2020.09.09 - Drake19 Updates
Federal Update 46
- The due date displayed on the filing instructions for Form 8879, IRS e-file Signature Authorization, has been updated to reflect the extended due date when a return extension has been filed. Prior to this update, the filing instructions displayed the original due date instead of the extended due date.
1041 Program Update 43
North Carolina Update 13
- EF Messages 2061 and 4652 no longer prevent NC Form D-400, Individual Income Tax Return, from being e-filed when federal Form 1040-X, Amended U.S. Individual Income Tax Return, is attached to the return. - Due to NC decoupling from the federal CARES Act provisions listed below, adjustments will automatically be calculated on line 5 of NC Form D-400 Sch S, Supplemental Schedule, for applicable returns:
- Net Operating Losses (NOL): CARES Act repealed the taxable income limitation for NOLs created after tax year 2017. This includes the revisions allowing NOLs to be carried back five years.
- Limitations on Business Interest: The interest expense limitation has increased from 30% to 50%.
- Excess Loss Limitations IRC-461: Modifications allowing excess losses to be deducted for non-corporation filers.
- Amounts for NOL and Business Loss Limitation addbacks to be deducted in future years are located on NC screen CARR, Carryover.
- Worksheet NCSATT, NC Schedule S Other Additions/Subtractions, has been added to itemize multiple adjustments on NC Schedule S, lines 5 and 14.
- A check box to "Suppress CARES Act adjustments" has been added to the bottom of NC screen 1 to aid in the preparation of amended returns.
- NC has decoupled from the federal Tuition and Fees deduction. This amount will now be included on line 5 of NC Form D-400 Sch S, Supplemental Schedule, for applicable returns.
General Update 59
- Reports now use 1040SR and 1040NR return type names.
- Return type reports now filterable by 990 extensions.