2018 UltraTax CS alerts and notices

Alerts and notices

This topic compiles important information related to your software, such as the status of known issues, recently corrected problems, and answers to common questions.

Related topics

User bulletins

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Reported Date Entity Product Reported Version Status Modified Date Fixed Version Synopsis

06/13/19

All

All

Notice

Notice

06/13/19

Notice

Important! End of support for Windows 7

In January 2020, Microsoft will end support for Windows 7. Because Thomson Reuters cannot support customers using our applications on unsupported operating systems, UltraTax CS will no longer be supported on Windows 7 as of January 14, 2020. We strongly recommend that you upgrade your workstations to a supported operating system soon. For more information, see End of support for Windows 7 in our Help & How-To Center.

07/16/19 1040 Federal N/A Notice 07/16/19 Notice IRS announces new 2019 Form 1040 tax return

The IRS announced on Thursday, July 11, 2019 the draft of the new Form 1040 for 2019 tax return filings (processing year 2020). They have also released drafts of Schedules 1, 2, and 3, consolidated from six schedules. For those born before January 2, 1955, there is the new Form 1040-SR available.

Schedule 1, Additional Income and Adjustments to Income

Schedule 2, Additional Taxes

Schedule 3, Additional Credits and Payments

07/16/19 All E-Filing N/A Notice 07/16/19 Notice Modernized e-File (MeF) Systems July/August Shutdown

The MeF Production system will be upgrading to a new platform and will not be available from July 18, 2019 to July 22, 2019 and again August 3, 2019 to August 5, 2019. See the Modernized eFile (MeF) Operational Status page for more information.

Any e-files sent during this time through CS Connect will be held until MeF is once again operational. Also, no acknowledgements will come through during this period.

07/03/19 All Integration N/A Verified 07/11/19 TBD "Specified cast is not valid" error when importing balances into UltraTax CS from Accounting CS

A "Specified cast is not valid" error may occur when importing balances into UltraTax CS for some clients.

06/21/19 All MN N/A Notice 06/21/19 Notice Minnesota 2019 Omnibus Tax Bill

On Friday, May 31st, the governor of Minnesota signed into law the 2019 omnibus tax bill. The Department of Revenue will begin reviewing and analyzing the bill and its impacts on taxpayers.

You do not need to take any action at this time and should not file any amended returns relating to retroactive provisions contained in the tax bill. Once the Minnesota Department of Revenue determines the impacts of the bill, they will provide us with guidance to update the UltraTax CS software accordingly. Please continue to check for informational alerts and software updates related to Minnesota.

06/20/19 1040, 1120, 1065 IL Various Notice 06/20/19 Notice Illinois Electronic Filing System will be down for maintenance
Due to unexpected required maintenance, the Illinois Department of Revenue will not be processing MeF returns beginning 8:00 AM CT, Thursday, 06/20/2019. We expect this interruption in service to continue through approximately 12:00 PM CT, Tuesday, 06/25/2019. The state will honor IRS received dates on all payments and returns received during this timeframe.
06/20/19 1040 Federal Various Notice 06/20/19 Notice IRS issues final regulation blocking SALT deduction limit workarounds
The Internal Revenue Service (IRS) has finalized federal regulations concerning the availability of charitable contribution deductions when the taxpayer receives or expects to receive a corresponding state or local tax credit. The IRS regulations were promulgated in response to attempts by various states to work around the $10,000 limit imposed by the Tax Cuts and Jobs Act (TCJA) of 2017 on the state and local tax (SALT) deduction. The final regulations are designed to block states and localities from setting up charitable funds to preserve the deductibility of state and local taxes. Under the IRS regulations, taxpayers are required to reduce their federal charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return.
06/14/19 All Conversion N/A Verified 06/14/19 N/A Converting from CCH Axcess
Due to changes in CCH Axcess, the backup instructions contained in the Conversion Information Kit are outdated. In Axcess go to the Utilities menu and choose Backup. Next choose 'Transfer to ProSystem fx'. This will create the type of files needed for conversion. Choose CCH Axcess at the competitor program when submitting your data for conversion.
06/12/19 1041, 1040 Federal Notice Notice 06/12/19 Notice 1040-US Schedule A line 16 from a 1041 Schedule K-1

Per 1040-US ELF Critical diagnostic, "Schedule A, line 16 includes Schedule K-1 excess deductions on termination which is not supported by the IRS for electronic filing purposes, therefore the return must be filed on paper."

This amount would data share from a 1041 client or manually entered in Screen K1T-2 Excess deductions on termination.

This is being handled based on 1041 instructions. The IRS did not update the 1040 Schedule A instructions or e-filing schema for this. The IRS has indicated they will review this for tax year 2019 (processing year 2020). The Treasury and IRS have not not issued further regulations on this and is open for public comment. If a client receives a notice, it will have to be addressed directly with the IRS.

06/10/19 1065, 1041, 2290 Federal N/A Notice 06/10/19 Notice E-file rejection R0000-148 - Assurance Testing System (ATS)

The following rejection was issued in error by the IRS: "Incorrect Data: /Return/ReturnHeader/Filer/EIN: 'EIN' of the Filer in the Return Header must begin with "00" for submissions transmitted to the Assurance Testing System (ATS). (value xxxxxxxxx, rule R0000-148)"

This issue has been resolved by the IRS, we will repush the returns. No further action is needed on your side.

06/07/19 1120, 1065 Various Various Verified 06/07/19 N/A 2nd, 3rd, and 4th estimate e-files may not create for CT, NJ, NY, and NYC.
The current workarounds while we find a permanent solution are to suppress the Federal return E-File and the 1st state estimate E-file.  This should allow the remaining estimates to create.  Another option if that does not work is to rename the ELFSTAT.dat file in UT18Data > $Sysdata. Then create the e-files desired and transmit them via CS Connect. Afterwards, rebuild ELF Status through Help > Repair > Rebuild ELF Status. The last step should performed with all client tax returns closed.
05/22/19 All E-Filing N/A Notice 05/22/19 Notice Modernized e-File (MeF) Systems Shutdown for Memorial Day Weekend

IRS will conduct the annual Memorial Day Systems Shutdown beginning Saturday, May 25, 2019 at 9:00 p.m. and ending by Tuesday, May 28, 2019 at 7:00 a.m. The Modernized e-File Systems (both Production and ATS) will not be operational during this timeframe. See the IRS QuickAlerts for more details.

Any e-files sent through CS Connect will be held until the IRS MeF is operational again, also no acknowledgments will come through during this period.

05/10/19 1040, 1041 US 18.3.7, 18.3.6 Notice 05/14/19 Notice IRS announces change to 2018 Schedule D Tax Worksheet

Due to a recent communication from the IRS to the professional tax software community, it has been reported that previous versions of the Schedule D Tax Worksheet for Forms 1040 and 1041 were not properly taxing certain capital gains at the new lower 2018 tax rates, but instead the worksheet was taxing them at their maximum rate of 25% or 28%. The worksheets are used to figure regular tax in certain instances for filers of Forms 1040, 1040-NR, 1041, and 990-T. The IRS has corrected these worksheets and released newer versions for the professional tax software community which have been included in UltraTax/1040 version 18.3.7 and UltraTax/1041 version 18.3.6 software updates.

Important! The updated worksheet will also be posted to IRS.gov on May 16th, 2019 but is already included in UltraTax/1040 version 18.3.7 and UltraTax/1041 version 18.3.6 software updates. The IRS will review returns filed prior to May 16th, 2019 to determine any needed corrections. These taxpayers do not need to file an amended return, call the IRS, or take any other action at this time.

Per the IRS, only a fraction of returns meeting certain specifications will have a different result in tax on the last line of the Schedule D Tax Worksheet to carry to the tax return as the amount of regular tax.

UltraTax CS Data Mining has been updated with three new searches under the title “D Tax Wrk May, 2019 Change” to assist in finding clients that may be affected by this change.

Refer to the User Bulletins for these updates and for more information on what the IRS has changed and the tax returns affected.

05/03/19 1120, 1065 NC N/A Notice 05/07/19 Notice North Carolina 1120/1065 E-files
NC Department of Revenue Business Return Gateway was under maintenance but is now operational. Electronic files may be transmitted again.
05/06/19 990 Federal 17.3.6 Notice 05/06/19 Notice 2017 UltraTax CS/990 Proforma Issues
Balance Sheet, Contributor, and Officer information was not being Proforma'd from 2016 as of the 17.3.6 update released on 4/17/19. This was a regression. If a user notices this problem, as an alternative to reentering the information, the 17.3.6 update can be deleted to revert to 17.3.5. Then Proforma the client before updating to 17.3.6. This will be fixed on a future update.
05/2/19 MFA MFA All Fixed 05/2/19 Fixed MFA ELF Transmissions

We are aware of reports of issues with Multi-Factor Authentication upon transmitting electronic files in CS Connect and prompting for setup although setup. Our Development team is looking into the matter. An update will be provided as soon as more information is available.

Update: This has been resolved. Please close out of the all of the CS Professional Suite applications and/or log out of Virtual Office/SaaS, and reopen and attempt transmissions again. If you still encounter issues, reboot your computer and device.

04/29/19 Login Errors Login Errors All Fixed 04/29/19 Fixed Website Login Issues/Deactivated Account

We are aware of various login issues when logging into cs.thomsonreuters.com as well as the applications including account deactivated messages being experienced by some customers. Our Development team is looking into the matter. Please see the links below for additional troubleshooting steps and resolutions.

Troubleshooting application or website login errors for CS Professional Suite

Deleting temporary internet files or cached files

04/23/19 All All N/A Fixed 04/24/19 Notice Internal ACK central

Update: This is resolved.

The HHTC article Internal: ACK Central - For ALL entities was erroneously removed from search results. We are aware and are working on making this searchable again. You can use the link in this alert to get to the article or go directly to the Stale ack report on Connect.

04/16/19 1040 Federal 2018 Notice 04/16/19 Notice Resubmission of Rejected Tax Returns for April Deadline

From IRS Publication 1345: If the IRS rejects the electronic portion of a taxpayer's individual income tax return for processing and the reason for the rejection cannot be rectified, the ERO must take reasonable steps to inform the taxpayer of the rejection within 24 hours. When the ERO advises the taxpayer that the return has not been filed, the ERO must provide the taxpayer with the reject code(s) accompanied by an explanation. If the taxpayer chooses not to have the electronic portion of the return corrected and transmitted to the IRS or if it cannot be accepted for processing by the IRS, the taxpayer must file a paper return. In order to be filed timely, the paper return must be filed by the later of the due date of the return or ten calendar days after the date the IRS gives notification that the electronic portion of the return is rejected or that it cannot be accepted for processing. The paper return should include an explanation of why the return is being filed after the due date.

When paper filing a rejected return, enter the reason, such as the IRS rejection, in the Form 8948 - Paper Filing Exceptions section at the bottom of Screen ELF.

04/16/19 1040 Federal 2018 Notice 04/16/19 Notice Retransmission of Rejected Timely Filed Electronic Returns and Form 4868 Extensions

April 20, 2019 is the last date to retransmit rejected timely filed electronic returns and Form 4868 extensions.

For more information see 1040 IRS filing deadlines & electronic filing information.

04/16/19 All All All Notice 04/16/19 Notice Transmission and Acknowledgment Delays
Due to the millions of returns received yesterday, transmissions and acknowledgements will be delayed. Files will be processed and marked with a postmark indicating the time received so the IRS will consider them timely. The acknowledgments from the federal and state agencies will be made available via CS Connect once processed by the jurisdiction.
04/15/19 All Platform All Fixed 04/15/19 All Performance Issues - MFA, Login, Script Errors

Update at 4:15 PM ET

This has been resolved and everything is fully operational.

We are aware of various performance issues with logging into the CS Professional Suite of applications including errors with MFA and sign in, notifications and other script errors. Our team is investigating and working to resolve as soon as possible. An update will be provided as soon as more information is available.
04/15/19 All Platform All Fixed 04/15/19 All CS Connect Error - "An error occurred while locating the CS Connect server. Try again later."
Update at 3:15 PM ET
CS Connect is back up and is fully operational.
Currently there is an issue with CS Connect and you will receive an error message when trying to use CS Connect. This issue is being investigated and will be addressed as soon as possible.
04/15/19 All All 2018 Notice 04/15/19 Notice CS Connect Rejection Code "Firm ID"
If you received a CS Connect rejection with Firm ID listed, please recreate and resubmit the return for electronic filing.
04/12/19 All All N/A Notice 04/12/19 Notice E-filing Status - Previously Filed Return Rejection 
Due to a delay in the taxing agencies picking up e-files, you may see a rejection error for federal and states. "A return for XXXX (client ID) was previously sent and is awaiting agency ACK." You may also see "Rejected By Taxing Agency." Please make sure to check the Client Status for "ELF file transmitted to CS." Once we get actual acknowledgments from the federal and state agencies, these will be cleared. No further action is needed.

This is different than an IRS rejection of error code R0000-902-01, R0000-507-01, and IND-517.

04/09/19 All E-Filing N/A Notice 04/09/19 Notice E-File Recalls on or near Deadline
Thomson Reuters does not advise attempting to recall Electronically Filed Returns or Extensions on or near the day of a deadline. Due to the millions of returns received on those days it is highly unlikely that a recall will be successful. Furthermore, recall requests may take hours to register as successful. This will leave your Return or Extension in limbo.
04/01/19 1040 Federal 2018 Notice 04/01/19 Notice UltraTax CS Extension Checklist Generator

The UltraTax CS Extension Checklist Generator is an interactive tool that helps you create a custom extension checklist. You can print your extension checklist and use it to complete extensions in UltraTax CS.

03/25/19 1040, 1065, 1120 Platform 18.3.2 Verified 04/05/19 N/A CS Connect: State STALE

Some state returns will indicate in CS Connect under the Electronic Filing Tab a STALE status although all CS Connect updates have been applied for the jurisdiction and the application is up-to-date. This was partially fixed with  Platform version 18.3.3 on April 4, 2019.

Note: Please continue to electronically file state returns as normal and ignore the STALE status, if your application is up-to-date.

The states affected and reported include:

  • OH Cities (Stand alone) - All Entities
  • NYC UBT - All Entities
  • MO Cities - All Entities
  • 1040 MI Cities
  • 1040 PA Cities

Note: If you encounter an additional return not listed above, please contact Support.

04/03/19 All All 2018 Notice 04/03/19 Notice IRS Spring Filing Deadlines Toolkit

For helpful information on due dates, grace periods, batch extension processing, electronic payments, and e-filing; refer to the IRS Spring Filing Deadline Toolkit for a multitude of resources available.

04/08/19 1041 LA 18.3.0 Verified 04/08/19 N/A 1041 Louisiana Form 541

1041 Louisiana Form 541, Schedules D & E on page 9 of the form does not print as expected. This is being investigated by Development.

Workaround: Go to page 9 of Form 541 and Edit > Overrides and Force Form to Print or Print Current Page from the toolbar.

04/07/19 1040 Federal 18.3.5 Notice 04/08/19 Notice Rejections with Rule X0000-033

Rejections with Rule X0000-033 Modernized e-File (MeF) accepts submissions only in the Unicode Transformation Format-8 (UTF-8) format. IRS Return did not specify UTF-8 encoding. This appears to be a new rejection code from the IRS. There have been several reports of this rejection with returns filed on 04/07/19. We are investigating this rejection code.

Update: The IRS has resolved the issue on their end. Files rejected by the IRS for X0000-033 will be reprocessed and retransmitted.

04/07/19 1040 Federal 18.3.5 Notice 04/08/19 Notice Rejections with Rule IND-116-01

Rejections with Rule IND-116-01 Each dependent in 'DependentDetail' on the return with 'EligibleForChildTaxCreditInd' checked must be under the age of 17. You may be eligible to claim the "Credit for other dependents" if you meet the requirements for the credit. (value [SSN], rule IND-116-01). There have been several reports of this rejection being sent back on returns where the dependent is under the age of 17.

Update: This is an IRS Master File Rejection. Files rejected by the IRS for this rejection can use the options noted below to resolve.

1) Paper file the return, or

2) Go through the process outlined below:

  • The taxpayer will need to contact the Social Security Administration (1-800-772-1213) to see what date of birth they have on file for the dependent. The date of birth can be updated if needed. The new information is then received by the IRS, it could take up to 10 days. The rejected return can be sent after that.
  • If the SSA has the correct date of birth on file, the taxpayer would need to contact the IRS to see what they have on file (1-800-829-1040) and get the date of birth corrected. The return can be e-filed after that.
04/05/19 All All 18.3.5 Notice 04/05/19 Notice Error: Attempted to access an unnamed file past its end
This error means that data files have been opened by multiple product versions. Please update to the latest version through CS Connect. Once complete, open the client again and access the asset module to clear this message.
04/01/19 1040 NJ 18.3.3 Fixed 04/08/19 18.3.4 Depreciation Incorrect for Business Activity Worksheet

If depreciation amounts are incorrect on any business worksheets, use the worksheet to override the incorrect depreciation amounts. This will be corrected in a future update.

Note: See the additional Alerts and Notices recently posted for New Jersey issues that may apply.

04/01/19 1040 NJ 18.3.3 Fixed 04/08/19 18.3.4 Schema Error: Field does not accept negative values Form NJ-1040>Body>AltBusCalcAdjustment

For this particular error, check Screen Rent populated within the Income & Adjustments folder in New Jersey and see if extra units with just depreciation exist. This will be corrected in a future update. If extra units exist, refer to the alert for New Jersey Schedule E Rental Income Adding Units.

Note: See the additional Alerts and Notices recently posted for New Jersey issues that may apply.

04/01/19 1040 NJ 18.3.3 Fixed 04/08/19 18.3.4 New Jersey Schedule E Rental Income Adding Units

With the most recent update, if you have rental units that are not sequential under the Federal Rent & Royalty folder, you may see additional New Jersey Screen Rent units populated within the Income & Adjustments folder. This will be corrected with a future update.

Workaround: Change the federal Rent Screen units to be sequential. Then go to Asset tab > Task > Calculate all assets. Return back to the federal Rent Screen and then to the New Jersey Rent Screens and the additional units will be removed.

03/29/19 1040 Federal 18.3.5 Fixed 04/09/19 18.3.6 F1040-195-01 Rejection/Changing Numbers

For the Schedule C, numbers change after print preview causing the error indicating Line 31 on the Schedule C has to match Line 12 of the Schedule 1 of 1040. Upon preview, line 30 for home office items are changing based on items changing on the Form 8829. This is currently being investigated by our Development team.

Update: This was fixed with 1040-US version 18.3.6 and can be downloaded via CS Connect.

Workaround if itemizing: Enter code 2 to force itemized deductions in the Standard/itemized deduction (Force) field on Screen 1040 in the General input folder.

Workaround if not itemizing: Enter code 1 to force standard deductions in the Standard/itemized deduction (Force) field on Screen 1040 in the General input folder.

03/28/19 1041 WI 18.3.1 Verified 03/28/19 N/A Schedule 2K-1

Schedule 2K-1, page 2, Line 16 doubles on print preview. This will be corrected in a future update.

Workaround: Override the Schedule 2K-1, page 2, line 16 with the correct amount for each beneficiary.

03/27/19 MFA MFA All Open 04/02/19 N/A MFA Push Notifications/IPhone

There have been multiple reports with push notifications not occurring with the Thomson Reuters Authenticator App for various devices. This is currently being investigated by our Development team. An update will be provided once more information is available.

Please see the workarounds and steps noted below based on device type.

Apple Devices Only: Re-install the app. You will not need to unpair and re-pair your account. Follow the steps below:

  1. Uninstall the app.
  2. Re-install the app from the app store.
  3. Open the app and this triggers a refresh of the push notification.
  4. Minimize the app and login to a CS Professional Suite application.The push notification should return.

Non-Apple Devices: Open the Thomson Reuters Authenticator app on your device and accept the MFA prompt, then close out of all CS Professional Suite applications and log back in to authenticate again.

Note: If you still continue to not get push notifications, then you will need to continue to open the Thomson Reuters Authenticator app and accept the MFA prompt.

Reps items to include in Flash notes:

Login Type: (TRID or NetStaff)

Login Device: (What are they doing MFA on?)

Login Device's version: (especially important for the iPhones)

Device Carrier: (Sprint? Verizon? Something else (name it)?)

Does their password end in a special character?:

Did you reset their password?:

Did you reinstall the app?:

IF YOU WERE ABLE TO GET IT WORKING: ........ What worked?!

For more information, please reference the following article:

 http://cs.thomsonreuters.com/ua/login_security/cs_us_en/kb_internal/iphone-push-notifications-missing.htm

03/25/19 1120 MN 18.3.6 Verified 03/25/19 N/A Qualified Improvement Property
Qualified Improvement Property that is eligible for 179 is currently not flowing to NC4562. This will be corrected on a future update.
03/25/19 1040 MN 18.3.3 Notice 03/25/19 Notice Minnesota Acceptance Validation (rule 0797)

Minnesota may reject with Acceptance Validation Error: To claim a new born infant:birth year of child must be same as the filing tax year filing status must be married filing joint (rule 0797).

This is a limitation of the state e-file schema and will happen if there are more than 3 dependents and at least one of them are a newborn.

Workaround: On the MNCr input screen, "Child and Dependent Care Credit" section, "Qualifying dependent information" statement > "Click" on the "Date of Birth" column, this should order the dependents from youngest to oldest. The key is to order the dependents youngest to oldest for this reject. Once that is done, recreate the electronic file and retransmit the return.

03/25/19 1041 MI 18.3.1 Notice 03/25/19 Notice Michigan Electronic Filing

If attempting to create an electronic file for a Michigan return with more than 4 beneficiaries, you will receive the electronic filing schema error:

Missing data in tag Form1041 > Beneficiary > BeneficiaryIdentification > ResidentIndicator

Note: Michigan does not allow electronic filing of returns with more than 4 beneficiaries. Returns with more than 4 beneficiaries will need to be paper filed.

03/23/19 1040 Federal 18.3.4 Notice 03/23/19 Notice IRS Expands Penalty Relief for Underpayment of 2018 Individual Taxes
The IRS has announced that it is expanding the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year prompted by changes in the Tax Cuts and Jobs Act (TCJA). The expanded relief, announced in Notice 2019-25 is lowering to 80 percent the threshold required to qualify for this relief. Under the relief originally announced January 16th, the threshold was 85 percent. This waiver covers taxpayers whose total withholding and estimated tax payments are equal to or greater than 80 percent of their taxes owed. For waiver purposes only, this new relief lowers the 90 percent threshold to 80 percent. This means that a taxpayer will not owe a penalty if they paid at least 80 percent of their total 2018 tax liability. If the taxpayer paid less than 80 percent then they are not eligible for the waiver and the penalty will be calculated as it normally would be using the 90 percent threshold. Taxpayers who have already filed and paid additions to tax for tax year 2018 but qualify for this expanded relief may claim a refund by filing Form 843, Claim for Refund and Request for Abatement, and include the statement "80% Waiver of estimated tax penalty" on Line 7. This form cannot be filed electronically. Refer to Notice 2019-25 for further details. The updated waiver computation will be integrated into a future update of UltraTax/1040 including the revised waiver worksheet once released by the IRS.
03/22/19 Platform Platform 18.3.2 Fixed 04/04/19 18.3.3 CS Connect - Electronic Filing Tab - No longer Searchable

The searchability within CS Connect on the Electronic Filing tab is no longer available with the most recent update. Prior to the update, you could search the Client ID or Name to easily find a specific return for transmission when there is a long list of qualified returns.

Update: This will be corrected on the next Platform update 18.3.3 tentatively scheduled for April 4, 2019.

Please add firms to the TFS firm frequency, if reported. TFS 1641841
03/25/19 All Entities E-Filing 18.3.0 Verified 03/25/19 N/A Electronic file error: "File SECTION199AINFORMATIONWORKSHEET.PDF is required by the electronic file but is not present in the transmitted package"
This error may also trigger File SHAREHOLDERSECTION199AINFORMATIONWORKSHEET.PDF is required by the electronic file but is not present in the transmitted package. This error is being investigated. For most clients that receive this error, you can resolve this by re-creating and re-transmitting the electronic file. For other clients see UltraTax CS all entities: ELF rejection - PDF/TXT/XLSX is required by the electronic file but is not present in the transmitted package.
03/20/19 All MN Various Notice 03/20/19 Notice Minnesota depreciation amounts for bonus and section 179
We are seeking a more consistent and streamlined approach to the depreciation calculations for MN. This includes pass-through section 179 depreciation, NC4562 and the MN Depreciation Adjustment Worksheets. There are several force fields that can be used on the 1040 screens MNDepr and MNNC as well as overriding the forms as you see fit.
03/11/19 1120S 1065 Federal 18.3.3 / 18.3.2 Notice 03/27/19 Notice Form 8990 release information

Form 8990 is now available for S Corporation returns. 1120-US User Bulletin 18.3.3

Form 8990 is now available for C Corporation returns. 1120-US User Bulletin 18.3.5

Form 8990 enhancements for 1065 are now available. 1065-US User Bulletin 18.3.2

03/08/19 Business Federal 2018 Notice 03/08/19 Notice UltraTax CS Extension Checklist Generator

The UltraTax CS Extension Checklist Generator is an interactive tool that helps you create a custom extension checklist. You can print your extension checklist and use it to complete extensions in UltraTax CS.

03/13/19 1040 Federal 18.3.3 Notice 04/01/19 Notice K1 data entry screens do not yet contain all the 1120S and 1065 codes

The input screens for K-1's do not contain all the new or shifted codes. For example on K-2 the other income or loss field is still listed as line 11F. The 1065 K-1 now reports this as line 11I. This has now been corrected on version 18.3.5.

Additionally, 1065 K1 line 13K for Excess business interest expense does not have a data entry field. This is due to that amount needing to be reported on the 1040 Form 8990 which is currently a Non-Calculating Form. Information from this line may be entered there if applicable.

03/13/19 1065 OH 18.3.3 Notice 03/13/19 Notice Electronic Filing Rejections for Investors Ownership Percentage
Electronic Filed Returns with a rejection that lists 'Investors Ownership Percentage' will need to be paper filed. In the next release, we will be including an ELF Critical diagnostic that prevents the creation of these returns.
03/12/19 All E-Filing 2018 Notice 03/12/19 Notice "Ten-day rule" for state e-filing

Per a new mandate from state tax agencies, 2018 UltraTax CS state products cannot transmit e-files that were created in an outdated version if more than ten business days have passed since the current version was released.

For details on the new e-filing requirement and information about keeping your UltraTax CS software up to date, see "Ten-day rule" for state electronic filing.

For details on identifying 'stale' electronic files affected by the "ten-day rule" for state returns, see "Ten-day rule" reports.

03/13/19 All Platform 18.3.1 Fixed 03/25/19 18.3.2 Replicated Clients Assets

There is currently an issue where the application is creating Fixed Assets data files for replicated clients that do not have assets. When replicating UltraTax CS clients in UltraTax CS, folders are created for clients within the DeprData folder. These folders are not being automatically deleted when indicated from the DeprData folder which can cause issues upon reentry.

Update:This has been corrected with the Platform 18.3.2 update on March 21st, 2019.

Note: The folders previously created prior to the update will not be automatically removed and will need to be manually deleted from the directory.

To remove: Navigate to the following location - X:\WinCsi\DeprData\ where X is the drive letter where UltraTax CS is installed, locate the replicated folders and delete and folders with zero assets existing within the folders created.

03/13/19 1040 Federal 18.3.2 Fixed 03/15/19 18.3.4 2210 85% Waiver Relief Worksheet

The 2210 85% waiver relief worksheet does not calculate if tax was overpaid with the last estimated payment for 2018 so no tax is owed for the current year but a penalty is calculating in Part 1 of the 2210. In this situation, the 85% waiver relief worksheet does not fill out, despite having a penalty calculated.

Update: This has been corrected on the 1040-US 18.3.4 release.

03/13/19 1040 ID 18.3.0 Fixed 04/03/19 18.3.1 1040 Idaho Standard Deduction Worksheet, line 3 earned income

Other income with federal code 9 for "Child's non-SE earned income" on Screen Income is not being included as earned income on the Idaho Standard Deduction Worksheet, line 3. This will be corrected in a future update.

Workaround: On the Idaho Standard Deduction Worksheet, override line 3 to the correct amount.

03/06/19 1040 DC 18.2.1 Fixed 03/13/19 18.3.0 1040-DC e-file rejection DCD40-0071

Update: This has been resolved as of 1040-DC update 18.3.0 released March 12, 2019.

Incorrect Data: If FormD40, Line 1 checkbox 'Single', 'Married filing Joint', 'Married filing separately', 'Married filing separately on same return', 'Registered domestic partner filing jointly', 'Registered domestic partner filing separately on same return', 'Head of Household', 'Qualifying Widow(er) with Dependent Child', or 'DCFilingStatusType' with value of 1, 2, 3, 5, 6, 7, 8 or 9), when Line 15 'DCDeduction' is Standard then Calculation G-1 is required. (rule DCD40-0071)

03/12/19 1065 Federal All Notice 03/12/19 Notice Floor Plan Financing Interest Data Entry Guidelines
The proper data entry for floor plan financing interest will be to include it in the Interest expense line in the appropriate activity. Then remove the floor plan interest amount from the Business interest expense subject to limitation field. Lastly, enter the total floor plan financing interest expenses on the Schedule K folder and the 8990 screen. The amount of floor plan interest will still be reported on 1065 line 15 after flowing through the 8990.
03/11/19 1040 Federal All Notice 04/01/19 Notice QBI worksheet may understate QBI due to Guaranteed Payments of Health Insurance

The Qualified Business Income may be understated due to Guaranteed Payments of Health Insurance listed on box 13M. The QBI reported on 1065 K-1 box 20z is already net of the Guaranteed Payments. The Self Employed Health Insurance is also a deduction from QBI. This appears to create a second deduction for the same amount. The IRS has strongly indicated their position is that SE Health Insurance is a QBI deduction.

With version 18.3.5 a field has been added to exclude the Self Employed Health Insurance from the K-1 reconciliation worksheet for QBI. This field is located on the K1-7 screen. Enter a 2 - 'Include for Partnership' on the Self-employed health insurance deduction from QBI field.

03/07/19 1065 Federal 18.3.1 Notice 03/11/19 Notice Form 8990 and Excepted trade or business under section 163(j) and K-1 box codes

Form 8990 calculates in every return and fills out K-1 box 20. The input fields and diagnostics related to Form 8990 and Section 163(j) appear to be causing confusion.

If the ‘Small business taxpayer’ option is selected on the Schedule K folder and the 8990 tab, then typically the critical diagnostic regarding the Excepted trade or business under section 163(j) can be ignored. The Form 8990 will still calculate, but not print, and information will flow to K-1 box 20 code AH.

If the business does not meet the Small Business definition, then a selection should be made on the Activity screen(s) that indicates whether the business meets the criteria as an Excepted trade or business under section 163(j).

Selecting ‘2-No’ will result in the Form 8990 printing and K-1 box 20 having codes AE, AF, AG and/or AH.

Selecting ‘1-Yes’ will NOT result in the Form 8990 printing but information will flow to K-1 box 20 code AH. (Examples: Utility, Real property, or Farming businesses.)

Furthermore, additional diagnostics may appear after selecting ‘1-Yes’ regarding elections needed for Real property or Farming activities.

The 1065-US 18.3.2 release contains an option to suppress code AH.

03/08/19 1065 Federal 18.3.1 Notice 03/08/19 Notice Interest Expense and Business interest expense subject to limitation
Interest expenses data entered after the 18.3.1 update on February 28th will flow down to the Business interest expense subject to limitation field. Interest expenses data entered prior to the 18.3.1 update on February 28th will NOT flow down to the Business interest expense subject to limitation field. This can also occur when importing from an accounting product. Please review the Interest Expense fields and reenter the Interest expense to ensure proper reporting.
03/11/19 All MN 2018 Notice 03/11/19 Notice Minnesota Like Kind Exchange with Section 179

We are not supporting the calculation of like-kind exchanges with Section 179 this year. Amounts can be forced under the Minnesota input under Screen 8824P Sale and Depreciation Information section under the Adjustments or Income & Adjustments folder if desired and feel it is appropriate.


03/11/19 1120 ID 18.3.0 Fixed 04/03/19 18.3.2 1120-ID US Obligation Interest from 1120-H
When completing an 1120-H at the federal level, the US Obligation interest is not flowing to Form 41. This will be corrected in a future update.
03/08/19 1065 LA 18.3.1 Fixed 03/11/19 Fixed Louisiana Extension and Composite Return Rejections-rule Vendor

Rejected- Acceptance Validation: You have not been approved to submit this MEf Return type yet (rule Vendor).

Louisiana returns and extensions are going to be held pending resolutions of state issues. Our Development team is working closely with the LA DOR to resolve the issue as soon as possible. An update will be provided as soon as more information is available.

Update-The state has corrected the issue on their end and previously rejected returns and extensions including composite filings can be recreated and resubmitted for processing.

03/07/19 All Platform 2018 Fixed 03/07/19 Fixed MFA Electronic Filing Issue

We are aware of an issue with Multi-Factor Authentication not working in CS Connect when attempting to transmit electronic files. The proper authorities have been notified and we are working to resolve as soon as possible. An update will be provided as soon as more information is available.

Update: This issue has been resolved. You will need to close all CS Professional Suite applications and then restart UltraTax CS and login again to be able to electronically file.

03/07/19 1065 LA 18.3.1 Fixed 04/03/19 18.3.2 1065-LA Form R-8453PE missing preparer information
Currently, Form R-8453PE is not listed in Forms view and the Preparer information is not flowing to Part III. This will be corrected on the next update.
03/04/19 1040 Federal 18.3.3 Fixed 03/23/19 Notice Electronic filing error Rule F2441-022

Error Code: F2441-022 - "Missing Data: /Return/ReturnData/IRS2441: If filing status of the return is Married Filing Separately and Form 2441 'CreditForChildAndDepdCareAmt' or 'ExcludedBenefitsAmt' has a non-zero value, then 'EligibilityRequirementMetInd' must be checked.

Returns are erroneously being rejected with this error code. This has been reported to the IRS. Until this error is addressed by the IRS, returns with this rejection will have to be paper filed.

Update: The IRS updated this business rule. Returns that previously received this rejection can be re-created and retransmitted. 

02/21/19 1065 Federal All Notice 05/14/19 Notice Aggregation for QBID / 199A in Business Returns

The final regulations permit pass-through entities to aggregate Section 199A amounts. This is not currently available in the UltraTax CS program and will not be available prior to March 15th. For returns that require this functionality, it is suggested that they be extended. 

Update: To create aggregated Qualified Business Income Deduction amounts in the 1065 module mark all applicable activities as qualifying for QBI, including entering any QBI data from K-1’s coming in. Go to the Qualified Business Income worksheet. Note the amounts on the Totals column. Unmark all activities for QBI and remove QBI information from K-1’s. Create a new unit in Income and Deductions (for example) and enter QBI Aggregation Group in the Description field. Access the QBI tab and force the totals from the worksheet in the Qualified Business Income (Force), W-2 wages (Force), Qualified property field, etc. Access File > Client Properties > Advanced Properties button. To data share this information to the individual return, mark the option ‘Elect to import the data of 1065 Schedule K-1’s by the per activity method, in lieu of single K-1 method’. Print or Preview the return to update the data sharing files. Mark that same option in the 1040 return. When the data shares in it will share a separate K-1 unit with the total aggregated QBI information. We are working to streamline this process in the future with the release of UltraTax CS 2019 program.

02/08/19 1120 Federal All Notice 05/14/19 Notice Aggregation for QBID / 199A in Business Returns

The final regulations permit pass-through entities to aggregate Section 199A amounts. This is not currently available in the UltraTax program.  For returns that require this functionality, it is suggested that they be extended. 

Update: To create aggregated Qualified Business Income Deduction amounts in the 1120S module mark all applicable activities as qualifying for QBI, including entering any QBI data from K-1’s coming in. Go to the Qualified Business Income worksheet. This module does not contain a Totals column so the amounts will have to be totaled manually. Unmark all activities for QBI and remove QBI information from K-1’s. Access the Income and Deductions folder (for example) and the QBI tab. Add a unit and name it QBI Aggregation Group in the Description field and force the totals in the Qualified Business Income (Force), W-2 wages (Force), Qualified property field, etc. Print or Preview the return to update the data sharing files. When the data shares in it will share the total aggregated QBI information. We are working to streamline this process in the future with the release of UltraTax CS 2019 program.

03/04/19 All Federal 2018 Notice 03/04/19 Notice Using TFS queries for QBID calls
Shared queries have been set up for each entity for QBI. Access the shared queries in TFS by clicking on Queries > Shared Queries > Product Specific on the left-hand side of the display. This will help you quickly identify QBI TFS items that are open or have been reported.
03/04/19 1040 States 2018 Notice 03/04/19 Notice States Waiving Tax Penalty for Farmers, Fisherman (Following Federal Relief)
Please review the following TFS for updates on if the state will be following the federal relief from the 3/1 underpayment penalty for farmers/fishermen.
03/01/19 1040 All 2018 Notice 03/01/19 Notice Refund Advantage or EPS Advance Loan Rejections
Form 1040 electronic files with applications for bank products featuring an Advance loan are not accepted by Refund Advantage or EPS after 2/28/19. Returns with these applications will be rejected starting 3/1/19. Update the bank disbursement service type on Screen RAL to be a refund transfer (code DS) or delete screen data on Screen RAL to remove the bank product application. Recreate and transmit the electronic file again after updating data entry as applicable on Screen RAL.
03/01/19 1041 MI 18.3.1 Verified 03/01/19 Open Form 8453-FE, 1041V, and Michigan Filing Instructions

The Form 8453-FE is intended for unlinked state returns and will only print when the Federal electronic return is suppressed.

The Form 1041V should print when electronic filing for any balance due returns however at this time will only print when the Form 8453-FE is generated. This will be corrected on the next update.

The Michigan Filing Instructions may not properly reflect to sign the Form 8453-FE when applicable. The current workaround is to go to Setup > 1041 > Michigan > Filing Instructions > and restore the default.

03/01/19 1041 Federal 18.3.1 Fixed 03/11/19 18.3.2 Screen Broker

Currently, foreign interest and dividends entered on screen Broker do not flow to screen 1116. This was fixed on update 1041-US 18.3.2.

03/01/19 All VA 2018 Notice 03/01/19 Notice Virginia Conformity
On February 15, 2019, Legislation was enacted to advance Virginia’s date to conformity, following TCJA. This legislation allows Virginia to generally conform to the Tax Cuts and Jobs Act. The state of Virginia is still working on updating forms, schemas, instructions related to this legislation. UltraTax CS will be updated for applicable changes in the future once necessary information is updated from the state. For more information see Virginia Department of Taxation.
03/01/19 1040 Federal 18.3.3 Notice 03/01/19 Notice Farmers and Fisherman Extension

The IRS is granting an extension of the March 1st deadline for farmers and fishermen to make their estimated tax payment before being subject to estimated tax penalties – as long as they file and pay the full amount of tax reported on their 2018 return by April 15, 2019 (or by April 17, 2019, for those taxpayers who live in Maine or Massachusetts).

To claim the waiver of the estimated tax penalty, go to Screen Pen in the Payments folder and mark the fields Have waiver amount equal to penalty calculated and 2/3 of gross income is from farming or fishing. As long as the Date 2018 return filed field is on or before 4/15/19 (or 4/17/19 for taxpayers who live in Maine or Massachusetts), Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, will be attached to the return with Part 1, Box A marked and the rest of the form is blank. Refer to Notice 2019-17 for more information.

03/01/19 1040 MN 2018 Notice 03/01/19 Notice Revenue Waives Tax Penalty for Farmers and Fishermen

The Minnesota Department of Revenue on February 28th, 2019 announced that it will waive the estimated tax penalty for farmers and fishermen who file returns and pay tax by April 15.

This followed a similar announcement from the Internal Revenue Service earlier the same day. The penalty was waived because of concerns about accurately determining tax liability based on changes from the Tax Cuts and Jobs Act by the original March 1 deadline.

There is an expected delay for software to update for this change.

Your clients who qualify for this relief should not complete Schedule M15 and should include a copy of their federal Form 2210-F.

Find more details about the announcement at DOR website. You can also read Notice 2019-17 from the IRS.

02/28/19 1040 Federal 18.3.2 Fixed 03/01/19 18.3.3 QBID for Specified Service Business Calculation

The Qualified Business Income Deduction (QBID) for a specified service business is calculating even when the taxable income in the return is over the threshold with the most recent update for Schedule C and Schedule K-1 activities. Our Development team is working to address the issue as soon as possible.

Update: This was addressed on update 1040-US 18.3.3.

The workaround, when above the threshold, is to remove the data on Screen K1-7 under the K1 1065,1120S folder and/or enter zero on the Qualified business income (Force) field on Screen C-3 under the Business Folder.

02/28/19 All Federal 2018 Notice 02/28/19 Notice Asset calculations under 1.168(i)-4(d) - ADS life
In a future release, you will be able to calculate a change of use (1.168(i)-4(d)) for prior year assets on an asset by asset basis. You’ll be able to do this when making an election under 163(j)(7)(B) or (C) that requires the business to use the alternative depreciation system (ADS) for certain type of property.
03/01/19 1041 CO 18.3.0 Notice 03/05/19 Notice Rejection - Rule 18-105-002

The state of Colorado is improperly rejecting 1041 returns with the rejection Form data error: The taxpayer name and Federal Employer Identification Number(FEIN) do not match Internal Revenue Service records. (rule 18-105-002). The state is working on the update for this error however no time frame is available as to when it will be corrected.

Update - The state has corrected the issue on their end. Previously rejected returns will need to be recreated and resubmitted.

02/28/19 1040 States 2018 Notice 02/28/19 Notice Form 2106 - Home Office Expenses

Home Office Expense Wrk, Line 34 is used on Form 2106, Page 1, Line 4 under certain circumstances. However, when the "State Processing Only" field is marked on federal Screen 2106,1040-US suppresses calculation of the related Home Office Expense Worksheet. As a result, the Line 34 amount of the worksheet becomes zero and thus no corresponding amount is included on 2106, Page 1, Line 4.

For any state that recalculates Form 2106 without recalculating the federal Home Office Expense Worksheet, in this scenario you will have to force (or overrule) the amount of Other Business Expenses to report on state 2106 page 1 line 4 via State Screen XX2106 when the calculation of the Home Office Expense Worksheet is suppressed at the federal level.

You may want to consider leaving the "State Processing Only" field blank on federal Screen 2106. See Note below.

Note: Since traditional (Code "Blank") 2106 expenses are not reported on federal Schedule A (as miscellaneous deduction subject to 2% AGI limitation are no longer allowed at federal level), the 1040-US program omits such calculations from federal Schedule A (as there is no place to report such deduction). You may be able to leave the "State Processing Only" field blank on federal Screen 2106. This allows the Home Office Deduction Wrk to calculate for 2106 purposes. You can double-check to make sure the calculation of the Home Office Worksheet for 2106 purposes has no unintended consequences at the federal level. If no unintended consequences on the federal return itself, you may want to consider leaving that markbox blank on federal Screen 2106.

02/26/19 1120 1065 CT All Notice 02/26/19 Notice Connecticut Pass-Through Entity Estimated Payment Recharacterization
Forms CT-1065/CT-1120SI RRS and Form CT-1065/CT-1120SI RR will not be developed or supported for the 2018 tax year.
02/26/19 1040 MN 18.2.1 Fixed 02/27/19 18.3.2 1040US Schedule LK - Like-Kind Exchange Duplication

When entering a Sale for Federal purposes and a Like-Kind Exchange for state purposes, multiple units are created under Screen MN8824P in the Income & Adjustments folder for the same asset exchange. The Schedule LK-Like Kind Exchange will create a unit for each exchange. This has now been corrected.

02/26/19 1120 Federal 18.3.1 Notice 02/26/19 Notice Form 8990 / Section 163(j) for Corporations

Form 8990, Limitation on Business Interest Expense Under Section 163(j), is still being developed for the corporate program. It is not likely the form will be available before March 15, 2019.  If an S Corporation return requires the Form 8990, it is recommended the return be extended.

As a reminder, the Form 8990 is not required if the taxpayer is a “small business taxpayer”, and does not have excess business interest expense from a partnership. A “small business taxpayer” is defined as a taxpayer that is not a tax shelter, and has average annual gross receipts of $25 million or less for the 3 prior tax years.

A taxpayer is also not required to file Form 8990 if it only has interest expense from these “excepted” trades or businesses:

• An electing real property trade or business

• An electing farming business, or

• Certain utility business

A real property trade or business and a farming business may elect out of the section 163(j) limitation by filing an election under section 1.163(j)-9. The section 1.163(j)-9 election is found on the Elect screen in the Election folder.

See IRS 8990 Instructions for more information on the exclusions from filing the form.

02/20/19 1040 Federal 18.3.1 Fixed 04/01/19 18.3.2 QBID worksheet understates QBI due to W-2 box 14 Health Insurance

The Qualified Business Income was being understated due to Shareholder Health Insurance listed on box 14 of the W-2. This has now been corrected.

With version 18.3.5 a field has been added to include the Self Employed Health Insurance from the K-1 reconciliation worksheet for QBI. This field is located on the K1-7 screen. Enter a 2 - 'Include for S corp' on the Self-employed health insurance deduction from QBI field.

02/25/19 1041 MI 18.3.0 Notice 02/28/19 Notice 1041-MI Electronic Filing
This is the initial year for Michigan 1041 e-filing. The state opened their e-filing system for 1041 as of 2/26/19 for testing and approval with software vendors. Final approval came through 2/28/19 and is available as part of 1041-MI update 18.3.1.
02/22/19 1065 OH 18.3.1 Fixed 04/03/19 Fixed E-File Error: Software ID Not Yet Approved
We are aware of the following rejection with Ohio returns. Database Validation Error: The Software ID provided has not been approved by the Ohio Department of Taxation for the reported tax year. Please contact your software company. (value SoftwareId=18007469 TaxYear=2018 ReturnType=IT1140, rule OHCOM-008). We have contacted Development to get this resolved. For now tell users to be patient and at this moment there is nothing they can do but wait.
02/20/19 1040 Federal 18.3.1 Notice 02/20/19 Notice QBID calculations will be based on Final Regulations
The UltraTax 2018 program will contain QBID calculations based on the final regulations. The IRS has indicated that either the proposed regs or the final regs could be used to calculate the deduction, however a comprehensive list of the items that differ has not been released. For this reason the program currently does not contain a proposed regulations option.
02/25/19 Business 1120 1065 All Notice 02/25/19 Notice Form 8990 / Section 163(j) is approved

Form 8990 applies to businesses with average gross receipts of more than $25 million over a 3 year period.

The Form 8990 regarding the Limitation on Business Interest Expense Under Section 163(j) has been approved. 

02/20/19 1040 Federal 18.3.1 Fixed 02/27/19 18.3.2 Issues with Schedule C Qualified business income (Force) field on C-3
Currently forcing the QBI to be zero on the C-3 screen is suppressing other activities such as Farms from flowing QBI information to the worksheets. Additionally, forcing this amount to zero does not cause the amount on the QBI worksheet to show zero. Schedule SE deductions are still being included in the calculation which causes QBI amounts to be negative. These issues have been corrected.
02/20/19 1040 Federal 18.3.1 Fixed 04/03/19 18.3.4 Section 1231 losses not being included in QBI calculation
Currently, section 1231 losses from 4797 Part 2 are not being included in the QBI calculation when an asset is disposed of in Schedule C business for instance. This will be corrected on a future release.
02/20/19 1040 Federal 18.3.0 Notice 02/20/19 Notice Clergy returns with unreimbursed expenses
Clergy returns have traditionally allowed 2106 expenses to be deducted against Ministerial wages and Self Employment income. These expenses were removed from the 2018 version of Publication 517. The IRS has indicated they will update the Schedule SE instructions to reflect this as well. Expenses such as travel, mileage, meals, etc. may be deducted from Schedule C income.
02/20/19 1065 Federal 18.3.0 Fixed 04/03/19 18.3.3 Fields not properly filling out on 1065X
Several fields on the Form 1065X are not filling out or are transferring incorrect values for the fields. This includes, but is not limited to: Service Center, K-1's being filed, and NonTERFA for pre Jan 1st 2018. These will be corrected on a future release. Consider Amended or Superseding the return in the meantime.
02/20/19 1040 Federal 18.3.1 Verified 02/20/19 N/A 2018 Federal Estimated Payments may be overstated
In the 2017 return if the estimate codes 5 or 9 were entered for 'use amounts entered below' AND 2018 Estimates Paid were entered as well, the combination of both figures may proforma to the 2018 return. Print Previewing the 2017 return and re-proformaing the client will correct the issue.
02/13/19 1065 Federal 18.3.0 Notice 02/13/19 Notice Rejections for Superseded tax return E-Files

Rejection reads: If "Amended Return" or (Superseded for 1120/1120S/1120-F/1041/1065) checkbox is not checked, then taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return.

The IRS has now confirmed the issue is with their E-File system but have not given a timeframe on a fix. In the meantime mark the returns as Amended instead of Superseded. In the explanation for amending enter "Superseded return'.

02/11/19 All All 18.3.0 Notice 02/11/19 Notice Capital Gains calculating on sales of assets that were previously included in Like Kind Exchanges
When an asset is sold that previously was traded via a Like Kind Exchange, the gain on the sale of the asset is being treated as a capital gain. In order for this transaction to include the original depreciation and potentially be treated as an ordinary gain on form 4797 go to Setup > Options > mark the option "Include depr. from original exchanged asset when calculating disposition".
02/07/19 1120 Federal 18.3.0 Notice 02/07/19 Notice 1120S QBI data entry enhanced
The QBI data entry screen for 1120S has been enhanced to allow the addition of units to the QBI screen. This then transfers to the QBI worksheets. Separate amounts for QBI, Qualified Property, Wages, etc. will need to be data entered on the QBI when multiple units exist. They will not flow automatically. Amounts are still aggregated on K-1 box 17. Consider splitting out K-1 activities into multiple units when entering these amounts into other entities such as 1040 and 1065.
02/07/19 1040 Federal 18.2.0 Fixed 02/27/19 18.3.2 Form 1040 line 4a may not display grand total of retirement distributions
When marked to file electronically and there are both taxable pension income and taxable IRA distribution, 2018 Form 1040 Line 4a may not display the full amount. Note that checking the "Print total pensions and IRA distributions" box in Setup, 1040, Other Return Options, Return Presentation, only affects the return when paper-filing not e-filing.  This has been updated after additional information was obtained from the IRS.
02/07/19 1040 AZ 18.2.0 Notice 02/07/19 Notice Qualified Charitable Contributions
New this year, the Forms 321, 322, and 352 require a code to identify the charity or school that is receiving the donation.  The rejection code varies by form such as Form 321 (rule 812), Form 322 (rule 817) and Form 323 (Rule 822). These lists are lengthy and we are not providing a drop down list because of that. The required codes can be found Here
01/31/19 1120 Federal 18.2.3 Fixed 02/07/19 18.3.0 Rent and Royalty Excepted trade or business for Section 163(J)
For rent and royalty units, if attempting to make a selection for Excepted trade or business for Section 163(J), you may encounter issues. When making a selection, a message may appear to enter yynn12 preventing the ability to make a selection.

This has now been corrected on the 18.3.0 update.

01/25/19 1040 States Notice Notice 01/25/19 Notice 1040 State E-Filing Status
Please review TFS 1604123 for latest state e-filing information.
01/23/19 1040 All All Notice 01/23/19 Notice Tax Preparation Fee Allocation
In prior years the tax preparation fees could be coded on the General folder the Letter tab to populate the Itemized Deduction schedule. Due to tax preparation fees no longer being deductible, the Schedule A option has been removed.
There is a suggestion to add this option back for the handful of states that are allowing tax preparation fees as a state-only deduction on the A-St tab. See the TFS below. TFS 1601123
01/22/19 1040 Federal 18.2.2 Notice 01/22/19 Notice Refund Delays for CTC and EIC
The IRS expects the earliest the Additional Child Tax Credit and Earned Income Credit related refunds will be available is 2/27/2019.
01/22/19 1120 WI 18.2.0 Notice 01/22/19 Notice S Corp Election to pay tax at entity level
WI Act 368 allows S corporations to elect to be taxed at the entity level for taxable years beginning on or after 1/1/18. Schedule 5S-ET which will calculate this entity level tax is not expected to be released by the state until July of 2019.
01/18/19 Platform All Notice Notice 01/18/19 Notice eSignature Email Processing and Reminders
eSignature processing has been re-enabled and is back up and running. The initial email push for eSignatures will process as normal however eSignature reminder emails have been temporarily disabled at this time until a later date (TBD).
01/14/19 1065 States 2018 Notice 01/14/19 Notice 1065 State E-filing Status
Please review the TFS for latest state e-filing information.
01/12/19 1120 States 2018 Notice 01/12/19 Notice 1120 State E-filing Status
Please review the TFS for latest state e-filing information.
01/11/19 1041 Federal 18.2.1 Fixed 03/15/19 18.2.2 1041-US: Form 1116, Code A
2017 had a code A for Passive category of income for Form 1116. This does not exist for 2018, the Passive code is C. If the 1041 client was proforma'd after the 18.2.2 update on 01/29/19, then there is no issue. Before this update, the above issue would have occurred. Instead of re-proforma'ing the client, you can review the 2018 1116 Carryover Report from the 2017 return, and manually enter in Screen CO-FTC of the 2018 return.
01/11/19 All All Notice Notice 01/11/19 Notice MFA and Multi-office record (MOR) firms

There is a known issue where the CS Web administrator for Multi-office record (MOR) firm's are unable to generate temporary MFA codes for staff member accounts that are not on the main firm ID. When they attempt to manage MFA on tax.tr.com for the staff member they will either get a 500 - Internal server error or the staff member will show as not having MFA enabled.

If the staff member needs a temporary MFA code (and they haven't generated temporary codes), the only option is for us to generate a code for the staff member. We will need to follow the same process as we do for administrators and will need a letter stating the following: I [name], a CS Web administrator for [firm ID], request a temporary Multi-factor authentication code for [user] because I am unable to generate the code.

For further information on generating temporary codes, see Internal: CS Web administrators with MFA - generating a numerical code for temporary login. For further information on troubleshooting TRID or authentication errors on CS Web, see Internal: Troubleshooting Thomson Reuters ID and authentication errors.

01/09/19 1040 All 18.2.1 Notice 01/09/19 Notice W-2 Datasharing from Accounting CS to UltraTax CS

If you attempt all of the steps in the following datasharing article and the programs still will not datashare, please take a look at the last bullet point in the Internal Notes section:Sharing W-2 data with UltraTax.

There is also a TFS WI: 1518046

Workaround: Rename the x:\WinCSI\Accounting CS Data\ClientID folder to ClientID.OLD. Rebuild Datasharing for that one client in ACS and reprocess the employee copy of the W-2s.

01/05/19 All All 2018 Notice 01/05/19 Notice Tax Cuts and Jobs Act overview
Thomson Reuters has many tools and additional information available related the Tax Cuts and Jobs Act. Start here with this TCJA overview topic.

From there we have information from Checkpoint including an expansive TCJA Toolkit, Data Mining searches from 2017 UltraTax to find affected clients, IRS Resources, and have highlighted most of the major items that have changed as a result of this legislation.

01/05/19 1120 NJ 2017 and 2018 Notice 01/28/19 Various 2018 New Jersey Forms Delay

New Jersey corporate business tax returns are released for UltraTax CS 2017 and 2018.

New Jersey has granted an automatic extension until February 15, 2019 to filers whose original due date falls on November 15, 2018, December 15, 2018, or January 2019. The extension only applies to filing the return and does not extend the time to make all required payments. Refer to New Jersey's website for more information.

01/05/19 All All 2018 Notice 01/05/19 Notice Forms Approval Status
The federal and state taxing agencies do not issue timeframes to software developers for the approval of finalized forms. For more information on forms approval, refer to:
  • Product Information on the UltraTax CS Home Page
  • Help & How-To Center information on form status: Viewing form status
01/05/19 1040 Federal 2018 Notice 01/05/19 Notice TCJA Forms and Calculations
Over 50 provisions of the Tax Cuts and Jobs Act impact individual filers. As a result, many affected 2018 tax forms are awaiting further updates from the IRS. Thomson Reuters is closing monitoring the progress of these form changes and is working with the IRS to determine the nature and scope of the impact for 2018 tax return processing. Updated information regarding processing of these forms for paper and electronic filing will be provided as it becomes available from the IRS.
01/05/19 Business NC 2018 Notice 01/05/19 Notice North Carolina Annual Report
The North Carolina Secretary of State now requires all annual reports be filed using the Secretary of State website.NC Annual Reports Software providers are no longer permitted to provide any annual report forms.
12/17/18 All All 18.1.0 Fixed 12/19/18 18.1.0 Uploading organizers to Onvio

This issue has been resolved.

Organizers sent from UltraTax CS may not appear in Onvio in the following situations:

  • You have customized your organizer collation in the Setup menu of UltraTax CS, or
  • for 1040 organizers, you mark the blank organizer option and choose organizer type 2, 3, 4, or 5 on the Contact screen.
06/21/18 706 FL Notice Notice 06/21/18 Notice 706 Florida Discontinued for 2018
Starting in UltraTax CS 2018, the 706 Florida module will not be available. A federal change eliminated Florida's estate tax for decedents who died on or after January 1, 2005.

A personal representative may still need to complete certain forms to remove any automatic estate tax lien that Florida may impose. For more information, visit the Florida Revenue.

11/19/18 1065 Federal 18.1.0 Notice 11/19/18 Notice 1065 client documents not available for proforma

Due to changes to add tax due and overpayment remittance sections, to remove references to Form 1065-B, to replace tax matters partner (TMP) with partnership representative (PR), and to modify the signature sections for changes in partnership return signature requirements, proforma of the following client documents is not available.

  • Partner Transmittal Letter
  • 1065 Email K-1 Package Greeting
  • Partner K1 Enclosed (TL) Custom Paragraph
  • Elec Funds Withdrawal (TL) Custom Paragraph
  • Elect Out of Sub K Provisions Election
  • Form 1065 Return, Extension, and Amended Instructions
  • Form 2848 Instructions
  • Form 3115 Instructions
  • Form 8716 Instructions
  • Form 8752 Instructions and Amended Instructions
  • Form 8804 Instructions and Amended Instructions
  • Form 8821 Instructions
  • Form 8822-B Instructions
  • FinCEN Form 114 Instructions and Amended Instructions
  • Bank Account Verification Instructions

1065 client documents will be available to edit when UltrTax CS 1065-US 18.2.0 is released the week of December 17th.

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