New (tax) year, new help!
Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.
If you are a CS Professional customer affected by a disaster, Thomson Reuters may be able to help. See Disaster Recovery Assistance program for information about what services we can offer.
What is a disaster relief?
The IRS typically grants tax relief to taxpayers in presidentially declared disaster areas (e.g. areas affected by hurricane, fire, flood, tornado, or other disasters natural or otherwise). Tax relief may include postponed filing deadlines, postponed deadlines for administrative requests, abatement of penalties and interest, carryback of casualty losses, and waiver of certain administrative fees. The IRS issues a News Release for each presidentially declared disaster containing specific relief provisions. To see a full list of disaster area situations from the IRS, see Tax Relief in Disaster Situations.
Is my client affected?
Refer to IRS Publication 976 to determine whether a taxpayer is affected and whether you need to indicate that on the return. Affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866.562.5227 to request tax relief.
E-filing
All returns (whether affected by disaster or not) must be paper filed during the annual IRS MeF shutdown period, which begins November 17, 2018 for individuals. See IRS Modernized e-File (MeF) shutdown dates for more.
You may not need to make any special arrangements or requests with the taxing authority. The IRS allows any tax return (for clients affected by a disaster or not) from the current year and two prior years to be e-filed; therefore a 2018 return could be e-filed through the end of 2021. Contact the taxing authority that will be processing the return if you have questions about e-filing for clients who qualify for disaster relief.
Updates to UltraTax CS
UltraTax CS is not typically updated for disaster provisions because you can use data entry in the program to account for such provisions. See below for examples of data entry.
Mark a return as affected
Making a note on a return does not designate the taxpayer as qualifying for disaster relief. See "Is my client affected?" above for information about who qualifies.
You may not need to mark a return as affected by a disaster at all. Refer to IRS Publication 976 to determine if you need to indicate that the return is for a client affected by a disaster. Here are a few options for marking a return.
- Go to the General input folder and open the General Footnote field. You can type any relevant information about the disaster here. This will go with the e-file, but will not be included if you paper file.
- Go to Help > Tax Subject Index. Choose Tax Subjects and search for Special processing. Go to that field and enter the name of the disaster there. For 1040 returns, you can only choose from the preloaded list of options. This will go with the e-file, but will not be included if you paper file.
- For paper filing, use attached text to print a note on the front page of the return. See Attaching text to a form for instructions on using attached text.
- For individual taxpayers who qualify under the Disaster Tax Relief and Airport and Airway Extension Act of 2017, go to the Itemized Deducations input folder > Screen 4684P and mark Attributable to a federally declared disaster.
Penalties
You can stop the calculation of any penalties that the client is not required to pay. Generally, there is a checkbox to suppress penalties in the Payments folder on the Pen tab. For specific instructions on suppressing penalties, see the following topics:
Filing instructions and client letters
If the IRS changed the due date of the return, you can update the filing instructions to reflect the extension of time to file. You can also add a statement explaining the IRS tax relief being provided. You can change the filing instructions for each client or for each entity.
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