CRITICAL ALERTS!

Improving ProSeries Performance
We have made improvements to our HomeBase Tune-Up, Client File Maintenance, Database Maintenance and Re-Sync Database features. We encourage you to use these features regularly in order to improve performance and stability, especially if you have over 1,000 clients. Learn more

Error Message and/or Status Field is Blank
When attempting to print a check you receive the error message: "Unable to read database information for this item" and/or the Bank Products Status field is blank in HomeBase. This situation will be addressed in an update anticipated to be available online on or about February 7, 2008. Learn more

Error Reject Code 0096 for 2007 Individual Income Tax Returns
The IRS has targeted February 11, 2008, as the potential starting date to begin submitting tax returns containing the delayed AMT-related forms (Form 5695, Residential Energy Credits, Form 8396, Mortgage Interest Credit, Form 8859, District of Columbia First-time Homebuyer Credit, Form 8863, Education Credits, or Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers). If you attempt to e-file a tax return containing one or more of these delayed AMT-related forms before February 11, 2008, you will receive ERC 0096.

Filing of Form 4136 Delayed Until March 3, 2008
As a result of the recent enactment of the Tax Technical Corrections Act of 2007, individual e-filing will not be accepting Form 4136, Credit for Federal Tax Paid on Fuels, for Tax Year 2007, until March 3, 2008. Similarly, paper filers should also wait until March 3, 2008 to mail returns containing Form 4136.

Client Advisor Contains a Typo in the First Paragraph
The last sentence in the first paragraph of the Client Advisor should read ...three years or more... instead of "...three years of more..." This situation will be corrected in the next Federal 1040 update. Important Note: Restoring the Default Client Presentation will overwrite any changes you made to the Client Presentation and Client Advisor. Learn more

Saving Edits in Client Advisor
In the Client Presentation, edits made to the Client Advisor do not save when you save the file in Excel. This situation is being resolved by our development team and will be corrected in a future release. We have a workaround for editing the Client Advisor until that release is available. Learn more

District of Columbia Form D-40B and Form D-40BS May Not Automatically Calculate
When the District of Columbia is a nonresident state for a MFJ return, District of Columbia Form D-40B, SUB Nonresident Request for Refund, and Form D-40BS, Spouse SUB Nonresident Request for Refund, may not automatically calculate for a spouse when the taxpayer and spouse both have District of Columbia withholding from a Form W-2. Learn more

Pennsylvania Corporation Final Form REV-986 CT Displays "NON-FINAL" on the Screen
Pennsylvania Corporation Form REV-986 CT, Schedule to Support Claim of Exemption From Corporate Net Income Tax Under P.L. 86-272, displays the “NON-FINAL” message on-screen. This form is final and the “NON-FINAL” message does not appear when the form is printed. Learn more

• New ProSeries Client Advisor and Client Presentation Features
  The new ProSeries Client Advisor and Client Presentation features are now available in the ProSeries 1040 update that became available online on January 24, 2008. After installing this update, when a client's 1040 federal tax return is open, Client Presentation will appear on the Tools menu. The Client Presentation and Client Advisor features are launched simultaneously in an Excel spreadsheet. There are five tabs within the Excel spreadsheet: (1) Cover sheet, (2) Bottom Line, (3) Deductions, (4) 2-Year Comparison Data, and (5) Client Advisor. Click on applicable tabs in the Excel spreadsheet as needed.
  
  For more details about using these new features, type client presentation or client advisor in the Search Help field on the Help toolbar in your ProSeries program. To help you learn more about our professional plus add-ons, please try our new Self-Paced Training.

View a complete list of General topics.

• TIP: Computation of Line 15 on the State and Local Income Tax Refund Worksheet
  To determine the amount of tax benefit that was produced by the refund (also known as the recovery amount), you must refigure the itemized deductions by reducing the state income tax deduction by the refund. Sometimes reducing the state income tax deduction will bring the amount below the amount of the sales tax deduction. When this is the case, the sales tax amount is used to compute the refigured total itemized deductions. Learn more

ProSeries and ProSeries Basic Edition

• IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting
  On January 30, 2008, the IRS issued News Release IR-2008-11, warning taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure. The IRS expects such scams to continue through the end of tax return filing season and beyond. The IRS cautioned taxpayers to be on the lookout for scams involving proposed advance payment checks. Although the government has not yet enacted an economic stimulus package in which the IRS would provide advance payments, known informally as rebates to many Americans, a scam which uses the proposed rebates as bait has already cropped up. For more information, please visit the IRS Web site.

View a complete list of Federal Tax topics.

• IRS QuickAlert: Taxable IRA & Pension Amounts
  On February 1, 2008, the IRS sent out a QuickAlert stating that effective February 1, 2008, providers may successfully e-file returns that contain Taxable IRA Amount (SEQ 0480) or Taxable Pensions Amount (SEQ 0495) on page 1 of Forms 1040/A. Learn more

View a complete list of Federal Electronic Filing and Bank Products Software topics or visit the EF Atlas.

• State Web Sites
  Links to State Tax Departments (Departments of Revenue) Web sites.

View a complete list of State Tax and State Electronic Filing topics.

If you have any questions or comments about this newsletter, please contact a ProSeries agent through the e-mail support feature located in the My ProSeries section of the ProSeries Web site.

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