ProSeries/1120, 1120S and 1065 Updates

The IRS has implemented an electronic filing schema change for corporation and partnership returns and extensions.

ProSeries/1120, 1120S and 1065 updates supporting the new electronic filing schema became available online on June 3, 2008. If you have not already done so, please download and install the latest updates. (Go to the Update menu and choose Update Installed Products.)

• Copy or Backup Your Client Files
  Reminder, it is important that you copy or backup your client files. You can use the ProSeries program to copy or backup your ProSeries client files. Learn more

View a complete list of General topics.

• TIP: Entering Income from Oil and Gas Property
  When entering income from oil and gas property owned through a partnership on the K-1 worksheet, scroll down to line 1, Ordinary business income (loss), and check the "Check if "materially" participated in the business activities" box so the activity will be treated as nonpassive. The information should flow correctly to Schedule E, page 2, of the income tax return.
  
  
• IRS Letter Reducing Underpayment Penalty on Form 2210
  Taxpayers who live in areas that are designated disaster relief areas may receive a letter from the IRS reducing the amount of underpayment penalty that is calculated on their tax return. The IRS computer systems automatically identify taxpayers located in certain disaster areas and apply automatic filing and payment relief. Taxpayers within a disaster area do not need to self-identify by writing on their returns or using the disaster designation in their tax software for the IRS to apply the disaster relief. Learn more

View a complete list of Federal Tax topics.

• 990-T Extension/Return not Filed Electronically with 990, 990-EZ, 990-PF Extension/Return
  An issue has been identified impacting Form 990-T extensions and returns. When an extension or return is transmitted electronically and the return type was selected as Form 990, 990-EZ, or 990-PF WITH Form 990-T, the Form 990-T return or extension is NOT transmitted electronically. Only the Form 990, 990-EZ, or 990-PF return or extension is electronically filed. Only the Form 990, 990-EZ, or 990-PF extensions and returns are supported for electronic filing. All Form 990-T extensions and returns must be paper filed. Learn more

ProSeries and ProSeries Basic Edition

• IRS e-file Up Sharply in 2008
  On May 28, 2008, the IRS issued News Release IR-2008-73, announcing that their e-file program set another record in the just-finished 2008 filing season, while Web page visits to IRS.gov also reached new highs in part due to interest in economic stimulus payments. For more information, please visit the IRS Web site.

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

• Texas Form 05-163 Does Not Allow Multiple Check Boxes
  In the ProSeries Texas Corporate update (v2007.02) that became available online on May 14, 2008, the qualifying boxes, items 1 through 3, on Form 05-163, Franchise Tax No Tax Due Information Report, were erroneously changed to mutually exclusive boxes.
  
  This situation was corrected in the ProSeries Texas Corporate update that became available online on May 23, 2008. If you have not already done so, please download and install the update. (Go to the Update menu and choose Update Installed Products.) 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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