CRITICAL ALERTS!

Federal Individual, Preparer Tax Preparation Fee Is Not Subtracted from the Total on the Bank Product Information Worksheet
On the Bank Product Information Worksheet, when Refund Transfer Check (RT, ERC) or Refund Transfer Direct Deposit (RTDD, ERD) is selected as the bank product type, line C "Preparer tax preparation fee" is not subtracted from line D "Expected federal tax refund after deductions" in the Refund Transfer Summary section.

This situation was corrected in a Federal 1040 update that became available online on March 7, 2008. Download and install this update, if you have not already done so. Learn more

Arizona Individual, 2006 Credit Used May Transfer to 2007 as Carryover Available to Be Used
Arizona Individual, 2006 Credit Used on Form 310, Form 321, Form 322, or Form 323 may transfer to 2007 as Carryover Available to be used.

This situation will be corrected in the Arizona Individual update anticipated to be available online on or about March 24, 2008. Until this update is available, go to the appropriate Arizona credit form and manually delete the carryforward from the tax year 2006 amount. Learn more

Iowa Fiduciary Form IA 1041, Line 4 Does Not Convert the Total Rental Income/Loss Under Certain Circumstances
Iowa Fiduciary Form IA 1041, Iowa Fiduciary Return, line 4 does not convert the total rental income/loss from the federal return when the Schedule E Farm Rental Income and Expenses Worksheet is used and there are no other Schedule E properties (non-farm properties).

This situation was corrected in an Iowa Fiduciary update that became available online on March 11, 2008. Download and install this update, if you have not already done so. Learn more

New Mexico Individual ReadMe Does Not Explain Why Form RPD-41272 Was Removed
After installing the New Mexico Individual update that became available online on February 27, 2008, Form RPD-41272, Calculation of Estimated Personal Income Tax Underpayment Penalty, is not available. The New Mexico Individual ReadMe does not explain why Form RPD-41272 has been removed.

The instructions for Form RPD-41272 (Rev. 12/2007) state that "...The law has been in affect since 1997- but will not be enforced for personal income tax until tax year 2008 and subsequent years. Please note, if a taxpayer is required by law to make estimated payments for tax year 2007, such payments must still be made despite the Department’s decision not to impose the penalty..." Thus, Form RPD-41272 has been hidden in the latest New Mexico Individual update. Learn more

ProSeries/1120, 1120S, 1065, 1041, 990, 709, and 706

• TIP: User Guides for ProSeries Business Tax Software
  User guides for ProSeries business tax software can be found in the Help Center. Open a federal business tax return, from the Help menu, select Help Center. In the side bar, under Tax Return Help, click How To Use ProSeries... to open the user guide for that return type.

View a complete list of General topics.

• Employer Stock Transaction Worksheet
  New in tax year 2007, the Employee Stock Options Worksheet has been replaced with the Employer Stock Transaction Worksheet. We have added the ability to handle Multiple Lot purchasing on Employee Stock Purchase Plans in one central location, instead of having multiple worksheets for each purchase and sale. The new version of this worksheet (which was called the Employee Stock Options Worksheet in prior years) has been improved to handle additional Employer Stock such as Restricted Stock and Restricted Stock Units. We have also added an option to make the amount reported as wages show as an adjustment on the Schedule D (this may help curtail letters from the IRS). Learn more
  
  
• Special Economic Stimulus Payment Packages Go to Social Security, Veterans Recipients
  On March 10, 2008, the IRS issued News Release IR-2008-37, announcing that starting next week, the Internal Revenue Service will mail special information packages to 20.5 million recipients of Social Security or Veterans Affairs benefits to help them get their 2008 economic stimulus payment. The 10-page tax package contains everything the recipients will need to file a 2007 tax form immediately. Each package contains an informational notice, tips for completing Form 1040A, a sample Form 1040A and an actual Form 1040A for the filer to complete. The package is specially designed for people who may qualify for an economic stimulus payment but who normally aren’t required to file a tax return. For more information, please visit the IRS Web site.

View a complete list of Federal Tax topics.

• Electronic Filing Form 1040 to Receive a Rebate
  The Federal 1040 update that became available on March 7, 2008, allows users to complete a Form 1040 and utilize an IRS approved workaround of adding $1 of interest income with the payer name ESP. This return can be marked for Direct Deposit of the stimulus rebate payment via Part VIII on the Federal Information Worksheet.
  
  
• Electronic Filing Form 1040A to Receive a Rebate
  In a Federal 1040 update anticipated to be available online on or about March 17, 2008, users wishing to electronically file an economic stimulus return containing no income can opt to electronically file the “Stimulus Payment” Form 1040A. The “Stimulus Payment” Form 1040A will not require the above workaround to file electronically. The “Stimulus Payment” Form 1040A should not be transmitted before March 19, 2008. Learn more
  
  
• IRS QuickAlert: Individual Filers - Reminder to Keep Forms 8879 For Your Files
  On March 11, 2008, the IRS sent out a QuickAlert as a reminder that e-file signature authorization Forms 8879 are to be retained for your records and should NOT be sent to the IRS. Learn more

ProSeries/990

• Electronic Filing is Available in ProSeries/990
  New in tax year 2007, electronic filing is available in 2007 ProSeries/990 for federal tax-exempt returns (Forms 990-EZ, 990, 990-PF, 990-T, and 990-N). The 2007 ProSeries/990 software became available online on March 6, 2008. Learn more

ProSeries/1120 and 1120S

• Calendar Year Corporation and S Corporation Filing Deadline
  Reminder, March 17, 2008, is the filing deadline for 2007 calendar year Corporation and S Corporation income tax returns (Form 1120, Form 1120-A, or Form 1120S). For an automatic 6-month extension of time to file the return, file Form 7004, Application for Automatic 6-Month Extension of Time To File Certain Business Income Tax, Information, and Other Returns, and deposit what you estimate you owe. To view Publication 509, Tax Calendars for 2008, please visit the IRS Web site.

Santa Barbara Bank & Trust Users

• Past Due RAL Collections
  On March 4, 2008, Santa Barbara Bank and Trust (SBBT) issued a notice announcing that as the peak of tax season winds down, SBBT begins the process of collecting RALs not funded by the IRS. Collection of past due loans began in mid February. SBBT assign collectors to the group of past due accounts, and they work on collecting the outstanding balances throughout the rest of the year. For more information view SBBT notices on www.proseries.com.

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

• Intuit Joins WE Connect for Low-Income Californians
  Intuit is proud to partner with California First Lady Maria Shriver and her WE Connect campaign to help low-income Californians take advantage of government programs and services to keep more of what they earn. Recent research has shown that many taxpayers eligible for these underused programs are unaware of their eligibility and their likelihood to apply for these credits and programs increases significantly once they learn of them from a trusted party, such as their tax preparer.
  
  One of Intuit's contributions to the campaign is the launching of a free online tool called the WEb Connector that allows Californians to determine if they were eligible for the Earned Income Tax Credit (EITC) and other California programs.
  
  In addition, within ProSeries professional tax software for the 2007 tax year, when California taxpayers returns show that they qualify for EITC, a diagnostic message comes up to prompt the practitioner to help inform the client of the other California programs available. Learn more

View a complete list of State Tax and State Electronic Filing topics or visit the EF Atlas.

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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