CRITICAL ALERTS!

California Partnership and LLC Schedule K-1, Lines 10a and 10b Do Not Flow from the Federal Section 1231
On the California Partnership and LLC tax returns, the amount that appears on Schedule K-1, lines 10a and 10b, federal column, reports the amount that appears in the CA column and not what is actually reported on the federal K-1, line 10, net section 1231 gain (loss).

As a workaround, if the net amount that is shown on the federal Schedule K-1 does not equal the sum of the amounts reported on the California Schedule K-1, line 10a and 10b, you will need to override the amounts on the California Schedule K-1 to properly reflect the amount reported on the federal Schedule K-1. Learn more

Indiana Schedule 1 Taxable Railroad Retirement Benefits May Be Incorrect
When there is a distribution from a Form RRB-1099-R (railroad retirement) and the distribution type is 3 (disability), the program incorrectly treats this distribution as taxable for Indiana if the taxpayer is retired on total and permanent disability. As a workaround, on Form IT-2440, override line 1 and enter 0 (zero). Learn more

Massachusetts Nonresidents U.S. Obligations from Dividends Being Subtracted Twice
The U.S. obligations included in dividends are being subtracted twice on Massachusetts nonresident returns. As a workaround, enter the amount of U.S. obligations on the "Other Interest & Dividends Excluded Statement" as directly connected with business activity in Massachusetts. Learn more

• Extended Phone Hours (April 7 - 15, 2008)
  ProSeries Customer Service and Technical Support will offer extended telephone hours for the April filing deadline. (Hours are Pacific Time)
  • Monday - Friday, April 7 - 11, 5:00 a.m. - 11:00 p.m.
  • Saturday, April 12, 7:00 a.m. - 4:00 p.m.
  • Sunday, April 13, 9:00 a.m. - 2:00 p.m. (CS Closed)
  • Monday, April 14, 5:00 a.m. - 11:00 p.m.
  • Tuesday, April 15, 5:00 a.m. - midnight
  
  
• Tax Year 2007 Archive CD
  You can expect to receive the Tax Year 2007 Archive CD for ProSeries and ProSeries Basic Edition by April 9, 2008.
  
  If you regularly download and install updates through the program, you do NOT need to install the updates on the archive CD. The updates on the archive CD are the same updates already available through the program.
  
  A few products will require updating after the April archive CD is released. When these updates become available, you will be able to download and install them through the program. If you wish to receive an updated archive CD, you will be able to order it on My ProSeries anytime after July 2008.

View a complete list of General topics.

ProSeries/1041

• Schedule K-1s Received from Publicly Traded Partnerships Are Not Supported on the New K-1 Entry Worksheet-Partnerships
  In ProSeries/1041, on the K-1 Entry Worksheet–Partnerships, line D if you check the "Check if this is a publicly traded partnership (PTP)" box, do not use the K-1 Entry Worksheet-Partnerships. You must enter all items for publicly traded partnerships on the normal schedules and forms following the special requirements for treatment of publicly traded partnership income and credits included in the 2007 Partner’s Instructions for Schedule K-1 (Form 1065). Learn more

ProSeries and ProSeries Basic Edition

• Tips for Tax Filers on Economic Stimulus Payments
  On March 27, 2008, the IRS issued News Release IR-2008-51, urging taxpayers eligible for the economic stimulus payment to file their tax return now in order to get their payment in a timely manner.
  
  This IRS reminder applies to taxpayers yet to file their 2007 income tax returns as well as retirees, disabled veterans, low-wage workers and others who normally are not required to file a return but who must do so this year to receive an economic stimulus payment. For more information, please visit the IRS Web site.

View a complete list of Federal Tax topics.

• TIP: How to Check the E-File Status of a Return
  You can check the status of an e-file return from within the ProSeries program. If you are unable to check the status of an e-file return from within the ProSeries program, as an alternative, you can check the current tax year e-file status online. Learn more

Santa Barbara Bank & Trust Users

• Santa Barbara Bank & Trust (SBBT) Bank Product Cut-Off Dates
  On March 28, 2008, SBBT issued an update notice announcing their bank product cut-off dates. RAL requests must be IRS accepted and received at SBBT by Tuesday, April 22, 2008. Any RAL requests received on Wednesday, April 23, 2008, and thereafter will be automatically converted to a Refund Transfer. 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 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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