810 worksheets" field on the Income/Deductions > Passive Activity Limitation Worksheet(Interview Form PL-1, Box 32) has been renamed to "Form 8810 print options." To print the Form 8810regardless a "1" should be entered in this field. The corporation must still be identified as a closely held or apersonal service corporation on the "Type of corporation" field on the Income/Deductions > Passive ActivityLimitation Worksheet (Interview Form PL-1, Box 37)

Form 4562 Landscape Report shows the correct amount of section 179 expense when there is a businessexclusion.

Form 8866, Lines 1,3,4, and 5, are not applicable to S Corporation returns.

Form GA 4562, Lines 1 and 3, now show the correct limits of $139,000 and $560,000.

Open-line statements are no longer sorted and / or combined, when the option to suppress sorting andcombining statements is used.

The Carryover Report now includes the section 179 carryover from Form 4562 Totals.

Electronic FilingDiagnostic 39309 will now refer to Form 1120S instead of 1120.

AlabamaForm ET-1, Line 10, reserved method statement, now reflects the same amount that shows on Line 10 forthe current year provision amount.

Alabama Electronic FilingElectronic filing diagnostic number 41141 will not issue when the total credit amount on Schedule G doesnot equal the amount on Form 20S, Schedule A, Line 22d.

Form 20S, Schedule K-1, Shareholder ID number for Trust, will now export for electronic filing.

Form 20S, Schedule K, Line 10, amount will now export for electronic filing and match the amount on FormSchedule K-1, Line Y.

Schedule K-1, Part II, Line I, will now allow 0.000000 for the shareholder percentage for electronic filing.


ArkansasThe additional information required for farm income has been included in the electronic file preventingschema validation error SCIT2012-0125.

Arkansas Electronic FilingElectronic filing has been revised to prevent creating a blank record, which is causing a schema validationerror when importing from a stand alone auditing or trial balance software and importing tax codes that donot have a description or amount present.

CaliforniaEnterprise Zone sales tax credit will correctly report amounts used this year and carried to next year onForm 3805Z, Part III, Line 11, even if un-matching entity numbers are used.

Form 3805Q has been updated to accommodate NOL's generated during 52/53 week years.

The 9 digit ZIP code printed on filing instructions for Form 3539 (Extension) has been updated.

The deduction for withheld employment taxes eligible for federal credit related to employee tips that arepart of labor cost of goods sold is now added back to state cost of goods sold.

The taxpayer Social Security Number is now clearly presented on composite Schedule 1067A.

When "reduced" Research Credit is elected on Form 3523, the amount passed through to shareholders hasbeen adjusted to reflect year 2012 reduced credit rates.

Connecticut Electronic FilingOn releases 2012.03000 and 2012.03001 the Federal 1120S PDF attachment was not being included in thetransmission file causing S Corporation returns to be stopped for missing PDF's (Status 480). The affectedreturns must be recalculated and resubmitted.

Returns that include shareholders with no capital ownership will no longer be stopped for schema validationerror.

DelawareThe Delaware Form 1100S, Schedule A-1, Line 24, no longer contains an amount from Form 1100S, Line 2,when the return is a loss.

The Delaware Form 200C, Line 2, statement amount now matches the amount that appears on DE Form200C, Line 2.

District of ColumbiaAn update has been made regarding the calculation of the District of Columbia Gross Receipts. This updatewill allow for a more accurate calculation of the adjusted basis of property.

FloridaF-1120, Schedule IV, calculates when Florida apportionable income is not 100%.

GeorgiaAdditions and subtractions for depreciation on Schedule K-1 Equivalent will default to being allocated basedon the effective ownership percentage.

Illinois Electronic FilingDiagnostic 47792 for Schedule NLD will no longer issue when Schedule NLD is not highlighted in the return.


The IL-1120-ST-V mailing address has been corrected for electronically filed returns.

IowaThe Iowa 1120F, Page 2, Schedule A, has been updated so that the depreciation adjustment from the IA4562A will be presented on Line 7 properly.

KentuckySchedule O-PTE, Additions to federal taxable income from Kentucky Schedule(s) K-1 (Part I, Line 4), will nolonger flow to Subtractions from federal taxable income from Kentucky Schedule(s) K-1 (Part II, Line 8) andvice versa.

Expenses related to the federal work opportunity credit will no longer be included in nondeductible expenseson the Schedules K and K-1.

Maryland Electronic FilingDisqualifying extension diagnostic 53502 will now issue only when the preparer address information ismissing or incomplete.

MassachusettsMassachusetts Form U-ST, Line 7, will now answer yes for taxable members if an entry is made for theseparate company level on Interview Form MA1, Box 40, or Massachusetts General worksheet > Basic Datasection Member's tax year ends in a different month than the unitary group field.

MontanaDiagnostic 45206 no longer issues requiring an S Corporation election date in Montana.

NebraskaThe option to force electronic funds transfer is available for NE on release 2012.03010. This option islocated under state/city general information.

New HampshireBT-Summary, Business Tax Summary, Page 3, Signature of Paid Preparer, indicates the preparer name whenentered in the return configuration set or the General > Return Options worksheet, Preparer Informationsection, Print preparer signature line (Interview Form 3, Box 46).

New JerseyNonresident Composite Form NJ-1080-C will now be prepared for the 52/53 week years that are qualified ascalendar year returns.

New YorkForm CT-3, Page 2, Line 17, has been updated to calculate Entire Net Income as the net of Line 9 minusLine 16.

New York Electronic FilingNew York batch extensions receiving reject 05107 has been resolved.

New York extensions will not display missing state information when a CT-245 is selected on NY17, Box 30.


Oklahoma Electronic FilingDiagnostic 43978 will only issue if there is an amount present on Line 16 of the Oklahoma Form 512.

OregonForm 20-S, Schedule SM, Line 8, will now include health insurance premium credit from Federal Form 8941.

Form SC-2012 preparer signature will no longer print if Form 3, Box 46, equals "N" or the Federal Generaltab >Return Options worksheet, Preparer Information section, Print preparer signature field equals "No."

Utah Electronic FilingElectronic filing diagnostic 43897 will issue when specific NAICs codes are selected that require the use ofsales factor weighted apportionment.

TC-20S, Schedule K-1s, will be deleted whenever their corresponding Federal Form K-1s are deleted.

VirginiaSchedule VK-1 Consolidated will mask SSN and / or EIN numbers during print when requested.

West VirginiaForm SPF-100, Page 4, Payment Schedule, now prints the end of tax year as payment date for withholdingpayments for the returns that are selected for electronic filing.

WisconsinForm 5S, Page 4, Schedule 5M, Line 3, will no longer include other rental income when negative.


Fiduciary (1041) Product UpdatesReturn to Table of Contents.

2012-3.1

FederalDiagnostic 53926 will no longer issue when the EFIN is entered in the return configuration set.

State Schedule K-1's will now follow reclassification rules for passive and nonpassive rental income.

There is now an option to suppress printing of Federal Form 2848 on Interview Form S-5, Box 41, orworksheet Other > 2848/8821 > General > Suppress print.

Electronic FilingDiagnostic 49114, asking for one of the boxes in Part II of Form 2210 to be checked, will no longer issue for2210's produced in the return but not required by the IRS. These 2210's are not sent in the government copyto the IRS.

If no extension is produced in the return, the entire government copy of the return will print without havingto turn off the extension for electronic filing.

Perpetual Care Fund/Section 642(i) trusts will no longer receive diagnostic 49149 stating, "If form 1041,page 1, line 18 (income distribution deduction) is present then Field B (number of schedules K-1 attached)must also be present. (IRS Rejection Code 654)."

Returns with multiple Forms 4562, Line 15, will no longer receive rejection code 288.

Transmittal letters will no longer reference Electronic Filing when both the Federal and Extension returnsare selected in Customer Master and then the Federal return is turned off within the return.

Massachusetts Electronic FilingForm 2, Part B, Line 7, will be included in the electronic file when total income is zero.

OklahomaThe calculation of percentage depletion is updated to limit the amount of percentage depletion available to50% of the net income.


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

2011-5.6

CaliforniaThe California diagnostic 49857 has been added to prevent the CA199 from being electronically filed whenCalifornia Form 3885 contains an asset whose cost, prior year, or current year deprecation is negative.

The California diagnostic 49875 has been added to prevent the CA199 from being electronically filed whenForm 199, Line 15, contains a refund.

The California schema now produces the supporting statement for Form 199, Page 2, Line 11, when theamount is zero. The California schema now produces the supporting statement for Form 199, Page 2, Line 9.

The supporting statement for Form 199, Page 2, Line 11, is now included in the electronic return.

MinnesotaThe Minnesota Initial Registration/Annual Report excess/deficit line now includes the expense informationin the calculation.

The Minnesota initial/annual report now shows the amount calculated on the excess or deficit line fromForm 990-EZ, Page 1, Line 18, or Form 990-PF, Page 1, Line 27a.

2012-3.1

FederalForm 4562 now allows bonus depreciation for property placed in service during the current tax year using adepreciation method of "CS."

Form 990 Worksheet, Financial Statements and Reporting section, now contains input for 990 Page 12, PartXII, Line 2a.

Schedule D (Form 990), Part VII, now includes Financial Derivatives on Line 1 and Closely-held EquityInterests on Line 2.

CaliforniaThe California electronic filing diagnostic 47874 no longer issues when the termination date has beenentered on California Annual Information Return (Form 199) worksheet > General section or Interview FormCA1, Box 32.

ConnecticutEstimate Form CT-9990T ES is now calculated based on 100% prior year tax by default. This may causeSchedule 1, Line 5, not to match the preprinted instructions. A brief description, "Adjusted to" and the newpercentage, will print. A new option has been added on Connecticut - Other worksheets, Estimates, Penalty,and Interest section, calculate estimate at 90% tax, or Interview Form CT3, Box 40, to revert back to the90% calculation.


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

2011-5.6

FederalSchedule C, Lines 2f, 2g, and 2h, do not fill if Line e is answered "No."

Electronic FilingDisqualifying diagnostic 40296 issues when either Form 5500, Line 10b(5) Box, is checked and no Schedule Dattached or Schedule D is attached and Form 5500, Line 10b(5) Box, is not checked.

Disqualifying diagnostic 40318 issues when the form year does not match the year of the plan year begindate, unless the plan year begins prior to 2009.

Disqualifying diagnostic 44802 issues when Schedule D, Part II, is missing or incomplete and Schedule Hindicates DFE assets or income, and Form 5500, Line A, indicates a DFE.

2012-3.1

Electronic FilingDisqualifying diagnostic 45097 issues when the form year does not match the year of the plan year begindate, unless the return is for filing year 2008 or earlier, or the year of the plan year begin date equals 2013.


Upcoming ReleasesReturn to Table of Contents.

Look for the following updates in a future release:

Individual (1040) Product Updates

Electronic FilingDisqualifying diagnostic 42260 issues when Box 12 on Form IRS W-2 is negative or missing.

Maryland Electronic FilingDisqualifying diagnostic 46749 issues if state of legal residence is not present or if the home state is 'XX' onGeneral > Basic Data > General > Home state (Form 1, Box 30).

North Dakota Electronic FilingDisqualifying diagnostic 49371 issues correctly when withholding is entered using dollars and cents.

West Virginia Electronic FilingWest Virginia requires the taxpayer's phone number for electronic filing. Disqualifying diagnostic 47029issues if the phone number is not present in the electronic file.

Corporation (1120) Product Updates

Massachusetts Electronic FilingDiagnostic 42961 will now only issue if Mutual Fund Service Company is selected, or Section 38 is selectedand 25 or more employees on Schedule U-ST, Line 8.

MichiganForm 4895, Line 15, will no longer be blank when shareholder compensation has been entered.

New HampshireBT-Summary, Business Tax Summary, Page 3, Signature of Paid Preparer, indicates the preparer name whencoded in the return configuration set or General - Return Options worksheet, Preparer Information section,Print preparer signature line (Interview Form 3, Box 46).

S Corporation (1120S) Product Updates

North DakotaWhen a ND return is present at the top level with a federal consolidated return, Form 60, Page 1, Section F,composite return box, will now be checked if a code 1 is entered on General worksheet > Basic Data >Composite return code (Interview Form ND1, Box 45).

Upcoming Releases • 22

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