17135: 2021.03.04 - Drake20 Updates

Federal Update 14

• e-Sign is now available for Form 114A, Record of Authorization to Electronically File FBARs.

706 Update 2

• General program update.

1041 Update 18

• Amounts for line 18, "Required Installments," on Part IV, "Regular Method," of federal Form 2210 will now be generated on column (a) instead of column (b). Line 18 of column (b) will now remain blank as per IRS instructions.
• The dollar amounts for line 40 of Form 8801, Credit for Prior Year Minimum Tax, have been updated for tax year 2020. Prior to this update, the amounts for tax year 2019 were generated for line 40. Already-filed 2020 returns that contain Form 8801 should be reviewed for accuracy.
• The QBI worksheet will now show one number for rental and ordinary income combined. Prior to this update, the rental portion was showing on the ordinary income line and not the rental income line.
• A program update prevents a parse error on Form 1116. (IRS1116)
• EF Message 2565 will no longer be generated when an EIN is entered on federal screen 8949.
• An EF Message will now be generated when the amount on line 2a, "Taxable amount," of federal Form 1099-R is greater than the amount on line 1, "Gross distribution."
• The QBI worksheet will no longer duplicate entries coming from screen PATR that are already included in the QBI calculation of a farm filing a 1041 return.

1040 Update 26

• An update prevents returns from being rejected for Business Rule IND-020-01.
• Amounts for line 18, "Required installments," on Part IV, "Regular Method," of federal Form 2210 will now be generated in column (a) instead of column (b). Line 18 of column (b) will now remain blank as per IRS instructions.
• EF Message 5402 prevents e-file when negative amounts are entered in either field for line 1 on federal screen 3. Negative amounts in these fields will now result in reject "FW2-001-02": "The sum of all Form W-2s, 'WagesAmt' must not be greater than the sum of ['WagesSalariesAndTipsAmt' in the return and (sum of all Schedule C (Form 1040), 'TotalGrossReceiptsAmt' when 'StatutoryEmployeeFromW2Ind' is checked)] unless Form 8958 or Form 8839 is present in the return. When evaluating this, a tolerance of $5.00 is allowed."
• The Earned Income Credit Worksheet will now be produced only when either the taxpayer qualifies for Earned Income Credit or the "EIC not calculating? Mark this box..." check box on the PRNT screen is marked. - Part III, Maximum Deferral of Self-Employment Tax Payments, of Schedule SE will now be completed only when an entry has been made for line 18, 20, or 22 on federal screen SE. Prior to this update, the deferral section was completed in the rare circumstance when there was a non-farm loss and entries existed for the non-farm optional method.
• Section 179 depreciation expenses for a state-only Form 2106, Employee Business Expenses, will now be included on line 4 of the state's 2106 forms.
• The tax year will now be displayed in the upper-right corner of Form 8879, IRS e-file Signature Authorization, per customer request.
• The dollar amounts for line 40 of Form 8801, Credit for Prior Year Minimum Tax, have been updated for tax year 2020. Prior to this update, the amounts for tax year 2019 were generated for line 40. Already-filed 2020 returns that contain Form 8801 should be reviewed for accuracy.
• The "Foreign Accounts" questions no longer require an answer for Form 1040-NR, Nonresident Alien Income Tax Returns. Prior to this update, in certain situations, an EF Message was generated with 1040-NR returns that required the Foreign Accounts questions to be answered.
• Taxable interest from Schedule B is now included when the taxable portion of Social Security Benefits is recomputed for Form 8815, Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989.
• Business expense amounts for performing artists from federal Form 2106 will now flow to line 11, "Certain business expenses of reservists, performing artists, and fee-basis government officials," on Schedule 1 when the main return is Form 1040-NR. Prior to this update, these amounts were generated on line 22 on Schedule 1.
• Form 8615, Tax for Certain Children Who Have Unearned Income ("Kiddie Tax"), will now ignore negative entries for other children's net unearned income on line 7 of Form 8615. Prior to this update, a negative number, if entered, was generated on Form 8615. 
• Form 1040-NR, U.S. Nonresident Alien Income Tax Return, can now be e-filed.
• A program update prevents a parse error on Form 1116. (IRS1116)
• Dependents who have ATINs (Adoption Taxpayer Identification Numbers) will now be included in the calculation of the RRC (Recovery Rebate Credit). 
• An EF Message will now be generated when the amount on line 2a, "Taxable amount," of federal Form 1099-R is greater than the amount on line 1, "Gross distribution." 
• The capital gain worksheets for Schedule J will now compute the intended amount to be taxed at 15%. Prior to this update, the tax computed on Schedule J for some high-income farm returns with capital gains could have been incorrect.

Kansas Update 7

• Individual Package:
  • The client result letter has been updated for returns where the taxpayer elects to participate in the refund advancement program when Form KS 40H, Homestead Credit, is present in the return.
• Individual, Corporation, and Fiduciary Packages:
  • EF Message 0073 is no longer generated for credit computation from prior years for Form KS 53, Research and Development Credit.
• S Corporation and Partnership Packages:
  • An update allows any PDF explanation for reorganization to be attached to a K-120S, Partnership Sub-S Income Tax, return.
  • Calculations for apportions for any guaranteed payments for nonresident partners has been updated for column 5, "Income from Kansas sources," on Part II, Partner's or Shareholder's Distribution of Income, of Form K-120S, Partnership or S Corporation Income Tax Return.

Missouri Update 20

• Individual Package:
  • Line 18, "Inactive Duty Military Deduction," of MO screen 1 has been changed from a direct entry to an override field. This deduction will be calculated automatically using 20 percent of the wages entered for box 1 on Form W-2 so long as a code of "N - National guard wages" is selected from the "Special tax treatment" drop list on federal screen W2.
  • An update prevents reject "MO1040-0013" when Form MO-NRI, Missouri Income Percentage, is included in the return and the taxpayer's filing status is Single.
  • An update prevents reject "MO1040-0007" when Form MO-NRI, Missouri Income Percentage, is present in the return.

1065 Update 17

• Special allocations reported on federal screen M3 will now allocate amounts to the appropriate partner as expected. Prior to this update, the special allocation function was not functioning for data entered on this screen.
• The line 20 code "AG" for Schedule K will now be produced for partnerships with gross receipts greater than $5 million. Partnerships with gross receipts greater than $5 million are required to report to their partners their distributive share of gross receipts for the taxable year reduced by returns and allowances made during such year. Gross receipts information will be used by the partner to determine if there is a Form 8990, Limitation on Business Interest Expense Under Section 163(j), filing requirement in the partner's return.
• Special allocations reported on line 4b, "Guaranteed payments for capital," of federal screen K will now be allocated as expected.

North Carolina Update 9

• S Corporation Package:
  • Negative amounts will now be allowed on line 2, "Deductions from Federal Adjusted Gross Income," of Schedule I, Adjustments to Income (Loss), on page 3 of Form CD-401S, S Corporation Tax Return, resolving reject "NCCD401S-4010."
  • A parse error on element "OtherAdditions" has been resolved for Form CD-401S, S Corporation Tax Return.
• Individual Package:
  • A parse error on element "NoUBADisbursementCdSubmit" has been resolved for Form D-400, Individual Income Tax Return.
  • EF Message 0053 will no longer be generated so long as any type of valid phone number is entered on federal screen 1.
  • EF Message 0112 has been added to the program, preventing reject "NCD400-2800" for Form D-400, Schedule PN, Part-Year Resident and Nonresident Schedule.

Oregon Update 8

• Individual Package:
  • "Federal Pension Income," (subtraction code 307 on Schedule OR-ASC, Oregon Adjustments for Form OR-40 Filers,) will now be limited to the amount of taxable pensions from Form 1040.
  • Return Note 108 will now be generated when a return is disqualified from Schedule OR-WFHDC, Oregon Working Family Household and Dependent Care Credit, because the taxpayer's AGI is too high.
  • EF Message 0111 has been added to Form OR-40-P, Individual Income Tax Return for Part-year Residents, and OR-40-N, Individual Income Tax Return for Nonresidents, to prevent reject OR-036: "Schedule OR-A total must match total entered on 40, 40N or 40P," when using the standard deduction but "Force Itemized" has been selected on OR screens A or PRNT.
• Fiduciary Package:
  • Portland/Multnomah County
    • Form E-2020 Combined Tax Return for Trusts & Estates, now includes a 2D barcode for easy scanning of this paper-filed return.
    • Form E-2020 is now a two-page form.
• Partnership and Fiduciary Packages:
  • Portland:
    • Forms P-2020, Combined Tax Return for Partnerships, and E-2020, Combined Tax Return for Trusts and Estates, have been approved for paper- file. The "Taxpayer copy only" banner has been removed and the 2D barcode will be printed so the city can scan the forms.
• All Packages:
  • An EF Message will be generated when data entry is incomplete on OR screen PDF, preventing parse error, "Exception=Error (146,4):The element 'BinaryAttachment' in namespace 'http://www.irs.gov/efile' has incomplete content. List of possible elements expected: 'AttachmentLocationTxt' in namespace 'http://www.irs.gov/efile.'" If one field of OR screen PDF is used, all three fields must be completed.
  • Portland:
    • The quarterly payment worksheet displaying the computation of estimated payments is now available.
    • The new Portland payment voucher, Form BZT-V, can now be paper filed. The "Taxpayer copy only" banner has been removed.

General Update 30

• Nebraska Property Tax Credit Addendums have been added to Setup > Pricing in all supported packages.
• Nebraska Form 1040N-EB, Purchase of a Nebraska Residence in a Designated Extremely Blighted Area Credit, has been added to Setup > Pricing in the individual package.
• Deferred crop insurance will now be updated as intended from Drake Tax 2019 to Drake Tax 2020 when, in Drake Tax 2019, there is an entry in the "Crop insurance proceeds" field on federal screen 99M.

1120 Update 17

• EF Message 0042, Analysis of Unappropriated Retained Earnings Out of Balance, will now be generated as expected.
• Statement 140 will now be produced as expected for Form 1120-H returns.
• Net operating losses and section 382 loss limitations entered on the LOSS screen, available from the "Miscellaneous" tab of the Data Entry Menu, will now be calculated and generated as expected.

Rhode Island Update 7

• Fiduciary Package:
  • Form RI-1041, Fiduciary Income Tax Return, has been approved for e-file by the Rhode Island DoR.
• Individual, Corporation, S Corporation, Partnership, Fiduciary, and Estate Packages:
  • The following forms have been approved for printing by the Rhode Island DoR:
    • RI 1040NR-MU, Credit for Income Taxes Paid to Multiple States
    • RI Schedule CR-PT, Other Rhode Island Credits for RI-1065 & RI-1120S
    • RI-1040C, Composite Income Tax Return
    • RI-1040C-ES, Composite Income Tax Estimated Payment
    • RI-4868C, Composite Income Tax Return Extension Payment

1120S Update 17

• General program update.