Products Affected:
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ProSeries/1040
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ProSeries Basic/1040
Situation
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 occurs after installing ProSeries/1040 release 2007.10 or ProSeries Basic/1040 release 2007.09 and only affects the calculation in the Refund Transfer Summary section of the Bank Product Information Worksheet.
Note: Product release information for the latest update installed on your computer can be found in the top section of the ReadMe file.
Solution
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. (Go to the Update menu and select Update Installed Products.)
Workaround (prior to update)
You can ignore the incorrect calculation in the Refund Transfer Summary section of the Bank Product Information Worksheet. This calculation error does not impact the ability for Santa Barbara Bank & Trust (SBBT) and the tax preparer to collect the preparation fees submitted with the return. SBBT will receive the correct preparation fees with the Refund Transfer request.
Once the return has been accepted, you or your client can go to the SBBT Web site to view and print the detail of the fees to be deducted from the refund.
Additional Information