CRITICAL ALERTS!

Important information in ReadMe Files
Reminder, after you install a product update it is IMPORTANT that you open the ReadMe file to view a list of items addressed in that release. The ReadMe file also includes a list of any forms that are not yet final and what's new in that release. Learn more

California Taxes Incorrectly Transfer from the Federal Form 8825 Farm Rental Income and Expenses Worksheet
California taxes entered on line A of the Taxes Smart Worksheet, on the Federal Form 8825 Farm Rental Income and Expenses Worksheet, incorrectly transfer to the California Form 8825 Farm Rental Income and Expenses Worksheet. This situation was corrected in the California Limited Liability Company and Partnership updates that became available online on February 15, 2008. Learn more

Hawaii Sales Tax Deduction Calculates Incorrectly
The Hawaii sales tax deduction calculates incorrectly in certain scenarios. This situation will be corrected in the Hawaii Individual update anticipated to be available online on or about February 22, 2008. Learn more

Iowa Low Income Exception Incorrect for Taxpayers Over Age 65
When the taxpayer is over age 65 on December 31, 2007, the low income exception is incorrectly calculated on the Form IA 1040, Tax Exemption Smart Worksheet. This situation will be corrected in the Iowa Individual update anticipated to be available online on or about February 22, 2008. Learn more

Unable to E-File New York Corporation Return with Federal S Corporation Return
New York State Corporation is not listed on the state drop down list in Part V, Electronic Filing Information, of the 2007 Federal S Corporation Information Worksheet. This situation will be corrected in the Federal S Corporation update anticipated to be available online on or about March 6, 2008. Learn more

South Carolina Form SC1040, Line 41a May Report Incorrect Loss
South Carolina Form SC1040, Individual Income Tax Return, line 41a may report an incorrect loss when there are only losses on the federal Schedule D, Capital Gains and Losses. This situation will be corrected in the South Carolina Individual update anticipated to be available online on or about March 4, 2008. Learn more

West Virginia Schedule E, Line 80 May Be Incorrect
West Virginia Schedule E, Credit for Income Tax Paid to Another State, line 80 may be incorrect. The amount on line 80 is the total income from other states. It should be the total income minus the amount on Form IT-140, West Virginia Income Tax Return, line 7, West Virginia Taxable Income. This situation will be corrected in the West Virginia Individual update anticipated to be available online on or about February 22, 2008. Learn more

• TIP: Client Presentation and Client Advisor Now Available
  Have you tried the new client-focused features in ProSeries Plus? These features are designed to help you add value to your services:
  
  • Client Presentation: provide your clients visually appealing charts and graphs summarizing their return. This three page report can automatically provide your clients analysis along with their printed return.
  • Client Advisor: advises clients how to help minimize future tax liability. This list of personalized recommendations—with 71 possible scenarios—is based on data in your client’s 1040 return.
  • Client Checklist: helps you collect the appropriate tax documents and information from each of your clients easier and sooner. Using prior year data, this highly customizable tool will create a personalized checklist and allow you to modify based on life, work or financial changes. Then, you can print and mail, or e-mail the checklist.
  
  To access these features, open a client's federal individual return, go to the Tools menu and select Client Checklist or Client Presentation. The Client Advisor is a separate tab in the Client Presentation Excel spreadsheet.
  
  For more details about using these new features, type client presentation, client advisor or client checklist 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.

• Economic Stimulus Act of 2008
  The U.S. House of Representatives voted in strong bipartisan support for the Senate Amendment to H.R. 5140, the Economic Stimulus Act of 2008. The President has since signed the bill into law.
  
  Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer. The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. The IRS will use information on the tax return to determine eligibility and calculate the amount of the stimulus payments.
  
  A ProSeries/1040 update and ProSeries Basic/1040 update anticipated to be available online by the end of February will include a worksheet that will calculate the estimated amount of proposed rebate your client could expect to receive. The ProSeries/1040 Complete update will also include a Client Advisor recommendation that informs the client of the estimated amount of rebate. Learn more

View a complete list of Federal Tax topics.

• IRS QuickAlert: Individual Filers - TY 2007 Pub 1346 File Spec Change #10
  On February 19, 2008, the IRS sent out a QuickAlert announcing that TY 2007 Publication 1346, File Specification, Change Number 10 is available on the Electronic Filing Bulletin Board System. It is scheduled to be implemented nationwide on February 21, 2008. This update contains changes for error reject codes 0030, 0302, and 0720. Error reject codes 0294 and 0383 are scheduled to be fixed and implemented February 20, 2008 by 6:00 PM drain. 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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