TaxWise Software
Changes for
Tax Year 2011
CCH Presentation
Excerpts From
Dallas, TX July
With updated
Information by
HM Riggert NY3
March 14, 2016
Incidents: Rejected Returns (AARP)
5,431 of 31,484
Total Rejects: 125,150
Reject Code Qty
Explanation
R0000-004
20367
Invalid MeF schema. Sch A filed prior to updating
software
502
6913
Employer EIN does not match IRS Master File
R0000-500
4410
MeF Primary SSN/Name Control Mismatch
R0000-504
4310
MeF Dependent SSN/Name Control Mismatch
500
3703
Secondary SSN/Name Control Mismatch
R0000-503
3608
MeF Spouse SSN/Name Control Mismatch
503
3467
Spouse SSN/Name Control Mismatch
504
3422
Dependent SSN/Name Control Mismatch
F1099R-502
3102
MeF 1099R EIN does not match IRS Master File
FW2-502
2949
MeF W2 EIN does match IRS Master File
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Incidents: Software Functionality
4,603 of 21,433
 These are software functions that generated “How Do I”
questions.
 Carryforward Prior Year Returns
 Desktop
 TaxWise Online (* Adding a Restore All feature) – Former Desktop
users were used to deleting returns, therefore, they deleted TWO
returns in error
 Versions
 Program, States, Federal
 New Return
 New Return is grayed out in Desktop
 New Return Button is missing in TWO
 Printing Setup
 Print Sets in TWO
 Print Packets in Desktop
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What’s Changing in the world of Support
 Expansion of hours in West Coast Support Center
 Allows primary SFS support to staff more appropriately for known peak
hours
 Modifying CRM (Customer Records Management) system to streamline the call
flow process
 Streamline the logging process to allow for more targeted data mining
opportunities and to reduce the amount of required after call work
 More visible indicator each time the rep logs into the CRM if they have an
unsolved callback
 Capture repetitive operating system type information so we don’t have to
spend time gathering the data when the customer calls (i.e., Operating
System, network, internet connectivity, etc.)
 Changes to screening and hiring process
 Support Center vs Call Center
 Incorporate more screening surrounding research capabilities
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What’s Changing in the world of Support
Changes to the training process
Reset focus on knowledge libraries available to the
agents
Walk through New Day 1
Efforts to expand and retain experience
2010: We had 70 returning seasonal reps
2011: We had 17 returning seasonal reps (moved facility
to a different state)
Keeping 38 reps through summer as a long-term
temporary assignment
40 additional reps are eligible for 2012 seasonal
assignment
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TaxWise Online Enhancements – A look ahead
 Speed
 All communication is through a secure server and connection.
 New Features
 Restore Returns
 Introducing the Function Keys
 Enhanced Help Center
 Calculated entries
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TaxWise Online Enhancements – Function Keys
Users will have the ability
to use some Function Keys
in TaxWise Online
Mimics how Desktop works
and makes transition from
Desktop to TWO easier
 F1 – Opens Program Help
 F3 - Toggles between
required/not required
 F8 – Toggles the override
feature
 F9 – Links (already
available)
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TaxWise Online Enhancement – Help Center
The TWO Help Center is being redesigned by removing
links not used and adding the following
Click a link to quickly access the pre-recorded
TaxWise Online lessons
Quick access to a page that will show the following
1040 version
1040 release notes
state version numbers
state release notes
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TaxWise Online Enhancement – Restore Returns
Multiple Deleted
Returns can now be
restored using the
Restore Returns feature
The ADMIN user or
anyone assigned the
Administrator role can
see the list of deleted
returns and choose to
restore one or all
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TaxWise Online Enhancement – Inactive User List
If the ADMIN user or any user with the rights to
create users creates a username that exists in the
inactive user list the following message will
display
This messaging is applicable to any of the web
applications that utilizes UUMS (Unified User
Management System)
 TaxWise Online
 TaxWise University
 Support Site
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TaxWise Online Enhancement – Calculated Entries
 User is displayed a warning when they try to
enter data or select a calculated entry
Mimics the calculated entry behavior in desktop

State Direct deposit or Electronic Funds
Withdrawal entries will link back to the state
interview page if the State interview is used
Reduces confusion on how to enter the direct deposit or
electronic funds withdrawal
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Changes that affect both product lines
 The IRS has passed several changes this year
that affect both TaxWise Online and TaxWise
Desktop
 Schedule D Changes including adding new form 8949
 IRA Worksheet
 ITIN change
 1098C VIN Verification
 Mileage Rates Changed on July 1, 2011
Introduction of Preparer User Form
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Schedule D Changes and New Form 8949
 Assets are no longer entered directly on the Schedule D
 Added Form 8949 - Page 1 is for short term, Page 2 is for long term
 Removal of the Long Term/Short Term Capital Gains Worksheets from Find a Form
 Capital Gains worksheet will load the 8949 and put the assets on the appropriate page
and is the only place to designate assets as Taxpayer, Spouse, or Joint
 New A/B/C indicators will be on the Capital Gains worksheet under the 1099 column
 Column (b) Code for type of adjustment reported in column (g) (e.g. offset home loss)
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Schedule D Changes – Sample 1099-B
New
Req’t
Entries not required for:
Items other than stocks
Purchases before 2011
Most Mutual Funds
Stocks held in a DRIP
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Schedule D Changes and New Form 8949
You can have 3 Form 8949s since only one
Box can be checked on each form.
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Schedule D Changes and New Form 8949
8,859
10,123
(35)
(1,299)
Schedule D no longer shows individual transactions, just totals.
Data shows a home sale with an adjustment to offset the loss and
the $35 sales commission for the stock sale on the 1099-B.
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Deductible and Nondeductible IRA Worksheet
Changes to the IRA
Worksheet include
 Line 10: Changed the
wording to Enter
Traditional Contributions
for 2011
 Added the word
Contribution to
each section header to
make it more noticeable
 Line 20: Bold the words
Enter Roth IRA
contribution for 2011
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1098C – VIN Number Validation
 Vehicle Identification Number’s
entered on the 1098C will be
Validated in 2011
 The tax applications will require
the VIN number on the 1098C
per the new IRS rules.
 If the VIN entered is not
consistent with the algorithm,
the user will be displayed a
message
 More information will be distributed on
this prior to season.
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ITIN Changes
If the taxpayer enters an ITIN for the taxpayer
identification number instead of a social security number,
then the social security number box on W-2 and 1099
forms will not be filled in automatically.
 The taxpayer identification number that appears on the W-2 and
1099 forms will have to be entered by the counselor.
 This change was made because some taxpayers with ITINs had
different numbers on those forms.
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Mileage Rates Changed July 1, 2011
Schedule C or C-EZ business mileage must be split
between the two halves of the year: 51 cents per mile for
the first half and 55.5 cents per mile for the second half.
Medical mileage deductions must also be split between
the two halves of the year: 19 cents per mile for the first
half and 23.5 cents per mile for the second half.
The charitable-related mileage remains constant at 14
cents per mile all year.
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Preparer Use Form – Dedicated to Prep Use Fields
 The Preparer Use Fields are deleted from the Main
Information Sheet
 Preparer Use Form will allow the sites to enter up to 25
questions and utilize 25 Preparer Use Fields
 All Preparer Use fields will be standardized to a 15 character alphanumeric field
 All Preparer Use Field entries will be stored in the database for reporting
purposes (not the question)
Taxpayer Reminder field
 Enter information that you need the preparer to be aware of the following
year (e.g. A statement that this return includes a loss-carryover)
 Will automatically display when a return is started in TY 2012 (January,
2013)
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Preparer Use Form – TaxWise Desktop
 Load the Preparer Use Form in Tax Form Defaults
 Enter up to 25 questions in column A
 Enter up to 76 characters
 Helps preparers gather information needed for reports
 Questions are not stored in the database
 11 through 15 are Disability, Foreign Language, Counselor, Reviewer, SIDN
Enter a locked or unlocked history list for each question
 15 character alpha-numeric entries
 The entry field is automatically marked as required if a question is
entered
 All 25 entries are stored in the database
 Reportable in desktop and via the report server
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Preparer Use Form – TaxWise Online
 Enter the Questions and locked list in Settings
 Enter up to 25 questions in column A
 Enter up to 76 characters
 Helps preparers gather information needed for reports
 Questions are not stored in the reports database
 11 through 15 are Disability, Foreign Language, Counselor, Reviewer, SIDN
Enter a history list for each question, if desired
 15 character alpha-numeric entries
 The entry field is automatically marked as required if a question is
entered
 All 25 entries are stored in the database
 Reportable in TWO reports and via the report server
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Legacy vs Modernized E-file
 Challenges from a Vendor perspective
 Supporting dual platforms
 Legacy sunsets October, 2012
 Start dates of e-file platform differences
 80% of our return base could have gone MeF during the first week
 Reacting to User Experience changes
 Challenges from a Preparer perspective
 Lack of screen shots and practice due to release timing
 Confusion over how to migrate new processes into existing
processes
 Submission ID vs DCN
 New state e-file methodology
 E-file errors vs validation errors
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Modernized e-File: Form Set
 Balance of 1040 Form set now supports MeF with
the following exceptions
 1040 NR and 1040X
 The published start date still has MeF opening
the week after legacy
 Industry has made recommendations for the IRS to start accepting
MeF returns at the same time they start accepting Legacy e-files
E-filing of Prior Year Returns
 With MeF, you’ll be able to e-file the current tax year plus 2 prior
years, starting with tax year 2010 returns. For example, a tax year
2010 return will be e-fileable until the end of 2013
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Modernized e-File: PDF Attachments in Desktop
 Desktop will support PDF attachments, but AARP
is not utilizing this for Tax Year 2011
 IRS is not requiring the attachments for TY 2011
 PDF attachments will be required for TY 2012 (January, 2013) – May have
to consider these returns as out-of-scope if we don’t have scanners.
 Entries that allow a PDF attachment will be
listed on the form with a checkbox
 Click the applicable checkbox
 Windows browser window will display
 Select the appropriate PDF
 TaxWise verifies the file is in the correct format (.PDF)
 De-select the box to remove the PDF attachment
 TaxWise includes the attachment with the e-file
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Modernized e-File: PDF Attachments in TaxWise Online

Select the entry on the form and a browser box displays for the
attachment
Only Printable Document Files (PDF) are allowed
User receives error message when not attaching a *.PDF file
All attachments are scanned for virus protection
Uncheck the box to remove the PDF attachment
One attachment per entry
Works in both Default Mode and Classic Mode
Users must Browse to the *.PDF
Checkmark goes away if the PDF is not loaded and you cannot
type in the browse box
Note: The browser box is different between Default mode and
Classic Mode
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Modernized e-File: State Methodology
 Beginning
filing season 2012 (tax year 2011), CCH Small
Firm Services (TaxWise) has made a business decision to
support both linked and unlinked state e-file submissions
for the Modernized e-File program (MeF).
The state e-file submissions will default to link for states
that are participating in the MeF program. The site will
have the option to change the state e-file submission to
unlinked for situations where the state return needs to be
filed prior to or without the Federal e-File.
New York will not participate in the MeF program this
season, therefore, all returns will be unlinked.
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Modernized e-File: State Methodology
What does linked and unlinked mean to your site?
Linked return is when IRS will not make the state return
available until the Federal return is accepted.
Unlinked return is when the state return will be made available
to the state agency at the time of submission. The state
processes the return without knowledge of the Federal filing
status.
 If the federal return cannot be created using the MeF program
and is e-filed using the legacy program, the state return will
also utilize the legacy process and the state e-file will be
generated as a state-only return. The TaxWise applications will
continue to indicate when the Federal e-file has been accepted
to allow you to more easily send the state after the Federal
return has been accepted.
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Customer Support Site – Your Solutions Center
 Changing the format to be more inviting and
easier to access information.
 The Solutions Center will be the landing page
that will give the sites immediate access to the
following without requiring a login
 Blogs
 Hot Topics
 Knowledge Base
 Calendars and Charts
 Links to key items on www.irs.gov
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Customer Support Site – Your Solutions Center
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Customer Support Site – SFS University
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Customer Support Site – SFS University
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Customer Support Site – SFS University
These are interactive videos requiring creating an account. Courses include
Tests. E.g. The video instructs to select New W2 – You must do so to proceed.
You can print a copy of the course and you can print a completion certificate.
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Customer Support Site – Password Recovery
 Adding an additional option for changing the
ADMIN password:
 3 failed login attempts
 3 attempts to enter the security question
 Enter the email address on file for the ADMIN user
If the email address matches the email address
on file for the ADMIN user, the password will be
reset to a temporary password
 Emailed to the email address on file for the ADMIN user
 Automatically requires the password to be changed
This enhancement also applicable with TWO Admin Password
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