Preparing a short-year return for a liquidated corporation

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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to access the electronic filing transmission feature in CS Connect.

Thomson Reuters is committed to proactively evolving our security features to help you protect your firm and your clients' data. For more information about multi-factor authentication, see Multi-factor authentication overview.

When a corporation goes through liquidation, the final tax return is due two months and fifteen days after the close of business. The prior-year tax forms can be used when the corporation has a tax year of less than twelve months that begins and ends in the same calendar year, and the current tax forms are not available at the time the corporation is required to file a return. To prepare a final return for a corporation using the prior-year tax forms, complete the following steps.

Opening a client introduces the possibility of the return recalculating. If you would like to prevent the original client from recalculating, enable the Discourage Access feature before following the steps below.

  1. Open the client.
    • If you configured Discourage Access prior to opening the client and receive an access warning, select the Replicate client with cleared status events option. Do not mark the Treat replicated client as temporary, delete it upon closing checkbox.
    • If the client opens with no warning, choose File > Save As. By default, the Save As dialog contains the open client's ID. In order to make a copy, you must enter a unique ID.
  2. Mark the Edit the client's Restrict Access properties checkbox if you want to modify password information or other information after you create a copy of the client.
  3. Click Save to create copy and the new client will open.
  4. In the folders block, click the General tab, and open Screen 1120.
  5. In the Year End Information tab section, enter the applicable dates in the Tax year beginning and Tax year ending fields.
  6. In the Depreciation Information section, enter the prior-year end date in the Most recent field to reflect the short period and calculate the correct prior- and current-year depreciation expense for the assets entered in the asset module.

    Note: After you change the information in these fields, you need to recalculate depreciation by going to the Asset tab and choosing Tasks > Calculate All Assets.

  7. Enter the client's tax information as necessary.

    Note: You need to manually advance the balance sheet accounts and other year-end balances.

UltraTax CS will allow two 1120 returns with the same EIN to be electronically filed in the same year if the returns have different tax year ends, ending in separate months. If filing two returns for the same client for the same tax year with year-ends in the same month, the return must be paper filed.

Related topic: 1065 / 1120-US ELF: E-filing clients with same EIN

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