17237: 2021.05.12 - Drake20 Updates

Federal Update 29

• General program update.

California Update 23

• Individual Package:
  • Updates ensure that filing instructions and the client results letter display correct information for Single Member LLCs (Form 568) after the return has been e-filed and accepted.
  • Line 3, "2020 annual Limited Liability Company tax," of Form 568, Limited Liability Company, will no longer be calculated in certain situations when both the "Final" return check box and the "LLS is solely owned by a deployed member of the US Armed forces" check box on CA screen DEMO are selected.
  • Line 8d, "Mortgage insurance premiums," has been updated to beincluded on the CA Pro Forma Schedule A worksheet (CAWK_A), when appropriate Lines 19 and 21 on page 3 of Schedule CA, California Adjustments, have been updated to include:
    • "Union dues," entered on federal screen A in the "State Use Only" section
    • "Investment expenses not entered elsewhere," entered on federal screen A in the "State Use Only" section
  • Certain EF Messages have been updated and are now generated when, for Estimated Tax payments, the "Requested payment date" entered on federal screen PMT is after "01/18/2022," preventing reject "F540/NR/2EZ-870."
  • Certain EF Messages have been updated and are now generated when, for a code of "SDI," an amount less than one is entered on line 14, "Other," of federal screen W2, preventing reject "F540-710." 
  • Certain EF Messages have been updated and are now generated when a fraction of a cent is entered on line 1, "Wages, tips," of federal screen W2, preventing reject "FW2-010." 
  • An update prevents reject "F3849-050" on certain returns using the Alternative Marriage calculation.
  • Certain EF Messages have been updated and are now generated when an amount is entered for "Military Pay Adjustment" on the "Line 22 detail" tab of CA screen CA for residents, preventing reject "SCHCA-057."
  • Certain EF Messages have been updated and are now generated when an override is entered on line 15, "Casualty and theft loss(es) from a federally declared disaster" of the CA Proforma Federal Schedule A screen (accessed via the "Federal Itemized Deductions Schedule A" link on CA screen ITEM) but no federal screen 4684 has been used, preventing reject "SCHCA/NR-255."
  • An update prevents reject "F540/NR/2EZ-351" when spouse data is present in the "Active Military Service" section of CA screen 540 and the return's filing status is Married Filing Separately. 
  • Certain EF Messages have been updated and are now generated when a "Requested Payment Date" is entered on federal screen PMT but no "Daytime phone number" is entered on either federal screen 1 or PMT, preventing reject "DRKPARSE" for element "PaymentInformation."
  • Line 3, "Enter the total of all nontaxable social security benefits," of the Marketplace Coverage Affordability Worksheet for Form 3853 ("CAWK3853") no longer includes certain retirement income entered on federal screen 1099.
• Individual and Fiduciary Packages:
  • Estimated tax payments are no longer included on line 3, "Withholding taxes," in Part II, page 2, of Form 5805, Underpayment of Estimated Taxes. 
• Corporation Package:
  • Amounts are now rounded to the intended decimal place on Schedule R, Apportionment and Allocation of Income, preventing reject "SCHR- 44."
• S Corporation Package:
  • Updates prevent reject F100S-250 on S corporation returns with Form 3866, Main Street Small Business Tax Credit, included but no other credits on the return. 
• Partnership Package:
  • Updated EF Messages prevent reject F568-230 on certain LLC returns that have an amount in the override field on line 17a, "Depreciation and Amortization," of CA screen B, but no federal screen 4562 is included.
• Individual, Corporation, S Corporation, Partnership, and Fiduciary Packages:
  • Updated EF Messages prevent a parse error for element "Individual" having incomplete content when an ID type is selected on CA screen 593 ("Buyer Info" tab) but no ID number is entered.
  • Page 2, Part II, of Form 3840, Like-Kind Exchanges, has been updated to ensure the property address information is printed with the associated ownership percentage.
  • Updates prevent reject SCHD1-080 on certain returns with sales of 1244-type property reported on CA Schedule D-1. 
  • Updates prevent a parse error for element "CashFMVNetLiabRedByExpnss" being invalid when a negative amount of "Cash received" is entered on CA screen 3840. 
  • Check boxes for the perjury statement section on page 3 of Form 593, Real Estate Withholding Statement, have been added to CA screen 593.
• Tax-Exempt Package:
  • Updated EF Messages allow Form 199, California Exempt Organization Annual Information Return, to be e-filed after the federal return has been transmitted and accepted. 
  • The field "Date filed with IRS" has been added to line O, "Is an IRS Form 1023/1024 pending," of CA screen 1. An entry in this field flows to line O of Form 199, California Exempt Organization Annual Information Return.

1041 Update 31

• An update prevents reject "F7004-003-03" for TX, LA, and OK filers affected by the winter storms in February. The IRS did not adjust business rules to allow extensions beyond the original due date. 

1040 Update 46

• The correct amount of real estate tax now flows from Wks_E to Schedule E when the "Tax Court method" of allocating interest and taxes is selected on screen E.
• The amount on line 1, column (f), Part I of Form 965-A, Individual Report of Net 965 Tax Liability, will now be printed. Prior to this update, the amount on line 1, column (f), Part I was not printed.
• The Deferral Worksheet for Schedule H or Schedule SE filers (WK_DEFER) has been updated to the final release in the 1040 instructions.
• Selecting the new "8962" check box on screen X marks the "8962" box on Form 1040-X, when appropriate.

Kentucky Update 22

• S Corporation and Partnership Packages:
  • To prevent a parse error on element 'KYCorpLLETAcctNumber', EF Message 0120 is now generated when a Kentucky Corporation/LLET Account Number is missing or invalid on KY screen PTE.
• Individual Package:
  • To prevent a parse error on element 'KYCorpLLETAcctNumber', EF Message 2029 will now be generated when a Kentucky Corporate/LLET Account number is missing or invalid on Form 725, Kentucky Single Member LLC Individually Owned Income And LLET Return. 
  • To prevent a parse error on element 'KYNAICSCodeNumber', EF Message 2030 will now be generated when a Kentucky NAICS number is invalid on Form 725, Kentucky Single Member LLC Individually Owned Income and LLET Return.
• Corporation Package:
  • To prevent a parse error on element 'KYCorpLLETAcctNumber', EF Message 0120 will be generated when a Kentucky Corporation/LLET Account Number is missing or invalid on KY screen 1.
• Fiduciary Package:
  • Line 1, "Adjusted total income," on Schedule B, Income Distribution Deduction, of Form 741, Kentucky Fiduciary Income Tax Return, is now calculated as expected when a value is present for line 2, "Additions," on page 1 of Form 741.
• Partnership Package:
  • A parse error on element "Name" has been corrected.

1065 Update 31

• Special allocations reported on line 4b, "Guaranteed payments for capital," of federal screen K will now be allocated as expected.
• An EF Message prevents parse errors associated with Form 8996, Qualified Opportunity Fund. (TractNum)

Nebraska Update 15

• Individual, Corporation, S Corporation, and Partnership Packages:
  • A parse error on element "ShareIncomeorOwnershipPct" has been corrected.
• S Corporation Package:
  • Amounts on line 1 and 2 of Schedule K-1N, Shareholder's Share of Income, Deductions, Modifications, and Credits has been corrected.

1120 Update 32

• TX, LA, and OK returns can now be e-filed with payments. 
• An EF Message prevents parse errors associated with Form 8996, Qualified Opportunity Fund. (TractNum)
• An update prevents reject "F7004-003-03" for TX, LA, and OK filers affected by the winter storms in February. The IRS did not adjust business rules to allow extensions beyond the original due date.

1120S Update 30

• An update prevents reject "FYPMT-072-01" for TX, LA, and OK filers affected by the winter storms in February. The IRS did not adjust business rules to allow scheduled payments beyond the original due date. 
• Printing alignment has been adjusted for Schedule L statements so that the title and statement reference no longer overlap. 
• An EF Message prevents parse errors associated with Form 8996, Qualified Opportunity Fund. (TractNum)
• An update prevents reject "F7004-003-03" for TX, LA, and OK filers affected by the winter storms in February. The IRS did not adjust business rules to allow extensions beyond the original due date. 

990 Update 29

• An update prevents the following parse error: "The element 'IRS5471ScheduleE' in namespace 'http://www.irs.gov/efile' has invalid child element 'Section986a1DElectionInd' in namespace 'http://www.irs.gov/efile'. List of possible elements expected: 'PersonNm, BusinessName, SSN, EIN, MissingEINReasonCd, ForeignCorporationName' in namespace 'http://www.irs.gov/efile'."
• An update prevents reject "FYPMT-072-01" for TX, LA, and OK filers affected by the winter storms in February. The IRS did not adjust business rules to allow scheduled payments beyond the original due date.
• An update prevents reject "F7004-003-03" for TX, LA, and OK filers affected by the winter storms in February. The IRS did not adjust business rules to allow extensions beyond the original due date.