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Reported Date Entity Product Reported Version Status Modified Date Fixed Version Synopsis
01/19/22 Conversions Conversions N/A Notice 01/19/22 N/A Internal: UltraTax CS Conversion Troubleshooting

The UltraTax CS conversion overview article is an external article that users are able to access on Help & How-To Center.

The following Internal: UltraTax CS Conversion Troubleshooting articles are internal and can be used by Support to troubleshoot Conversion questions.

Internal: UltraTax CS Conversion: Talking points to make on every conversion call you take

Internal: UltraTax CS Conversion: Whom to contact with conversion issues

Internal: UltraTax CS Conversion: Post-conversion reports and guides

Internal: UltraTax CS Conversion: Checking status of conversions

Internal: UltraTax CS Conversion: Changing and deleting appointments in EMS

Internal: Responding to emails from the Conversion Room in KANA

Important: If you still have an issue with a conversion after exhausting your resources, please reach out to an UltraTax Consultant. If the Consultant refers you to email Product Excellence for more information, then please use this Product Excellence team email template when emailing the Product Excellence team about UltraTax CS conversion issues. Do not provide this email address to customers and do not include the customer on the email to the Product Excellence team.

08/16/22 Platform Login N/A Notice 08/16/22 N/A Received Locked Account Email and Cannot Login

Emails that come from Access.info@thomsonreuters.com that state "Unusual access to your account" or “Unsuccessful sign in attempts has locked your account” indicate that the account has been locked. This is the new unlock email. If you receive this email and cannot login, please use the unblock button in the email to unblock the account.

If you continue to receive this email and cannot login, please verify the following:

• If you were previously licensed for Onvio and are no longer, please make sure that you do not have Onvio Link installed on your workstation or any other workstations that you might have used Onvio (or has been used to access Onvio) at your firm.

• If you are licensed for Onvio, please make sure that you are on the latest version of Onvio Link. After doing so, please use the email to unblock your account. If you are not able to unblock your account or did not receive the email to do so, please reset your password.

08/08/22 5500 US 21.3.4 Fixed 08/08/22 21.3.5 E-File Error: I-101EZ

Update: Update 5500-US v.21.3.5 was released on 8/10/22 to fix E-File error I-101EZ. Extensions that received this error can be recreated and transmitted.

The submitted date is greater than the original due date +1, unless form 5500EZ, Line B (Extension of time to file) is checked] or (when the submitted date is greater than the original due date + 79 days and Form 5500-EZ, Line B is checked] and the filing is not an amended filing and reasonable cause is not attached.

07/26/22 Various US N/A Notice 07/26/22 N/A New IRS e-file Application Fingerprinting Process Implemented

In a Quick Alerts for Tax Professionals on June 29, 2022, the IRS announced a new fingerprinting process for e-file providers and electronic return originators (EROs). Individuals are required to use the IRS authorized vendor for fingerprinting. Each new Principal and Responsible Official listed on a new e-file application or added to an existing application needing fingerprints, must schedule an appointment with the IRS authorized vendor. Individuals requiring fingerprints can obtain the scheduling link by accessing the e-file Application Summary page and using the scheduling link on the Terms of Agreement Signature(s) & Personal Information section. This link will only be visible to each Principal and Responsible Official when the application is successfully submitted, and fingerprints are required. Additional information about the new fingerprinting process can be found on the become an authorized e-file provider webpage.

Other Information:

• An EFIN application summary only needs to be submitted to Thomson Reuters if you are applying for a new EFIN or are issued a new EFIN from the IRS, if you are changing your firm name or address, or if you are changing software providers.

• The new IRS electronic fingerprint process applies to a Principal or Responsible Official that is not certified or licensed and is applying for an EFIN or currently has an EFIN.

• If you are certified and licensed, such as an attorney, CPA or enrolled agent, then you would enter your current professional status information when applying for a new EFIN or updating your information.

• If you are not certified or licensed and already have an EFIN, you would retain your current EFIN, but beginning September 25, 2022, the IRS will implement a new electronic fingerprinting process, requiring you to schedule an appointment with the IRS authorized vendor for fingerprinting. There will be no charge for this service. On September 25, 2022, you can schedule your appointment by accessing the scheduling link located on the IRS e-file application summary page. Please see the become an authorized e-file provider for more information.

• If you are not certified or licensed and are applying for an EFIN, then the new electronic fingerprinting process applies to you. Please see become an authorized e-file provider for more information.

06/30/22 1040 US N/A Notice 07/05/22 N/A UltraTax CS 2022 E-Filing Amended Returns and Superseding Returns

According to IR-2022-130, taxpayers now have more options to correct, amend returns electronically. UltraTax CS 2022 will support the e-filing of superseding returns and amending 1040NR returns.

06/27/22 2290 US N/A Notice 07/11/22 N/A Form 2290 in UltraTax CS 2021

Form 2290 in UltraTax CS 2021 was released on 7/1/22.

• Vehicles placed in service on or after July 1, 2022, would use UltraTax CS 2021 to file.

• Vehicles placed in service July 1, 2021 – June 30, 2022, would use UltraTax CS 2020 to file.

06/22/22 1040 US N/A Notice 06/24/22 N/A IRS Rejection Rule IND-412

Update: The IRS replied to our request and let us know that they will be updating their error checking to stop erroneously rejecting returns with the Rule IND-412. Returns that have been rejected by the IRS with the Rule IND-412 code can be recreated again in UltraTax CS and retransmitted to the IRS after Sunday, June 26, 2022. This means the returns can be e-filed again starting Monday, June 27, 2022.

Incorrect Data: /Return/ReturnData/IRS1040/OwedAmt: If 'RefundAmt' in the return has a value greater than zero, then 'OwedAmt' must be equal to zero if an amount is entered. (value #, rule IND-412)

06/21/22 CS Website CS Website N/A Fixed 06/21/22 N/A CS Professional Suite Website Login

Update: The ability to login to the CS Professional Suite website has been restored.

06/21/22 1120 US N/A Notice 07/11/22 N/A IRS Rejection Rule F1120S-273

Update: The IRS has disabled Business Rule F1120S-273. Rejected returns can be recreated and retransmitted.

Rejection Rule F1120S-273: Missing Document: /Return/ReturnData/ IRS1120S/IRS1120SScheduleK /IntntlTaxRelevance RptgInd: If Form 1120S, Schedule K, 'IntntlTaxRelevanceRptgInd' is checked, then Schedule K-2 (Form 1120S), must be attached to Form 1120S, Schedule K, 'IntntlTaxRelevanceRptgInd'. (value X, rule F1120S-273)
06/17/22 1065 US 21.3.5 Fixed 06/22/22 21.3.6 1065-US Data Sharing Functionality

Update: 1065-US v.21.3.6 is available to download via CS Connect. This update was released to fix the data sharing functionality in the 1065-US product. After the update is retrieved, for clients that did not data share information upon opening the client, a print preview is required in the 1065 client prior to opening the client which will receive the data shared information.

Virtual Office CS and Software as a Service will receive the update overnight and it will be available for use in the morning on 6/23/22.

06/06/22 1120 NYC N/A Notice 06/06/22 N/A For New York City Filers: New York State PTET Addback – Effective for 2021

For tax years beginning on or after January 1, 2021, General Corporation Tax (“GCT”) and Banking Corporation Tax (“Bank Tax”) taxpayers are now required to add back New York State Pass Through Entity Tax (“PTET”) deducted from Federal Taxable Income. Unincorporated Business Tax (“UBT”) taxpayers were previously required to add back New York State PTET deducted in 2021. DOF will not apply any interest or impose penalties on additional tax for GCT and Bank Tax taxpayers as a result of these addback amounts if paid by June 15, 2022.

Payment of tax or estimated tax resulting from the addback and otherwise due on or before June 15th, 2022, must be made by all affected taxpayers by June 15th, 2022, in order to receive the relief from interest and penalties described above. Those GCT and Bank Tax taxpayers who have already filed a 2021 tax return must file an amended return showing the addback of the New York State PTET.

Taxpayers filing an original or amended return who are seeking this relief must enter special condition code “PT” in the special condition code box at the top of the return. Please see Finance Memorandum 22-2 for more details, information and instructions.

05/31/22 Platform VO/SaaS N/A Notice 05/31/22 N/A Update 1120 Ohio Cities v.21.3.2 for Virtual Office CS and Software as a Service

Virtual Office CS and Software as a Service will receive the update 1120-OH Cities v.21.3.2 overnight on 5/31/22 and it will be available for use on 6/1/22. Currently, the update is available for desktop users.

05/23/22 1040 PA 21.3.3 Notice 05/31/22 N/A Pennsylvania DOR Clarification on $15,000 Electronic payment requirement

Pennsylvania Department of Revenue (DOR) has provided clarification in response to questions around the new $15,000 electronic payment requirement. Under Act 25 of 2021, passed in June 2021, personal income tax payments made after December 31, 2021, that are equal to or greater than $15,000, must be made electronically. Payments not made electronically will be subject to a penalty equal to 3% of the payment amount, not to exceed $500. The electronic funds transfer (EFT) threshold for taxes other than personal income tax is still $1,000.

The DOR has begun automatically granting relief for first-time recipients of a penalty for one of the following three reasons:

• Bad payment fee

• EFT penalty

• Late filing penalty

To qualify for this DOR relief, taxpayers must not have received a bad payment fee, EFT penalty, late filing penalty, underpayment penalty, or estimated underpayment penalty in the past. The new process generates a Notice of Penalty Adjustment and eliminates the need for customers to file a petition with the Board of Appeals.

The fastest and easiest way to submit an electronic payment is by visiting myPATH.pa.gov.

In UltraTax CS 2021,

• You can modify the 2021 UltraTax/1040-PA filing instructions to reference myPATH.pa.gov, including quarterly estimated payment coupons to reflect this new $15,000 EFT filing requirement if necessary. Refer to Customizing client documents to learn how to edit and save client document changes.

• To determine if you filed a client with Pennsylvania estimate payments equal to or greater than $15,000, you can use the data mining feature in UltraTax CS by navigating to Utilities, and then Data Mining to perform a search for clients that you would like to inform of the penalty if they choose to not pay electronically.

05/26/22 990 All 20.3.9 Open 05/26/22 TBD 990 US fiscal year return blocked by CS Connect

If a user electronically files a 990-US short year return and then electronically files a second full year return in the same tax year and the tax period ending month for both returns are the same, then the second return will receive an error saying that the return was already accepted.

The file name of the accepted return will need to be modified in Connect for for the second return to be e-filed. After the file name is changed on Connect then the user will need to change the client ID, then recreate and retransmit the second return.

05/20/22 Platform Platform N/A Notice 05/20/22 N/A Microsoft is retiring Internet Explorer as of June 15, 2022

A reminder to all CS Professional Suite customers that Thomson Reuters will discontinue IE as a supported browser for all CS Suite products due to Microsoft’s scheduled end of support on June 15, 2022.

Please view Microsoft’s FAQs about the retirement of Internet Explorer for more information.

To ensure the best possible experience, we recommend using Microsoft Edge, Google Chrome, or Mozilla Firefox as your internet browser.

05/19/22 1065 IL N/A Notice 05/19/22 N/A 1065 Illinois Estimated Payment Refunded

We are aware of this and we’re working closely with the state for resolution.

• Estimates filed before 5/10/22 are affected by this.

• Estimates filed after 5/10/22 are automatically corrected before it is transmitted to the state.

Our state contact has informed us that the business processing division has been notified of the circumstances and are being extra diligent in reviewing these electronic payments. They are trying to stop these refunds and instead move the payments to TY2022 on as many of these returns as possible. Our development teams are compiling the list of affected returns which we will forward to the state, to provide as much information as possible to the business processing division.

Also, per our state contact, “If a taxpayer has received a refund, but has not cashed it, they should return the refund to the IDOR with an explanation of the circumstances. The payment then can get reapplied to the correct tax year and given the originally payment date. If the refund has been cashed, then the taxpayer should resubmit the estimated payment(s) as soon as possible. If they are assessed a late payment penalty for the underpayment of estimated tax, they could then request reasonable cause for waiver of the penalty.”

05/19/22 1040 MI N/A Notice 08/02/22 N/A Michigan E-File Rejection Rule 238

Rejection Rule 238: Math Error: Senior/TaxAndRentEligible: MI-1040CR line 38 must equal line 36 multiplied by line 37 (maximum $1500).

Items to be included in property tax clients receiving this error:

• If the client is single and deceased, Enter the "Number of days occupied" and "Property taxes levied" on MI PropTx screen in the MI Credits folder.

• If the client is married and both are deceased, Enter the "Number of days occupied" and "Property taxes levied" on MI PropTx screen in the MI Credits folder.

Note: The number of days occupied is calculated from Jan 1 to the date of death. If the client is married, only one deceased in the year, and the spouse is still living in the same home, there is no proration and the "Number of days occupied" and "Property taxes levied" on MI PropTx screen in the MI Credits folder is not necessary.

05/18/22 1040 AZ 21.3.6 Fixed 06/02/22 21.3.7 1040 Arizona Schema Error: Missing Data Payment Amount

1040 Arizona Schema Error: Missing data in tag FinancialTransaction > StatePayment >PaymentAmount

This schema error has been fixed with update 1040-AZ v.21.3.7. Virtual Office CS and Software as a Service will receive the update overnight and it will be available for use in the morning on 6/3/22.

05/16/22 990 US N/A Notice 05/16/22 N/A May 16 is filing deadline for many tax-exempt organizations

Per IR-2022-93, “The Internal Revenue Service today reminded tax-exempt organizations that many have a filing deadline of May 16, 2022. Those that operate on a calendar-year (CY) basis have certain annual information and tax returns they file with the IRS. These returns are:

• Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)

• Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ

• Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)

• Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code”

01/11/22 Various State E-Filing N/A Notice 01/24/22 N/A Internal: Inactive State E-File Systems

IMPORTANT: The FYI ADOs below are internal, so be mindful of how you are communicating information to the customer.

If e-filing for a state has not been approved yet, please let the customer know that we are working with the state to get e-filing approved and a date is still to be determined. If you see information that we are testing with the state or that we are waiting on the state for approval, that information is internal and you would not tell that to the customer. If you have a question about the information in an ADO below, please see a Senior Consultant (Resolver).

Refer to the following FYI ADOs for information on inactive state e-file systems. A CS Connect update will be pushed out when a state's e-file system becomes available and we receive approval.

1040: FYI 1830040

1120: FYI 1829152

1065: FYI 1828475

1041: FYI 1829179

990: FYI 1829175

Multi-Entity: FYI 1829176

01/24/22 1120/1065 PTET N/A Notice 01/24/22 N/A Internal: Pass-through Entity Level Tax (PTET) Information

IMPORTANT: The FYI ADOs below are internal, so be mindful of how you are communicating information to the customer.

If PTET forms have not been released for a state yet in UltraTax CS, please let the customer know that we are working with the state to get the forms released and a date is still to be determined. If you see information that we are testing with the state or that we are waiting on the state for approval, that information is internal and you would not tell that to the customer. If you have a question about the information in an ADO below, please see a Senior Consultant (Resolver).

Refer to the following FYI ADOs for information on Pass-Through Entity Tax (PTET) returns in UltraTax CS 2021.

1120 PTET: FYI 1830093

1065 PTET: FYI 1830088

04/21/22 1040 US 21.3.5 Fixed 04/21/22 21.3.6 Unable to retransmit rejected extensions

We received reports where customers are unable to retransmit extensions that have been rejected. Customers are seeing the error code F4868-001-02. According to the error code Extensions can only be filed after the tax year-end date, and on or before the return was originally due.

We have released a fix for this today and this should no longer be an issue. Please contact Support if you are still seeing this error code.

04/13/22 VO/SaaS VO/SaaS N/A Fixed 04/19/22 N/A Virtual Office CS and Software as a Service Performance

Since the update that was made the night of 4/15, we have been closely monitoring Virtual Office and SaaS to ensure they continue performing at expected levels.

We know that every minute counts during tax season, and we apologize for the inconvenience this issue has caused. Please visit the Online Product Status for more information.

04/18/22 Various Fed and State N/A Notice 04/18/22 N/A E-Filing and Acknowledgments Around Deadlines

Reminders:

• E-filed returns/extensions that are due are considered timely filed if submitted by 11:59pm local time. We recommend that electronic files are transmitted to Thomson Reuters at least one hour prior to the filing deadline.

• E-File acknowledgement delays can occur on or around deadlines. The stated turnaround time for many taxing jurisdictions is 24-48 hours. While they are capable of processing returns and extensions at a faster rate than that, the volume of E-Files sent during deadlines may cause acknowledgements to be delayed up to 48 hours.

04/18/22 1040 NJ N/A Notice 04/18/22 N/A New Jersey E-File Acknowledgements

Thomson Reuters is transmitting E-Files to New Jersey. New Jersey has a backlog of E-Files that need to be processed and acknowledgements will be delayed. Please be patient and we will post an acknowledgement as soon as the state issues it.

02/14/22 All All N/A Notice 02/14/22 N/A UltraTax CS Spring Deadline Toolkit

Please refer to the UltraTax CS spring deadline toolkit for information on due dates, grace periods, payments, E-Filing and much more.

02/12/22 All All N/A Notice 02/12/22 N/A Resolve E-File Errors

For help resolving e-file errors, please navigate to the article Resolve E-File Errors and search the e-file error code.

Additional E-File Resources:

Master File rejections (1040)

• For additional e-file help, please navigate to the E-File Help Center.

• For general state electronic filing information, please navigate to the State Electronic Filing Guide.

04/17/22 1040 US N/A Notice 04/17/22 N/A Important IRS Electronic Filing Dates for April Deadline

• April 18, 2022 is the last date to transmit Form 114, Report of Foreign Bank and Financial Accounts (FBAR) to FinCEN.

• April 18, 2022 is the last date to transmit timely filed electronic 1040 returns and Form 4868 extensions.

• April 23, 2022 is the last date to retransmit rejected timely filed electronic 1040 returns and Form 4868 extensions.

Processing Reminder: Historically, the 5 days preceding the filing deadline is the highest transmission period for returns and extensions for the IRS. During this period, transmissions and acknowledgements may be delayed. Thomson Reuters recommends that preparers transmit returns and extensions as soon as possible instead of accumulating a large batch of returns and extensions and transmitting them on April 18. Because transmissions are nearly instantaneous, the CS Connect dialog has no option to recall transmitted returns. Also, Thomson Reuters Customer Service does not have the ability to recall transmitted returns.

04/16/22 1120 NYC N/A Notice 04/25/22 N/A NYC Rejection: In Care of Name Invalid

Filer/In Care Of Name: is invalid. (/ReturnState/ ReturnHeaderState/Filer/InCareOfNm)

A percent symbol (%) will need to be input before the In care of field name on screen NYGenC. So, it would look like this "% [In care of field name]". After adding a % symbol at the beginning, the return can be recreated and retransmitted via CS Connect.

04/13/22 UltraTax CS Integration Onvio 21.3.5 Fixed 04/13/22 21.3.5 Long delays sending client copy of returns from UltraTax to Onvio

Update: Currently, there are no delays and this is resolved.

We have seen instances where client copies are taking longer than expected to transmit from UltraTax CS to Onvio. If you experience this issue; please contact Support and reference work item ID 1831038. Support staff will want to troubleshoot and gather some additional information before reporting the issue directly to our Development Team.

04/14/22 1041 LA N/A Notice 04/26/22 N/A Louisiana Trust Acknowledgements

Louisiana addressed the backlog of acknowledgements and they can be retrieved via CS Connect.

04/13/22 1040 US 21.3.5 Fixed 04/13/22 21.3.7 E-File Error: IRS5471ScheduleR Distribution from Foreign Corp

Update: This was fixed with update 1040-US v.21.3.7 on 5/18/22.

Missing data in tag IRS5471ScheduleR>DistributionFromFrgnCorpGrp

We reached out to the IRS on this e-file schema issue and they provided a workaround which will be available on a future update to 1040-US, date to be determined. We will update this alert when we have more information on when the update will be released.

04/07/22 1040 MD 21.3.2 Fixed 04/07/22 21.3.3 Maryland E-File Rejection Form502CR-50120-010

/ReturnState/ ReturnDataState/ Form502CR/ ChildAndDependentCare/ Credit: Part B Line 4 Amount of Credit for Child and Dependent Care expenses - to claim this credit taxpayers FAGI cannot exceed $149,050 for filing status Married Filing Joint and cannot exceed $95,900 for all other filing statuses. (value , rule Form502CR-50120-010)

Update: 1040-MD v.21.3.3 was released on 4/7/22. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 4/8/22. Previously rejected returns should be recreated and retransmitted via CS Connect after applying the update.

04/07/22 1040 OR 21.3.2 Fixed 04/07/22 21.3.3 Oregon E-File Error Other State Credit

File [state]_OTHER_STATE_RET.PDF was included in the transmitted package but is not required by the electronic file.

Update: 1040-OR v.21.3.3 was released on 4/7/22. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 4/8/22. Previously rejected returns should be recreated and retransmitted via CS Connect after applying the update.

04/05/22 All All N/A Notice 04/05/22 N/A E-Filed Return Status Showing as Transmitted

Update: The backlog of e-files have been transmitted to the taxing agencies. Please be patient and an acknowledgement will be posted as soon as the taxing agency issues it.

03/29/22 1040 AL N/A Notice 03/29/22 N/A 1040-AL: Calculation of the updated Federal Income Tax Deduction Worksheet

The Alabama Department of Revenue has updated the Federal Income Tax Deduction Worksheet. The updated worksheet complies with the provisions of Senate Bill 172.

According to Senate Bill 172, “For the tax year ending on December 31, 2021, the federal income tax deduction allowed to individual taxpayers for federal income tax paid or accrued will be calculated without consideration of the reductions in federal tax attributable to any additional federal child tax credit, federal earned income tax credit, or federal child and dependent care tax credit received pursuant to Sections 9611, 9612, 9621, 9622, 9623, 9624, 9625, 9626, and 9631 of the American Rescue Plan Act of 2021 (ARPA). Instead, for any federal income tax reductions attributable to the federal child tax credit, the earned income tax credit, and the federal child and dependent care tax credits, the federal income tax deduction will be calculated as if the individual paid the federal income tax that would otherwise have been paid under the provisions of the Internal Revenue Code in effect on December 31, 2020.”

The main worksheet and some of the supporting calculations have been implemented in UltraTax CS. Additional worksheets are in the process of being implemented to recalculate the remainder of the required credits and will be released on future updates of UltraTax/1040-AL, date to be determined.

The Alabama Department of Revenue recommends waiting until all calculations are automated to file affected returns.

Please refer to the User Bulletin for update 1040-AL v.21.3.2, which was released on 3/29/22, in UltraTax CS 2021 for a spreadsheet that Tax Professionals may use to recalculate the remaining credits. The inputs on screen ALAdj-2 can be used to enter the calculated credit amounts and the return can still be filed despite a critical diagnostic. The User Bulletin can be found by selecting Help, then Bulletins and filtering to 1040 Alabama. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 3/30/22.

03/24/22 1065 & 1120S Minnesota 21.3.0 Fixed 03/25/22 21.3.0 1065/1120S Minnesota Rejection Rule 0340 (1065) and Rule 0840 (1120S)

Rejection Error: Acceptance Validation: /ReturnState/ ReturnDataState/FormM3/ PassThroughTaxAmt: Schedule PTE, line 23 SubTotalAmt must equal M3 line 2 PassThroughTaxAmt. The state is releaseing a fix for this tonight 3/24/22 that will address this issue. Returns can be retransmitted tomorrow after the fix is released.

03/25/22 1120 CA 21.3.0 Fixed 03/29/22 21.3.2 California Shareholder not electing PTET receives amount on K-1, line 13d

Update: 1120-CA v.21.3.2 was released on 3/29/22 to fix this. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 3/30/22.

03/23/22 1040 US 21.3.3 Fixed 03/24/22 21.3.4 E-File Rejection X0000-005 Referencing the IRS2210 Record

The IRS recently updated their programming for processing electronic files to use an updated schema version. This has resulted in some errors for 1040-US electronic files transmitted from UltraTax 2021 starting on Sunday, March 21, 2022. The error is X0000-005 and will reference the IRS2210 record.

Update: 1040-US v.21.3.4 was released on 3/24/22. Returns rejected for the X0000-005 error because of the IRS2210 record changes can be recreated and transmitted again after applying the update.

03/23/22 Platform Organizers 21.3.0 Verified 03/29/22 TBD Onvio Web Organizer fails when retrieving into UltraTax CS

We identified an Onvio Questionnaire update that occurred on 3/17 causing questionnaires to fail during an UltraTax CS retrieval when one or more dependents exist for the client. A temporary fix was released on 3/25 which removed the dependents IP PIN line in the questionnaire report. This will allow all existing questionnaires to be retrieved in UltraTax CS. A future update, date to be determined, to Onvio Questionnaires will reimplement the IP PIN line in the report.

03/22/22 1065 LA N/A Notice 03/31/22 N/A 1065 Louisiana E-Filing

Update: 1065-LA v.21.3.0 was released on 3/31/22. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 4/1/22.

03/19/22 1040 US N/A Notice 03/19/22 N/A Pass-through Entity Tax Credit for a 1040 Return

Please see the following Help and How-To article for information on how to enter a pass-through entity tax (PTET) credit for a 1040 return.

03/21/22 1040 US N/A Fixed 03/21/22 N/A Rejection Rule F2441-027

Rejection: If Form 2441 is present in the return, then Schedule 3 (Form 1040) 'CreditForChildAndDepdCareAmt' and/or 'RfdblCrForChildAndDepdCareAmt' will have a non-zero value. (F2441-027)

Update: The IRS disabled error code F2441-027 as of 11:15 AM ET, 3/23/22. Returns previously rejected by the IRS with the error code can be recreated and transmitted again. Returns with a Form 2441 with no credit reported on Schedule 3 (Form 1040) should no longer be rejected if it was transmitted to the IRS and processed after 11:15am EST today, 3/23/22.

03/17/22 1041 US N/A Notice 03/17/22 N/A E-File Rejection Rule R0000-901-01

Rejection Rule R0000-901-01: Filer's EIN and Name Control in the Return Header must match data in the e-File database.

This is considered a master file rejection since the EIN and Name Control do not match what the IRS has on file in the E-File database.

Solution

Review the EIN on the 1041 screen. If the EIN is incorrect, correct it and recreate the e-file and transmit the return.

If the EIN is correct and you reviewed the name control guidelines for 1041 electronic filing, contact the IRS e-help Desk at 866-255-0654 to correct the issue. If the problem can't be resolved with the IRS, you will have to paper file the return.

03/15/22 1065 IL 21.3.2 Fixed 03/22/22 21.3.3 E-File Rejection IL1065-12010-1

Incorrect Data: /ns:ReturnState/ns: ReturnDataState /ns:FormIL1065 /ns:Step8/ns: PassThruEntityTax: FormIL1065 Step 8 Line 61 must equal FormIL1065 Step 8 Line 60 multiplied by X.XX%

Update: 1065-IL v.21.3.3 was released on 3/22/22. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 3/23/22.

03/15/22 1120 OH 21.3.1 Fixed 03/18/22 21.3.2 Ohio E-File Rejections

Update 1120-OH v.21.3.2 was released on 3/18/22 to fix the rejections below. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 3/19/22. Affected returns can recreate and retransmit after applying the update via CS Connect.

• (/ReturnState/ ReturnDataState/ FormOHITK1/ITK1Detail/ DepreciationInfo/ CurrentYearAddback/ TotalAmount)

• Form OHITK1/ ITK1Detail/ Investors Share Of Ohio Income/Guaranteed Payments And Comp: 'Ohio Amount' is required.

• (/ReturnState /ReturnDataState/ FormOHITK1/ ITK1Detail/ InvestorsShare OfOhioIncome/ Guaranteed PymtsAndComp)

• Form OHITK1/ITK1Detail/Investors Share Of Ohio Income/Net Ohio Depreciation Adjustment: 'Ohio Amount' is required.

• (/ReturnState/ ReturnDataState/ FormOHITK1/ ITK1Detail/ InvestorsShare OfOhioIncome/ NetOhio Depreciation Adjustment)

03/14/22 1120 IA 21.2.1 Fixed 03/17/22 21.3.1 Iowa Form 4136 Schema Error

Schema error: /ReturnState/ ReturnDataState/ FormIA4136/ UndyedDieselTaxedAt325

Update: 1120-IA v.21.3.1 was released on 3/17/22 to fix this schema error. Virtual Office CS and Software as a Service will receive the update overnight and it will be available in the morning on 3/18/22. Affected returns can be created and transmitted after applying the update via CS Connect.

03/15/22 1040 US N/A Notice 03/15/22 N/A Form 8962, Premium Tax Credit and Electronic Filing Error Code F8962-006-01

If Form 8962, Box A is marked to indicate unemployment compensation was received by the taxpayer, or spouse if applicable, then Form 8962, line 5, Household income as a percentage of federal poverty line should be 133%. This percentage is used according to page 8 of the Form 8962 instructions and the IRS’s Known Issues and Solutions for electronic filing. If Box A is marked and line 5 is not 133%, the IRS will reject the return with error code F8962-006-01. Thomson Reuters is seeing numerous rejects because tax preparers are overriding line 5 on Form 8962.

Also, for Form 8962 filers, if the result of line 3, Household income, divided by line 4, Federal poverty line, equals 400% or greater, Form 8962, line 5 should be no greater than 401%. This is according to Worksheet 2, Household Income as a Percentage of the Federal Poverty Line, in the Form 8962 instructions. Further, for electronic filing purposes, if line 5 calculates to 400%, then 401% should be used for electronic filing purposes to pass the IRS’s electronic filing error checking. This is an IRS workaround for their error checking from the IRS Known Issues and Solutions for electronic filing. If Form 8962, line 5 is overridden to be greater than 401% and is electronically filed, the IRS will reject the return with error code F8962-006-01.

03/14/22 1040 CA N/A Notice 03/14/22 N/A 1040-CA - SB 113 / PTE Credit / Sch P(540) changes - Modified Legislation passed 2/9/22

SB 113 / Schedule P(540) – Code 242 Pass-Through Entity Elective Tax Credit

1040-CA version 21.3.4 is tentatively planned for release via CS Connect the week of Monday, March 21, 2022 to coincide with changes from the Franchise Tax Board to allow processing of returns for which the allowed amount of Pass-Through Entity Tax Credit is determined under revised legislation per the provisions of SB 113. With the upcoming release, the Code 242 Pass-Through Entity Elective Tax Credit will default to being reported on Schedule P(540/540NR), Section B2, where it can offset Tentative Minimum Tax per the revised legislation addressed by SB 113. In prior versions of UT21/1040-CA, the credit is reported on Schedule P(540/540NR), section A2, where it was subject to Tentative Minimum Tax restrictions under the original legislation. We will update this notice if anything pertaining to the release changes.

California Franchise Tax Board advises that taxpayers who already filed a Form 540 or Form 540NR return which claimed the code 242 credit (under the provisions of the original legislation) and who could benefit from the revised legislation have the following options:

• Amend the 2021 return, claiming the credit in Section B2 of Schedule (P540/540NR), further reducing the current year tax liability and reducing or eliminating any credit carryforward to future years. With the 1040-CA version 21.3.4 release, the credit will default to Section B2 of Schedule P(540/540NR).

• Do nothing further for 2021. If taxpayer does not wish to amend the 2021 return, they may use all of the credit carryforward generated by the return filed under the original legislation in future years. To preserve the calculation under the original legislation (where code 242 credit is reported on Schedule P(540/540NR) in Section A2), on Screen CACr mark the new field “Report Pass-Through Entity Elective Tax Credit on Sch P(540/540NR), Section A2 instead of Section B2 for return already filed.” This field, available with 1040-CA version 21.3.4, is intended only for 2021 Form 540/540NR returns which have already been filed and which claimed the Code 242 Pass-Through Entity Elective Tax Credit on Schedule P(540/540NR), Section A2 under the original tax legislation. If this field is marked, a Form 540/540NR electronic file cannot be created.

 

DATAMINING SEARCH

With 1040-CA version 21.3.4, use the following calculated values in a DataMining search to find Form 540/540NR returns already filed that claim the Pass-Through Entity Elective Tax Credit:

• Pass-Through Entity Elective Tax Credit - Amt Used

• Pass-Through Entity Elective Tax Credit - Carryover to Next Year

03/14/22 1040 AZ N/A Notice 03/24/22 N/A Arizona SBI Forms

1040-AZ v.21.3.4 was released on 3/24/22 which included Arizona SBI electonic file approval.

03/04/22 1065 CA N/A Notice 03/14/22 N/A 1065 California Pass-Through Entity Tax

Update: 1065-CA v.21.3.4 was released on 3/14/22. This release includes the ability to create and electronically file returns that include the Pass-Through Entity Elective Tax with the California Franchise Tax Board. Virtual Office CS and Software as a Service will receive the update overnight and it will be available for use in the morning on 3/15/22.

Also, if a taxpayer is affected by SB113, the CA FTB recommends they wait to file. CA FTB will be updating forms and instructions and UltraTax CS will include those changes in a future release. We will update this notice when we have more information on the release.

01/10/22 All All N/A Notice 01/10/22 N/A Viewing Forms Approval Status (Including Electronic Filing)

The UltraTax CS Home Page can be used to determine the approval status of federal and state forms for all entities without having to contact Thomson Reuters Customer Support. To do so, click the Product Information link, click the applicable product, such as 1040, click the Federal (or State) link, and then click the Form status link. Also, UltraTax CS generates a diagnostic message for each return that includes a form not yet approved. To view these messages in the Diagnostics pane, choose View > Diagnostics > Forms Approval tab when you have the return open in UltraTax CS.

Notes:

  • If you see a form that is not approved in the diagnostics and it does not show on the UltraTax CS Home Page Forms Status, then please review the latest User Bulletin for more information on that form.
  • The federal and state taxing agencies don’t issue timeframes to software developers for the approval of finalized forms.
  • Forms that are approved or that don’t require approval are not listed. Once all forms are approved, the Form status will state, “All forms may be filed.”
  • Forms approval is generally a separate process from receiving approval to e-file returns with federal and state agencies due to factors such as scan lines or 2D barcodes, as well as the required testing for software developers of schemas and business rules with agencies.

Refer to the State electronic filing guide to view state taxing authority contact information, as well as certain state electronic filing requirements, processes and deadlines.

01/26/22 Various US N/A Notice 02/11/22 N/A Forgiveness of Paycheck Protection Program (PPP) Loans

Please see the following articles for more information about forgiveness of Paycheck Protection Program (PPP) Loans in UltraTax CS.

1040-US: Report Paycheck Protection Program (PPP) Loan information

1120-US: Entering PPP loan forgiveness

1065-US: Paycheck Protection Program (PPP) loan information

02/25/22 1040 US 21.3.0 Verified 02/25/22 TBD E-File Error: F8379-021 NonrefundableCreditsAmt

If Form 8379, 'NonrefundableCreditsAmt' in 'JointReturnAmtGrp' has a non-zero value, then it must be equal to Form 1040, 'TotalNonrefundableCreditsAmt'.

E-File Error F8379-021 was put in place to prevent the IRS from rejecting the return. We will push out an update once the IRS updates their e-file system to prevent the return from being erroneously rejected. We do not have an estimated date as to when that will be and there is not a workaround to be able to e-file the return.

01/25/22 1040 US N/A Notice 02/01/22 N/A Rejection Rule: F8962-070

The e-File database indicates that Form 8962 or a binary attachment with description containing "ACA Explanation" must be present in the return.

Update: The IRS has verified the F8962-070 error code is working as intended. For returns rejected with F8962-070, either Form 8962 needs to be included in the electronic file or a statement containing the reason(s) Form 8962 is not required needs to be attached to the electronic file using the description ACA Explanation. With the UltraTax CS 1040 v.21.3.0 update released on 2/1/22, a new statement field has been added to Screen Coverage in the Health Care input folder, Reason(s) why Form 8962 not required with return (ELF only for ACA Explanation in F8962-070 rejection). If Form 8962 is not required to be attached to the return, enter the reason(s) why in this statement to include the IRS required ACA Explanation binary attachment in the electronic file. After entering the reason(s), the electronic file can be recreated and retransmitted.

Virtual Office and Software as a Service will receive the update overnight and it will be available in the morning on 2/2/22.

02/15/22 1120 SC 21.3.0 Fixed 02/22/22 21.3.1 South Carolina Scheme Error: Field does not accept negative values SchSC1120SK1 > Nettaxableincome

If South Carolina Schedule SC 1120S K-1, Line 14 results in a negative value and you receive this schema error when attempting to create the e-file, then override Schedule SC 1120S K1, Line 14 to 0 to qualify the e-file.

Update: This was fixed with update 1120-SC v.21.3.1 on 2/22/22. Affected returns can be recreated and transmitted via CS Connect after applying the update.

02/15/22 1120/1065 US N/A Notice 02/18/22 N/A Schedules K-2 and K-3

If you are on or above the updates listed below and Schedule K-2/K-3 are printing with the return, they are automatically included as a PDF attachment to the electronic file.

• 1120-US v.21.3.0 released on 2/8/22

• 1065-US v.21.3.1 released on 2/10/22

The IRS has issued Schedules K-2 and K-3 Frequently Asked Questions (Forms 1065, 1120S, and 8865) , that includes further details on additional relief for certain partnerships and pass-through entities without foreign activities, which won’t have to file Schedules K-2 and K-3 with their tax returns for 2021.

In general, to qualify for this exception, the following must be met:

In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates or foreign trusts.

In tax year 2021, the domestic partnerships or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated or may reasonably expect to generate foreign source income (see section 1.861-9(g)(3)).

In tax year 2020, the domestic partnership or S corporation did not provide to its partners or shareholders nor did the partners or shareholders request the information regarding (on the form or attachments thereto):

• Line 16, Form 1065, Schedules K and K-1 (line 14 for Form 1120-S), and

• Line 20c, Form 1065, Schedule K and K-1 (Controlled Foreign Corporations, Passive Foreign Investment Companies, 1120-F, section 250, section 864(c)(8), section 721(c), partnerships, and section 7874) (line17d for Form 1120-S).

The domestic partnership or S corporation has no knowledge that the partners or shareholders are requesting such information for tax year 2021.

Refer to IR-2022-38 for further information.

01/26/22 1040 TN N/A Notice 01/26/22 N/A Tennessee Franchise Tax Return FAE-170

In UltraTax CS 2021, Tennessee 1040 did not have a proforma release. The Tennessee Franchise Tax return FAE-170 will be available in a future release which is still to be determined. The INC 250 Individual Income Tax Return has expired per Tennessee law and has been removed from the software.

12/28/21 Various Various N/A Notice 1/18/22 N/A Hurricane Ida Tax Relief extended to February 15, 2022 for part or all of six qualifying states

Please see the following Help & How-To Center article for how to handle Disaster procedures in UltraTax CS.

The IRS announced on December 22, 2021 in IR-2021-254, that victims of Hurricane Ida in six states now have until February 15, 2022, extended from January 3, 2022, to file various individual and business tax returns and make tax payments. The updated relief covers the entire states of Louisiana and Mississippi, as well as parts of New York, New Jersey, Connecticut and Pennsylvania. The current list of eligible localities is always available on the Around the Nation section of the IRS Disaster Relief page.

The updated relief postpones various tax filing and payment deadlines that occurred starting on dates that vary by state:

  • August 26, 2021 for Louisiana
  • August 28, 2021 for Mississippi
  • August 31, 2021 for Pennsylvania
  • September 1, 2021 for New York, New Jersey and Connecticut

Affected individuals and businesses will have until February 15, 2022, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2020 return that ran out on October 15, 2021, will now have until February 15, 2022, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.

The February 15 extended deadline also applies to quarterly estimated income tax payments that were due on September 15, 2021, and January 18, 2022. This means that taxpayers in these areas can now skip making their estimated tax payments for both the third and fourth quarters of 2021 and instead include them when they file their 2021 return.

Refer to IR-2021-254 for more information on the extended Hurricane Ida relief.

12/06/21 Business E-Filing Business E-Filing N/A Notice 12/06/21 N/A IRS Business E-File Shutdown

Business E-File Shutdown:

Please make sure to have any Business E-Files (State & Federal) transmitted prior to 10:00 a.m. Eastern time on Sunday, Dec. 26, 2021. The IRS will officially shutdown Sunday, Dec. 26, 2021 at 11:59 a.m. Eastern time for sending transmissions, but E-Files need to be transmitted before 10:00 a.m. Eastern time. Any acknowledgements not retrieved by 11:59 A.M. Eastern time on December 26th cannot be accessed until Business MeF opens for production in January 2022.

09/03/21 1040 US N/A Notice 12/06/21 N/A Hurricane Ida Disaster Relief

The IRS has expanded Hurricane Ida relief to more states and localities since August 26, 2021. Visit the Tax Relief in Disaster Situations page for the latest, which indicates the federal income tax filing due date for individuals impacted by Hurricane Ida for the 2020 tax year will be automatically extended to January 3, 2022. Individual taxpayers do not need to file any forms or call the IRS to qualify for the automatic federal tax filing and payment relief. The tax relief postpones various tax filing and payment deadlines that occurred starting on August 26, 2021. As a result, affected individuals who had a valid extension to file their 2020 return due to run out on October 15, 2021, will now have until January 3, 2022 to file. The IRS noted that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.

The January 3, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2021, and the quarterly payroll and excise tax returns normally due on November 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15, 2021. Businesses with extensions also have the additional time including, among others, calendar-year corporations whose 2020 extensions run out on October 15, 2021.

In addition, penalties on payroll and excise tax deposits due on or after August 26 and before September 10, will be abated as long as the deposits are made by September 10, 2021.

Refer to User Bulletin 1040-US v.20.3.13 software update for more information around Hurricane Ida disaster relief in UltraTax/1040.

Note: Beginning November 20, 2021, the IRS will suspend all 1040 MeF electronic filing processing for yearly maintenance, including returns that qualify for disaster relief as well as Form 1040-X, Amended return.

State Tax Returns

The federal tax filing deadline postponement to January 3, 2022, only applies to certain federal income tax returns and tax (including tax on self-employment income) payments, not state tax payments or deposits or payments of any other type of federal tax. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details for any related Hurricane Ida disaster relief.

12/01/21 1120 NJ N/A Notice 12/01/21 N/A New Jersey Fiscal Year Forms

The New Jersey Division of Taxation has not yet announced an automatic extension due date for corporate returns for July 31, 2021 thru November 30, 2021 fiscal year ends. It is recommended that filers whose normal return due date will lapse prior to any such announcement being made, should file their extension for Form CBT-100, CBT-100S or CBT-100U online prior to their normal due date in order to avoid potential penalty and interest calculations by the New Jersey Division of Taxation. The New Jersey website for making corporate online payments can be accessed here.

11/23/21 Virtual Office CS Platform N/A Notice 11/23/21 N/A Virtual Office CS Users: Opening Application prompts with Firm ID and PIN

If you are a Virtual Office CS user and you attempt to access a CS Professional Suite application and are being prompted to input a firm ID and PIN, please login to Your Account and verify that you have renewed your software.

11/18/21 Platform Platform N/A Notice 11/18/21 N/A UltraTax CS on Windows 11

UltraTax CS is supported in the Windows 11 environment.

11/05/21 NetFirm CS NetFirm CS N/A Notice 11/05/21 N/A Multi-Factor Authentication Setup

Here are the resources for setting up Multi-Factor Authentication in our Multi-Factor Authentication Overview. If you are having further issues please go to Contact Us with description of your issue and we can assist.

11/04/21 NetFirm CS NetFirm CS N/A Notice 11/04/21 N/A Locked accounts and unlock procedure

If you or someone at your firm or a client of your firm is locked out of their account, please go to Contact Us with the logins that require unlock and we will unlock.

11/01/21 1040 US N/A Notice 11/01/21 N/A Families with Child Tax Credit (CTC) and reporting income changes via new IRS portal

Beginning on Monday, Nov. 1, 2021, the IRS will launch a new feature allowing any family receiving monthly Child Tax Credit payments to update their income using the Child Tax Credit Update Portal (CTC UP), found exclusively on IRS.gov. In addition, the IRS in late November will launch a new Spanish-language version of the CTC UP.

The IRS urges families to enter any significant income changes by midnight on November 1, 2021 in order for them to be reflected in their November payment, scheduled for November 15, 2021. If a family is unable to make the changes on November 1, 2021, they can enter them by November 29, 2021 so they are reflected in the December payment. Once the update is made, the IRS will adjust the remaining payment amounts to ensure people receive the total advance payment for the year. For married couples, if one spouse makes the income update, it will apply to both spouses and could impact both spouses’ future monthly advance payments of the Child Tax Credit. Refer to IR-2021-211 for more information on how the IRS will adjust CTC payments.

UltraTax/1040 Data Mining has predefined searches for the Child Tax Credit Qualifying Children, Child Tax Credit Qualifying Children Next Year, Child Tax Credit/Credit for Other Dependents clients, Children no longer qualifying for child tax credit – Current Year, and Children no longer qualifying for full child tax credit – Next Year to help you identify clients with the CTC data entry. You can also make your own user-defined letters to mail or email your clients on what action they need to take around IR-2021-211 . To open the UltraTax CS Data Mining feature, choose Utilities > Data Mining.

10/29/21 1040 US N/A Notice 10/29/21 N/A 2022 PTIN Renewal Period Underway for Tax Professionals

The IRS announced that the PTIN system is ready to accept applications for 2022. Anyone who prepares for compensation or helps prepare, all or substantially all of tax returns, or claims for refunds must have a PTIN. Paid return preparers must have valid, current PTINs to prepare tax returns. All current PTINs will expire December 31, 2021.

For those who already have a 2021 PTIN, the renewal process can be completed online and only takes a few moments. If you can’t remember your user ID and password, or requirements for federal tax professionals, there are online tools to assist you. Preparers can get started at IRS Tax Professional PTIN System.

10/14/21 1040 NY N/A Notice 10/14/21 N/A New York Extended Relief for Taxpayers Impacted by Post-Tropical Depression Ida

New York State Department of Taxation and Finance announced an extension of certain October 15, 2021 deadlines for taxpayers affected by Post-Tropical Depression Ida until January 3, 2022. This relief has further extended certain tax filing and payment deadlines for taxpayers who were directly affected by Post-Tropical Depression Ida. Please refer to N-21-5, Announcement Regarding Extension of Certain October 15 Deadlines for Taxpayers Affected by Post-Tropical Depression Ida, to learn more on who is eligible, and type of relief granted. There will be no UltraTax CS 1040-NY software update for this extended relief.

10/08/21 FinCEN FinCEN N/A Notice 10/08/21 N/A FinCEN Provides FBAR Relief to Victims of Recent Natural Disasters

The Financial Crimes Enforcement Network (FinCEN) issued a notice extending the filing date of Reports of Foreign Bank and Financial Account (FBARs) for victims of recent natural disasters, including Hurricane Ida, the California wildfires, and Tropical Storm Fred. Victims of recent natural disasters will have until December 31, 2021 to file FBARs for the 2020 calendar year. FinCEN is offering this expanded relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. Should FEMA designate other localities affected by these natural disasters as eligible for individual assistance at a later date, FBAR filers in those additional localities will receive the same filing relief automatically.

10/08/21 FinCEN FinCEN N/A Notice 10/08/21 N/A FinCEN Form 114 (FBAR) October 15th Deadline for Foreign Bank and Financial Account Holders

Filers missing the April 15, 2021 annual due date earlier this year received an automatic extension until October 15, 2021, to file the FBAR. They did not need to request the extension. Thomson Reuters recommends that preparers transmit FBAR as soon as possible instead of accumulating a large batch and transmitting on October 15th.

Refer to User Bulletin 1040US-20.3.1: Electronic Filing – 1040 Processing Procedures for more information on the UltraTax CS processing steps for electronically filing FinCEN Form 114.

10/08/21 1040 US N/A Notice 10/08/21 N/A Unemployment Compensation Exclusion for Community Property States

On July 7, 2021, IRS guidance clarified that for married filing joint taxpayers residing in a community property state, the Unemployment Compensation Exclusion worksheet should split the unemployment income equally when calculating the exclusion. This calculation was updated in UltraTax CS 1040 on July 15, 2021 with 1040-US v.20.3.12. For more information, please see 2020 Unemployment Compensation Exclusion FAQs — Topic A: Eligibility.

10/07/21 1065 & 1120 NY N/A Notice 10/07/21 N/A New York Pass-Through Entity Tax (PTET) Election

According to the New York Department of Taxation and Finance, the Pass-Through Entity Tax (PTET) election can only be made by an authorized person. Tax professionals may not make this election on behalf of their clients. Therefore, there is not a way to make this election in UltraTax CS.

Please refer to the New York Department of Taxation and Finance article Pass-Through Entity Tax for more information.

10/04/21 Platform Platform 20.3.4 Notice 10/04/21 N/A Ability to Download Electronic Filing Acknowledgements Automatically Removed

The ability to download electronic filing acknowledgements automatically by checking the box in Setup > System Configuration > CS Connect tab was removed with UltraTax CS Platform version 20.3.4. This functionality will no longer work. To manually retrieve electronic filing acknowledgements via CS Connect, click the CS Connect button in the UltraTax CS toolbar. In the Options tab, click the Electronic filing: Retrieve acknowledgements switch to set it to Yes, and then click the Connect button.

If a customer contacts us regarding this, please add the firm ID to the Firm's Impacted in ADO 1824619.

IMPORTANT: Please log tickets in Flash for this by using the following information.

• Product: TAXPLATW

• Topic: CONN (CS Connect)

• Sub-topic: BGDL (Background Services)

• KB Case #: Acks

ADO 1824619

08/30/21 990 US 20.3.7 Open 08/30/21 TBD 990-T is being included in the Public inspection copy for a 501(c)(6)

The public inspection copy includes Form 990-T for organizations other than 501(c)(3). The work around is to change the print condition of Form 990-T and related forms and schedules to 'Never' in the Government collation when generating the public inspection PDF.

04/07/21 1065, 1120 All N/A Notice 04/07/21 N/A Economic Injury Disaster Loans (EIDL) treatment in UltraTax CS

According to the American Rescue Plan Act of 2021, generally the EIDL advances made by the SBA aren't included in income. However, because there may be other variables to consider, it is ultimately up to the preparer to determine how EIDL advances should be reported on the tax return, and therefore entered into UltraTax CS.

If you have a license to Checkpoint, you can search "Economic Injury Disaster Loans (EIDL)" and find several resources to help determine the impact of EIDL advances for businesses.

03/16/21 All US N/A Notice 03/16/21 N/A Superseding Returns

Superseding returns is not available for 1040 Individual returns.

According to Pub. 4164, “The superseding return designation is available for Forms 1041, 1120, 1120-F, 1120-S and 1065. The superseding return designation is not available for Forms 990, 990-EZ, 990-PF, 1040, 1120-POL and 2290. The amended return box must be checked for any subsequent Forms 990, 990-EZ, 990-PF or 1120- POL returns to be accepted.”

03/13/21 1065, 1120 MI N/A Notice 03/13/21 N/A MBT - Michigan Business Tax Availability
The MBT (Michigan Business Tax) return was replaced by the CIT (Corporate Income Tax) back in 2011.

Post 2011, the MBT was only to be used for certain credits that had not been fully utilized. See below.

“…which enables certain MBT taxpayers with certificated or awarded credits to continue using those credits once the CIT is in place. Such taxpayers may elect to continue filing and paying under the MBT until the expiration of the previously-awarded certificated credits.” (Examples of credits: rehabilitation, film production, community endowment fund, and education endowment fund)

CIT/MBT Information

In the 10 years since 2011 very few credits should remain, therefore, the MBT forms will not be available in UltraTax CS 2019 and forward.

02/22/21 Platform Integration 20.3.1 Verified 09/17/21 UltraTax CS 2021 Printing to Onvio: Missing Returns and K-1 packages in send screen

Firms printing the preparer copy from UltraTax CS to Onvio experience an issue where this screen is completely empty.

This item will be fixed in UltraTax CS 2021. However, there are 2 workarounds that can be used in the meantime:

Workaround 1:

The workaround is to remove the apostrophe from the client name and print again.

Workaround 2:

The workaround is to Unmark the option in Setup > Office Configuration, to print K1 packages to Onvio Documents if the K1 recipient is also an UT client

Our teams are currently investigating a solution to the behavior. We apologize for the inconvenience.

01/20/21 1065 US N/A Notice 01/20/21 N/A Schedule M-2 and Schedule K-1, item L – Partners’ Capital Accounts

Form 1065 instructions indicate that Schedule M-2 and Schedule K-1, item L (item F for Form 8865 returns), Partner Capital Accounts is to be reported on tax basis. If tax-basis capital was calculated last year using the Partners’ Tax Basis Capital Accounts Worksheet, Screen M1M2, Capital account at the beginning of year proformas from ending capital on the tax capital worksheet. If tax-basis capital was not calculated last year, ending capital from Schedule K-1, item L proformas to Screen M1M2, Capital account at the beginning of year.

Notes:

▪ For all clients proforma’d from prior year UltraTax CS/1065, an FYI diagnostic will indicate whether the amount proforma’d to Screen M1M2, Capital account at the beginning of the year is from the prior year Schedules M-2 and K-1 ending capital amount or the prior year ending tax-basis capital amount from the Partners’ Tax Basis Capital Accounts Worksheet.

▪ If Schedule M-2 and Schedule K-1, item L were reported using a method other than tax basis in the prior year, beginning capital on Screen M1M2 may need to be adjusted for this year’s reporting requirements.

Please review the description at the bottom of ADO 1808947. There is a lot of useful information outlining the changes.

ADO 1808947

02/12/21 Various US N/A Notice 02/12/21 N/A COVID-19 Paid Leave Tax Credit Eligibility Tool

Thomson Reuters has launched the COVID-19 Paid Leave Tax Credit Tool that may be used to determine if an employer is eligible to take a tax credit for providing qualified leave wages for coronavirus (COVID-19) related reasons. This new free tool asks a series of questions designed to determine whether an employer may be eligible to claim a tax credit for providing COVID-19 emergency paid sick leave and/or expanded family leave. The tool provides a brief overview summarizing the available tax credit and the recent extension. In addition, the tool walks through a series of Yes/No questions to determine if they are eligible to claim a credit for providing qualified leave wages in the first quarter of 2021. It outlines types of leave that qualify for the tax credit and also provides the maximum amounts of qualified leave wages eligible for the credit. Finally, the tool explains how the credit may be claimed.

02/05/21 1065/1120S US N/A Notice 02/05/21 N/A Business Interest Expense Limitation - Frequently Asked Questions

1065-US:

Question: Why aren’t adjusted taxable income and business interest income for business interest expense being reported on Schedule K-1, Other Information?

Answer: Based on Regulation 1.163(j)-6(m), the interest expense from an exempt Partnership is not subject to further limitation under Section 163(j). The partner’s share of the Partnership’s business interest expense, adjusted taxable income, and business interest income is no longer included on the Form 8990 filed by the partner.

1120-US:

Question: Why aren’t adjusted taxable income and business interest income for business interest expense being reported on Schedule K-1, Other Information?

Answer: Based on Regulation 1.163(j)-6(m), the interest expense from an exempt S Corporation is not subject to further limitation under Section 163(j). The shareholder’s share of the S Corporation’s business interest expense, adjusted taxable income, and business interest income is no longer included on the Form 8990 filed by the shareholder.

01/29/21 Platform Integration 20.3.0 Open 01/29/21 TBD UltraTax 2020.3.0 Onvio Document Rename window on Virtual Office

Printing from Virtual Office UltraTax CS 2020 to Onvio does not bring up the Confirm Documents window - It is currently necessary to open Onvio Link on Virtual Office before UltraTax CS 2020 in order to have the Confirm Documents window when printing from UltraTax CS 2020 to Onvio. If Onvio Link is not opened prior to UltraTax CS 2020, then the document will automatically upload with the original name.

09/30/20 Platform All N/A Notice 09/30/20 Notice Removal of reCAPTCHA

Thomson Reuters utilizes current security best practices as part of our commitment to our customers. Along with many in the industry, including current IRS Safeguards, we rely on the National Institute of Standards & Technology (“NIST”) for security policies and practices. Due to recent changes to the IRS Trusted Customer Requirements for 2021, Thomson Reuters has removed the use of reCAPTCHA in the login process for Onvio, NetFirm CS, NetClient CS and CS Professional Suite desktop products effective 10/01/2020. In addition Thomson Reuters has already instituted support for multi-factor authentication, an IRS requirement that all tax software providers must be in compliance with by 2021. To learn more about the importance of MFA, please visit our website.

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