ProSystem fx Tax (SaaS)
2012-2.5
Release Notes
Contact and Support Information
2
Technology Updates
3
Electronic Filing
3
2012 Tax Updates
3
2011 Tax Updates
4
February 2013
Product Updates
5
Individual (1040) Product Updates
5
Partnership (1065) Product Updates
8
Corporation (1120) Product Updates
10
S Corporation (1120S) Product Updates
12
Fiduciary (1041) Product Updates
14
Estate & Gift (706/709) Product Updates
15
Exempt Organization (990) Product Updates
16
Contents • 1
Contact and Support Information
Return to Table of Contents.
You can find product and account information by visiting Customer Support online at
http://Support.CCH.com/Suite. In addition to product and account information, the Customer Support site
offers answers to our most frequently asked questions, forms release status, training videos, and Windows
compatibility with each ProSystem fx product area.
The following Web site provides important information about the features and updates included in all
ProSystem fx Tax (SaaS) releases:
http://Support.CCH.com/Suite/ReleaseNotes/Tax
Visit the http://Support.CCH.com/Notes/appStatus.aspx?type=SaaS&prodid=934 Web page to view the
current status of our SaaS applications. The Application Status Web page is updated every 15 minutes. You
may visit at any time, even when Support is closed.
Go to Support.CCH.com/Contact to find a list of options for contacting Customer Support. This site also
includes a link to the ProSystem fx Suite Support Calendar.
Contact and Support Information • 2
Technology Updates
Return to Table of Contents.
Electronic Filing
Qualified returns can be currently uploaded and released for transmission.
Returns containing forms on the IRS delay list continue to be disqualified until the IRS provides
their revisions to the electronic filing specifications. The list can be reviewed at
http://www.irs.gov/uac/Newsroom/List-of-IRS-forms-that-1040-filers-can-begin-filing-in-lateFebruary-or-into-March-2013.
Form 4562 is on the delayed list above, but the IRS began processing returns with these forms
on Sunday, February 10, 2013. With this release, returns with Form 4562 can be uploaded for
transmission.
The IRS previously announced delayed processing of Form 8863, but now indicates they will
begin processing returns with these forms on Thursday, February 14, 2013. Returns with Form
8863 can be uploaded for transmission at that time.
In addition to those previously announced, the following state products are approved and available for
electronic filing submission as noted above:
Individual
Arizona extension, District of Columbia extension, Hawaii, Illinois, Michigan Cities, New York, New York
extension, West Virginia
Corporation
Iowa, South Carolina
S Corporation
South Carolina
Fiduciary
New York
2012 Tax Updates
Individual, Fiduciary
Pursuant to an IRS announcement to all tax software developers relating to Schedule E, page 1, Type of
Property codes 5 or 7, the following changes have been implemented:
If the activity code on Worksheet Federal > Income/Deductions > Rent and Royalty (Interview
Form E-1) is blank and the Type of property code is 5, land, or 7, self-rental, and the property
has an overall gain, the gain is treated as non-passive and is not reported on Form 8582. If the
property has an overall loss, the loss is included on Form 8582.
If it is determined that the land rental should always be treated as an active rental, reported on
Form 8582, Line 1a or 1b, enter the activity code of 7 in Worksheet Federal >
Income/Deductions > Rent and Royalty (Interview Form E-1).
Technology Updates • 3
Corporation, Partnership, and S Corporation
Michigan 2012 final forms are now available; however, Michigan will not begin processing returns
electronically until February 19.
Partnership
The city of Grand Rapids, Michigan, has issued new forms for filing 2012 tax year partnership returns. The
following forms are not final and are not available for filing:
Form GR-1065
Form GR-1065PV
Form GR-1065ES
Form GR-1065ES-EFT
Form GR-1065 Schedule K-1
The current versions of Form GR-1065 and Schedule K-1 in the 2012 Tax program should not be used to file a
partnership return.
2011 Tax Updates
Individual
Form 2106. In 2012, information related to depreciation of a vehicle claimed on Form 2106
moved to the depreciation input from Form 2106 input. This allows utilization of the increased
information available on the depreciation input, such as the business use accumulated
depreciation. However, Income/Deductions > Employee Business Expense > Listed Property
Information > Asset number (Interview Form A-10, Box 75) is needed to include the vehicle
depreciation on Form 2106, page 2, instead of Form 2106, page 1, line 4. Please rerun Roll
Forward or enter the Form 2106 vehicle asset number manually.
Illinois. Roll Forward of the Illinois state income tax refund for returns containing an Illinois
nonrefundable credit no longer includes the Illinois nonrefundable credit amount in excess of
the refund. This only impacts returns calculated prior to Release 2011-2.6, which posted on
February 24, 2012. Please rerun Roll Forward on impacted returns, or correct the refund
amount on Income/Deductions > Other Income > Refunds of State and Local Income Taxes >
State income tax refund (Interview Form M-3, Box 85).
A scan will be available to identify 2011 returns that meet this criteria.
Corporation and S Corporation
Texas. An update has been made to the Texas program to prepare 2013 Texas Franchise Tax Reports for
fiscal year returns. Original franchise tax reports for 2010 or 2011 filed after December 31, 2012, must be
reported on 2013 forms.
You can make entries on Texas > Texas 2013 > General > Check for 2013 report year forms (Texas 2013,
Interview Form TX1, Box 50). The 2013 reports will not be prepared without these entries.
Corporation, Partnership, and S Corporation
Michigan. The final versions of the 2012 Michigan MBT forms required for fiscal year filers whose tax year
started in 2011 are available on this release. Please review them carefully. Michigan will not begin
processing returns electronically until February 19.
Technology Updates • 4
Product Updates
Individual (1040) Product Updates
Return to Table of Contents.
Federal
Form 1040X. Amended Return > Explanation of Changes to Income, Deductions and Credits is available.
Letters and Filing Instructions. The PO Box for federal returns sent through Louisville now reflects "93" in
accordance with the recently published IRS revision. The post office will automatically forward to the
correct location any mail sent to the originally published address until July 31, 2013.
Schedule 8812. This schedule prints when the substantial presence test question has been answered.
Schedule E, Page 1. An activity code of "7" has been added to Income and Deductions > Rent and Royalty >
General > Activity code (Interview Form E-1, Box 34) so that the income from a rental, with a property type
of "5," land, is included on Form 8582, Line 1a.
Schedule E, Page 1. Diagnostic 20937 only issues when an activity code of 5 or 6 is entered in Income and
Deductions > Rental and Royalty > General > Activity code (Interview Form E-1, Box 34).
Schedule E, Page 1. The text on Rent and Royalty > General > 1099 filed now matches Interview Form E-1,
Box 52.
Schedule F. Mileage is calculated at 55.5 cents per mile when standard mileage is used and the date the
vehicle was placed in service is before 01/02/11.
Schedule F. The text on Farm/4835 > General > 1099 filed now matches Interview Form F-1, Box 52.
Schedule H. Schedule H no longer prints if only questions a through c are answered.
Electronic Filing
Diagnostic 42992. Disqualifying diagnostic 42992 issues if the taxpayer is deceased and personal
representative information is missing.
Form 1040. Disqualifying diagnostic 40328 issues when line 22, line 37, line 44, line 54, line 61, and line
72 are all zero.
Form 1040. Line 6b's 'ExemptSpouseNameControl' is included in the electronic file where needed to prevent
Reject R0000-534.
Form 8862. The address for a second or third dependent is not included in the electronic file if the
checkbox indicates that the address is the same as the first dependent.
Form 8917. Disqualifying diagnostic 42112 issues when the student SSN does not match the SSN of either
the taxpayer, spouse or dependent.
Schedule C. Disqualifying diagnostic 48202 issues when mileage is on line 44a and the service date is
missing from line 43.
Schedule EIC. Disqualifying diagnostic 40246 issues when a zero has been entered for the number of months
a dependent lived at home.
Schedule F. Disqualifying diagnostic 48154 clears when an explanation is entered on Farm/4835 > E-file
Information > Commodity Credit Loans explanation (Interview Form F-3, Box 102).
Alabama Electronic Filing
Form 40NR fills the complete employer address.
Product Updates • 5
Arizona
Entries that are present on Interview Form AZ1, Boxes 41 and 42, are completely inactive and obsolete.
Georgia
When an IRS-1099R has Georgia withholding, and the state code is GA, the withholding carries to Form 500,
Line 19, Georgia Income Tax Withheld on Wages and 1099's, instead of Line 20, Other Georgia Income Tax
Withheld.
Iowa
Form IA 1040. Form IA 1040, Line 64, now uses Federal Form 2441, line 11 instead of line 9.
Form IA Schedule B. Form IA Schedule B includes U.S. bond interest in the exempt from Iowa Tax column.
Iowa Electronic Filing
Form IA 130. Form IA 130 allows credit for taxes paid to foreign sources.
Form IA 2210. Input for prior year tax for Form IA 2210 no longer allows negative numbers.
Form IA 123. Iowa requires section A for Form IA 123 NOL Worksheet for electronic filing. A disqualifying
diagnostic issues when the form is in the return with no section A.
Form IA 126. Part year residency dates for Form IA 126 are included in the electronic file for low income
exemption returns.
Kansas Electronic Filing
Disqualifying diagnostic 47753 issues when government form overrides are used on Form K40H and when the
taxpayer does not qualify to file Form K40H because their income is higher than the income threshold of
$32,400.
Maryland Electronic Filing
Disqualifying diagnostic 48482 issues when the 'calculate no tax' option is selected on Maryland > General >
Options (Interview Form MD1, Box 44), and the taxpayer's gross income exceeds the minimum filing level
for Maryland.
Massachusetts Electronic Filing
MA reject 144 does not issue on electronically filed extensions with no balance due.
Michigan
Form MI-1040. Form MI-1040, Line 9d, includes a $1,500 exemption for dependents claimed on another
return regardless of the amount of federal AGI.
Form MI-4884. Form MI-4884 calculates a pension exclusion for a taxpayer that receives retirement and
pension benefits and is born prior to January 1, 1953.
Michigan Electronic Filing
Form MI-1040CR.
Disqualifying diagnostic 43061 issues when Form MI-1040CR, Line 30, has a description entered
and no amount. Disqualifying diagnostic 43062 issues when Form MI-1040CR, Line 20, has a
description entered and no amount. Disqualifying diagnostic 43063 issues when Form MI-
Product Updates • 6
1040CR, Line 25, has a description entered and no amount.
When property taxes paid on service fee housing or special housing is included on MI-1040CR,
Line 10, and there is no taxable value of the homestead entered on Form MI-1040CR, Line 9,
disqualifying diagnostic 41704 does not issue.
Schedule 1. Disqualifying diagnostic 43093 issues when Schedule 1, Line 20, has a description and no
amount.
Missouri Electronic Filing
New disqualifying diagnostics issue to prevent negative amounts in electronically filed fields as defined by
the Missouri Department of Revenue.
New Jersey
Diagnostic 40587 issues to disqualify from electronic filing New Jersey resident returns (Form NJ-1040)
where the county/municipality code 0000 is selected.
Ohio
The transmittal letter for Ohio school district tax returns will not mention a bank account for a direct
deposit refund when no bank information has been included in the electronically filed return.
Ohio - Ohio Cities
The following tax rates have been updated for the following cities: Eaton JEDD (EA07) Credit Rate and
Credit Limit Rate, Elyria JEDD (EL04) Credit Rate and Credit Limit Rate, Greenhills (GR09) Credit Rate and
Credit Limit Rate, Harrison Twp JEDD (HA07) Credit Rate and Credit Limit Rate, Kettlersville (KE04)
Estimate rates, Milford Center (MI10) Estimate Credit Rate, Perry JEDD (PE08) Credit Rate and Credit Limit
Rate, Reynoldsburg Enterprise Zone (RE05) Credit Rate and Credit Limit Rate, Wadsworth (WA01) Credit
Limit Rate, and Young Girard JEDZ (YO02) Credit Rate and Credit Limit Rate.
Ohio Electronic Filing
The Ohio rejection OHCOM-036 will not be received on returns with multiple sources of local wages entered
on the W-2.
Pennsylvania - Pennsylvania Cities
On Form CLGS-32-1, the box for filing status "Single" is now selected when there is a single taxpayer.
Product Updates • 7
Partnership (1065) Product Updates
Return to Table of Contents.
Federal
Duplicate cover sheets are no longer printed in the government copy of the return.
Schedule F, total other expenses amount, will now print on the form next to the statement reference.
Section 737 property distribution is now included on Schedule K, Schedule K-1 Capital Accounts
Distributions/Withdrawals line, Schedule M-2 Property distributions, and the reconciliation worksheets.
The description of the special allocation code now displays on the bottom of the input screen upon
calculation of the return.
The Partner's ID now shows as EIN instead of SSN when entered on Worksheet Federal > Income/Deductions >
IRS Schedule K-1 (1065B) or (1065) - Passthrough > Partner's ID (Interview Form K1P, Box 46).
The Statement for Capital Account now includes entries on Worksheet Federal > Partners > Federal / State
Schedule K-1 Overrides.
Electronic Filing - 4562
Returns that include Form 4562 will no longer be allowed to be uploaded and rejected for electronic filing
as IRS does not allow them at this time.
Alabama
An Alabama business rule is removed that rejected disregarded entities without a single member from
entering information on Form PPT, Page 2, Part b, Line 13. Entry is now available on this line for those
entity types.
Arkansas Electronic Filing
Diagnostic 42949 now issues to prevent a schema validation error when Form AR 1050, Line 6, supporting
statement has an amount but no description.
California
URL's are updated for California.
Connecticut Electronic Filing
Connecticut Tax Registration number which was causing a reject CT011-MEF-PART will now show up
correctly in the electronic filing
Florida
Form F-1065, Part I, Line A3 (Other additions) now only includes Sec. 168(k) bonus depreciation for assets
placed in service through December 31, 2012 in accordance with the revised regulation issued by the Florida
Department of Revenue.
Idaho
Form 65, Line 39 now includes all income from partners filing a composite return.
Product Updates • 8
Michigan
The city of Grand Rapids, Michigan has issued new forms for filing 2012 tax year partnership returns. The
following forms are still in final update and are not available for filing: Form GR-1065 Form GR-1065PV
Form GR-1065ES Form GR-1065ES-EFT Form GR-1065 Schedule K-1 The current versions of Form GR-1065
and Schedule K-1 in the 2012 program should not be used to file a partnership return.
The Schedule K-1 Equivalents will now suppress from printing when the code to suppress the K-1's on
worksheet Partners/General Options/Schedule K-1 options (Interview Form 5, Box 32) is used.
Nebraska
Worksheet Nebraska > Income/Deductions no longer includes amounts entered for Ohio Passthrough
Withholding under Worksheet Federal > Penalties and Payments.
New Jersey Electronic Filing
Diagnostic 56743, "New Jersey Electronic Filing. Extension Disqualified. Total balance due on line 8 of PART
- 200 must be equal line 5 minus line 6 and 7. Please check government forms for overrides." will now read
as, "New Jersey Electronic Filing. Extension Disqualified. Total balance due on PART - 200 must be equal
line 1 minus line 2 on the PART-200-T Worksheet. Please check government forms for overrides.".
Form PART-100 will no longer be included in the export dialog if suppressed or not activated in the return.
Returns with a missing routing transit number(RTN) now receive diagnostic 47181. Any return sent without
an RTN will reject.
New Jersey Magnetic Media Filing
New Jersey magnetic media information will no longer display date exported in ELF Report when magnetic
media is not selected for electronic filing.
New York
When no fiscal year or tax year ending dates are entered in a return, New York Form DTF-350, Group
Affidavit for the MCTMT tax, the year end now defaults to 2012.
Pennsylvania
When Pennsylvania partnership custom filing instructions are requested and the only form processed is the
PA-65 Corp, references to the PA-65 will no longer be included in the filing instructions.
Pennsylvania - Philadelphia
The Philadelphia partnership program has been updated and transmittal letter references to the BPT-EZ form
now appear as BIRT-EZ.
Texas
The custom filing instructions no longer have a spacing issue when both electronic filing and electronic
funds transfer are present.
Product Updates • 9
Corporation (1120) Product Updates
Return to Table of Contents.
Federal
The custom filing instructions are updated for capitalization.
Electronic Filing
Diagnostics indicating that Form 1120-H is not included in the electronic file will no longer issue unless the
return is selected for electronic filing.
Alaska
Combined/Consolidated Credit worksheets have been removed. This is to reflect the changes to the main
Form, AK 611.
California
The California Secretary of State number has been added to forms 100, 100W, 100-ES, 3520, 3533 and 3539.
The firm telephone on form 541 will now print in the correct location.
Florida
Form F-1120, Page 3, Schedule I, Line 15 [s.168(k), IRC special bonus depreciation] will only include Sec.
168(k) bonus depreciation for assets placed in service through December 31, 2012 in accordance with the
revised regulation issued by the Florida Department of Revenue.
Iowa
The Iowa Filing Instructions have been updated to reflect the tax due amount from the IA 1120F when that
return has been selected.
Minnesota
Minnesota Net Operating Loss (NOL) Schedule. A new diagnostic (# 30537) and new help screens have been
added for Interview Form MN1 Box 85 and Worksheet View, Minnesota > General > NOL Options, explaining
how revised NOL default, alternate NOL method and NOL overrides will work now.
Mississippi
Form 83-110, Line 8 - Holding Company Exclusion will now appear as a negative value and reduce the
amount at Line 9 - Total Capital Base.
Missouri - St. Louis
The government copy now provides all the federal forms that need to be attached to St. Louis From E-234.
New Jersey
A data entry field has been added to New Jersey > General > Options and to Form NJ1, Box 42, for
Electronic Filing Override. Entry in either of these fields will override entry in General > Electronic Filing
and the entry in the return configuration set.
Product Updates • 10
New York
New York Form POA (Power of Attorney) will now pick up related entries made in the return configuration
set.
North Carolina
Form CD-405, Page 3, Sch. H, Lines 3f and 3g will now include the amounts on North Carolina Income/Deductions worksheet - Deductions section '2011 total bonus depreciation addback' and '2011
Section 179 depreciation addback' (Interview form NC4, Boxes 100 and 101) respectively.
Utah Combined
Form TC-20, Page 2, Line 4 ownership information will only pick up information from the same level
(Combined, Parent or Subsidiary) as entered on General > Basic Data > 20% or More Directly/50% or More
Owned by Another Entity (Interview Form OS-2, Boxes 30 - 53).
West Virginia
Form WV 2848 can now be suppressed from federal Other worksheet , Form 2848 section or Federal
Interview Form O-12. The Schedule of Payments on Form CNF-120, page 5. does now only print the WV
account number, not the FEIN. The field for the account number is blank when the account number has not
been entered.
Schedule WV CNF-100 NOL is now printing the company name on the top left of the page.
West Virginia Consolidated
The separate companies' Schedule CNF- 100 NOL is now printing in a consolidated return if applicable.
Product Updates • 11
S Corporation (1120S) Product Updates
Return to Table of Contents.
Federal
The option to suppress Officers' Compensation statement is now available.
Line 20 of the S Corporation Basis Limitation worksheet equals Line 9 plus Line 19 when the sum of Lines 1
through 6 is negative.
California
Form 100S, Page 3, Schedule L, Line 19, Beginning of the year mortgages, notes, bonds payable in 1 year or
more, will print on the designated line.
The Alternative Minimum Tax for adjusted gain or loss on Form 100S, Schedules K and K-1, Line 15b, has
been modified to better accommodate assets placed in service before December 31, 1986.
The California Secretary of State number will now be completed by an entry in Common State Worksheet,
State/City common data category, General Information Section, "Other Form" Account/file number box or
on interview Form GEN-1, box 41. Three new Enterprise Zones have been added. A diagnostic referencing
the expired NOL limitation rules will no longer print.
Transmittal letters and filing instructions are now properly produced, when Form 3520, Power of Attorney,
is also produced with form 100S.
Connecticut
Federal Form 1120S now prints behind Form CT-1065/1120SI in the government copy.
Form CT K-1T Transmittal does no longer print in Shareholder's K-1 copy.
Connecticut Electronic Filing
Connecticut S Corporation returns will no longer receive a rejection for STATE-005.
Georgia
Form 600S, S Corporation Income Tax Return, statements will now print only once.
Form 600, Page 4, Column E , Net Operating Loss Balance, will now calculate as the Loss Amount less the
Loss Utilized.
Maine
Form 1120ME, Schedule A, line 15 now be zero when there is zero apportionment in the return and will be
blank when there is no apportionment in the return.
ME Schedule K-1 Equivalent Form now returns a zero amount for withholding when Shareholder Information
> State Information > Checkbox 1 is marked or Interview Form STK-1 Box 41 is checked.
Maine Electronic Filing
Form 941P-ME fiscal and short year returns are now disqualified for electronic filing.
New Jersey
A data entry field has been added to New Jersey > General > Options and to Form NJ1, Box 42, for
Electronic Filing Override. Entry in either of these fields will override the entry in General > Electronic
Filing and the entry in the return configuration set.
Product Updates • 12
A data entry field has been added to New Jersey>General>Options and to Interview Form NJ1, Box 42 for
Electronic Filing Override. Entry in either of these fields will override the entry in General > Electronic
Filing and the entry in the return configuration set.
The installment payment is not added to the tax due of Form CBT-100S filers of an inactive return.
New York
Form NYC-3L, Page 4, Schedule H, Line 5, has been updated to calculate the business allocation percentage
when there are less than three apportionment factors.
Form NYC 3L, Page 4, Schedule G, has been updated to print the complete address.
NY Electronic Filing
New York S-Corporation electronically filed estimated payments stopping in 490 schema validation error
will be resolved on Release 2012.02050.
Oregon
The amount of credit of Health Insurance Premiums on Federal Form 8941 will no longer show as a other
subtraction on Schedule ASC-CORP or as an other subtraction on Form 20-S, Page 1, Line 3 and Schedule SM,
Line 8.
South Carolina
SC1120S K-1, Lines 1-12, Column D, will now be calculated using columns A through C unless special
allocation codes are entered on the Special Allocations worksheet, Special Allocation Detail section or on
Interview Form K-4.
SC1120S K-1, Lines 1-12, Column D, will now use special allocation codes entered on the Special Allocations
worksheet, Special Allocation Detail section or on Interview Form K-4.
West Virginia
Form WV 2848 can now be suppressed from the Federal Other worksheet , Form 2848 section or Federal
Interview Form O-12. The Schedule of Payments does now only print the WV account number, not the FEIN.
The field for the account number is blank when the account number has not been entered.
Product Updates • 13
Fiduciary (1041) Product Updates
Return to Table of Contents.
Federal
Corrected the due date on letters and filing instructions for form TR-579-PT. The program has been updated
to compute the due date of every state's e-file authorization form separately.
Form 5227, Lines 9 and 10, will no longer include capital loss carryovers.
Electronic Filing
Blank Form 1041-V's with no balance due will no longer print upon export.
The diagnostic will no longer issue when the option to receive a notification when Form 8879 not received is
removed from input.
New York Electronic Filing
New York 204LL diagnostic 53933 will issue if direct deposit is selected on Interview form BNK-1, Box 33.
When the New York 204LL has a zero balance due, the status system will no longer display a 'Y' for direct
debit being made.
Product Updates • 14
Estate & Gift (706/709) Product Updates
Return to Table of Contents.
Massachusetts
The latest revision of the following Massachusetts form is available for dates of death on or after January 1,
2003: Form M-706 (9/11 version date).
New York
The latest revision of Form ET-133 is available (2/13 version date).
Product Updates • 15
Exempt Organization (990) Product Updates
Return to Table of Contents.
New York
Missing state information no longer occurs when filing returns and estimates simultaneously.
Product Updates • 16