CRITICAL ALERTS!

Federal Individual, Estimated 2008 Economic Stimulus Tax Rebate Payment May Calculate Incorrectly If More Than Four Dependents and Using Form 1040A
If more than four dependents are entered and Form 1040A is used, the program may incorrectly calculate the amount of the client's estimated Economic Stimulus tax rebate payment.

To resolve this situation, open the Carryover Worksheet. Right click on line 29b, Child Credit, and select Override from the pop-up menu. Enter the correct amount. Learn more

Colorado Corporation, Tax Year 2006 Balance Due Amount Transfers to Tax Year 2007 as Payment Made
The Colorado Corporation tax return transfers the 2006 balance due to 2007 as an overpayment of 2006 taxes credited to 2007 estimated tax.

This situation will be corrected in the Colorado Corporation update anticipated to be available online on or about March 26, 2008. Until this update is available, in Part III of the Colorado Corporation Information Worksheet, replace the incorrect amount transferred to the “Amount of 2006 overpayment credited to 2007 estimated tax” line with the correct amount or leave it blank, if appropriate. Learn more

Maryland Pass-Through Entity, Pages 1-4 of Federal Form 1120S or Form 1065 Do Not Print with Maryland Form 510
Pages 1 through 4 of federal Form 1120S or Form 1065 do not print with the filing copy of Maryland Form 510. Maryland now requires that pages 1 through 4 of the federal return be attached to Form 510.

This situation will be corrected in the Maryland Pass-Through Entity update anticipated to be available online on or about March 19, 2008. Until this update is available, print an additional copy of pages 1 through 4 of the federal return and attach these pages to the state return. Learn more

New York Corporation, Form CT-3M/4M Does Not Calculate Line 5b if Form CT-4 Is Used
Form CT-3M/4M, General Business Corporation MTA Surcharge Return, line 5b does not calculate when using Form CT-4, General Business Corporation Franchise Tax Return Short Form, and the amount on line 34 of page 3 is over $1,000, and the return is not final or extended.

This situation will be corrected in the New York Corporation update anticipated to be available online on or about March 20, 2008. Until this update is available, use Form CT-3, General Business Corporation Franchise Tax Return, or if the amount on Form CT-4, p3, line 34 is over $1,000 override line 5b on Form CT-3M/4M to be 25% (.25) of line 4 on Form CT-3M/4M. Learn more

ProSeries and ProSeries Basic Edition

• TIP: Use ProSeries to Backup Client Files
  It is important that you make backup copies of your client files. Making backup copies of your client files can reduce the amount of data that you may lose if you experience an unexpected computer problem or power failure. You can use the ProSeries Copy/Backup command to backup your client files. If you use this command to backup your client files, you must use the ProSeries Restore command to restore the backup copies of those files before you can open them in ProSeries. Learn more

View a complete list of General topics.

• IRS Announces Economic Stimulus Payment Schedules, Provides Online Payment Calculator
  On March 17, 2008, the IRS issued News Release IR-2008-44, announcing that it will begin sending more than 130 million economic stimulus payments starting May 2, 2008. The initial round of weekly payments will be completed by early July. The IRS also announced the availability of a new online calculator on IRS.gov to help people determine the amount of their stimulus payments. Stimulus payments will be made by direct deposit to people who choose to receive their 2007 income tax refunds through direct deposit. All others will receive their economic stimulus payments in the form of a paper check. For more information, please visit the IRS Web site.
  
  
• Phishing Scams, Frivolous Arguments Top the 2008 “Dirty Dozen” Tax Scams
  On March 13, 2008, the IRS issued News Release IR-2008-41, issuing its 2008 list of the 12 most egregious tax schemes and scams, highlighted by Internet phishing scams and several frivolous tax arguments. Topping this year’s list of scams is phishing, which encompasses numerous Internet-based ploys to steal financial information from taxpayers. New to the “Dirty Dozen” this year is a scheme, which IRS auditors discovered, that relates to unreasonable and/or excessive fuel tax credit claims. For more information, please visit the IRS Web site.

View a complete list of Federal Tax topics.

• Electronic Filing Form 1040A to Receive a Rebate
  Electronic filing of the “Stimulus Payment” Form 1040A is expected to be available in the Federal 1040 update anticipated to be available online on or about March 24, 2008. Until this update is available, the “Stimulus Payment” Form 1040A must be paper filed. Learn more
  
  
• 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 use an IRS approved workaround of adding $1 of interest income with the payer name of ESP. This return can be marked for Direct Deposit of the stimulus rebate payment via Part VIII on the Federal Information Worksheet.

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

• Do Not Include Decedent Information in the Address Field
  The North Carolina Department of Revenue has requested that we ask ProSeries users to refrain from using the address field for decedent information, such as "in care of" or "for the estate of," etc. If a refund is due, this generates a refund check with the address of "in care of" or "for the estate of" which is not deliverable.

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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