17362: 2021.09.10 - Drake20 Updates

Federal Program Update 35

• General program update.

California Update 27

• Individual Package:
  • EF Messages have been updated to prevent reject "DRKPARSE" on element "FirstName" when the taxpayer's first name contains special characters and CA Form 593, Real Estate Withholding Statement, is included in the return.
  • EF Messages have been updated to prevent reject "DRKPARSE" on element "LastName" when, on a Married Filing Jointly return, an invalid character is present in the spouse's last name and CA Form 593, Real Estate Withholding Statement, is present in the return.
• Corporation Package:
  • EF Message 2062 is now generated when a valid principal business "Activity code" is not entered on CA screen SCHQ, preventing reject "F100-100."
• Corporation and Tax-Exempt Packages:
  • EF Messages have been updated to prevent reject "DRKPARSE" on element "USAddress" when foreign address information is present for a contributor but no country, province, or state information is included.
• Partnership Package:
  • If "LLC - Partnership" is selected from the "PARTNER type" drop list on a federal screen K1, the check box "LLC" is now marked for the corresponding partner on line B, "What type of entity is this partner?" of CA Schedule K-1 (Forms 565 and 568).
  • EF Messages have been updated to prevent reject "DRKPARSE" on element "SOSNType" when the "SOS Number" entered on CA screen K1 is not 12 digits in length.
• Individual, Corporation, S-Corporation, Partnership, and Fiduciary Packages:
  • An update changes the following processes when line 11, "The transfer of this property is an installment sale where they buyer must withhold on the principal portion of each installment," on Part IV, page 1, of CA Form 593, Real Estate Withholding Statement, is not marked:
    • EF Message 0224 is no longer generated
    • Part V, page 2, of CA Form 593 is no longer completed
  • EF Message 0232 is now generated when an invalid ID number is entered on the "Buyer Info" tab of CA screen 593, preventing reject "DRKPARSE" on element "FEIN."
  • EF Message 0233 is now generated when certain non-alphanumeric characters are entered in the "Domestic" address fields in the "CA Property" section on the "Seller Info" tab of CA screen 593, preventing reject "DRKPARSE" on element "AddressLine1Txt."

1041 Update 38

• General program update.

1040 Update 56

• The 100% charitable deduction carryover is now displayed on the correct line of the Carryover Worksheet ("WK_CARRY").
• Line 20, "Distributions from your Roth IRAs," has been added to federalscreen 5329, allowing preparers to override the amount on line 20 of Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and OtherTax-Favored Accounts.

Kentucky Update 27

• Individual Package:
  • Returns with no KY withholding and the reciprocal return box marked on KY Screen One, can now be transmitted.

Massachusetts Update 27

• S Corporation and Partnership Packages:
  • Negative values can no longer be entered on lines 25-29 of MA screen NRCE, preventing reject "FNRCR-060."
• Partnership Package:
  • EF Message 0123 is now generated when a negative amount is present on line 84, "Deductions included in Schedule K, lines 1 through 13d and 16p, not charged against book income this year," page 10, of MA Form 3, Massachusetts Partnership Return of Income, preventing reject "F3-495."

Maryland Update 37

• S Corporation and Partnership Packages:
  • Overpayment amounts entered on federal screen ES are now factored accordingly into line 18, "Amount of overpayment from original return to be applied to estimated tax for 2021," of MD Form 511, Pass-Through Entity Election Income Tax Return.
  • EF Message 0266 is now generated when the Wineries and Vineyards Tax Credit does not come from a pass-through entity and the amount on line 1, "Wineries and Vineyards Tax Credit," Part T, of MD Form 500CR, Business Income Tax Credits, does not match the amount on line 20, "Total Wineries and Vineyards Tax Credit," Part AAA, of MD Form 500CR, preventing reject "500CR-54566-010."
• Individual Package: 
  • EF Message 0269 is now generated when amounts are present on the following lines of the respective form, preventing rejects "502X-87120-010" and "502X-87140-010":
    • MD Form 502X, Amended Tax Return, lines 23 and 24
    • MD Form 505X, Nonresident Amended tax Return, lines 22 and 23, Negative amounts are now allowed on line 5, "Total Maryland adjusted gross income," page 2, of MD Form 505X, Nonresident Amended Tax Return, preventing reject "505X-89720-010."
  • Negative values entered in the "Unemployment compensation repaid in current year" field on federal screen 99G are no longer reported on Maryland's copy of Form 1099-G, Certain Government Payments, preventing reject "DRKPARSE" on element "RepaymentAmount." Negative amounts entered in the aforementioned field are now ignored by the program.
  • Negative amounts can no longer be entered in the "Adjustments to Income" field on MD screen X, preventing reject "DRKPARSE" on element "Original."
  • Negative amounts are no longer allowed on line 24, "Prior overpayment," page 3, of MD Form 502X, Amended Tax Return. Any negative amount entered in the "Prior overpayment" field on MD screen X is now ignored by the program.
• Individual, Corporation, S Corporation, Partnership, and Fiduciary Packages:
  • EF Message 0267 is now generated when the pass-through entity's EIN on MD Schedule K-1 (510) is the same as the EIN of the entity filing MD
  • Forms 510, Pass-Through Entity Income Tax Return, or 511, Pass-Through Entity Election Income Tax Return, preventing reject "500CR-53010-010."

1065 Update 37

• When more than 12 K1P screens reporting rental real-estate information for pass-through entities are completed, a statement listing partnership names and identifying numbers is now generated for line 20b of Form 8825, Rental Real Estate Income and Expenses.
• Line 15 on Form 8996, Qualified Opportunity Fund, will no longer be marked "No" for certain rounding calculations. Prior to this update, if the result of the rounding calculation was from 89.5 to 89.9, line 15 was being marked "No," when rounding to "90" would have allowed "Yes" to have been marked.

New Mexico Update 12

• Individual and Corporation Packages:
  • The interest rate has been updated on the Calculation of Estimated Underpayment Penalty forms (Form RPD-41272 in the 1040 package and Form RPD-41287 in the 1120 package) for the 4th quarter of 2021.

General Update 50

• IA Form 103, Iowa Pass Through Election To Pay Voucher, is now a four page form. Additional pages have been added to Setup > Pricing in the IA 1065, 1120S, and 1041 packages.
• Forms IA 2848, Power of Attorney, and IA 2848-A, Multiple Iowa Department of Revenue Power of Attorney, now show as separate entries in Setup > Pricing for pages 1 and 2 instead of a single entry for both pages. This update affects the IA 1040, 1120, 1120S, 1065, and 1041 packages.

1120 Update 39

• The intended amount now flows to line 3, "Inventories," of Form 1120, page 6, Schedule L. Prior to this update, when "Accrual" was selected on screen K as the accounting method and there was an amount entered in Part III of screen F, the amount on line 3, column (d) of Schedule L was doubled.
• Data entered in the "Amount of Carryback" field on the "Current-Year Unused Credits Carryback" section of screen 3800 now flows as expected to line 1c, "Unused general business credit," of Form 1139 (for returns including Form 1139, Corporation Application for Tentative Refund), and is factored accordingly into the total for line 20, "General business credit," column (f), "After carryback." Prior to this update, line 20, column (f), was calculated incorrectly. Previously filed Forms 1139 including line 20(f) amounts should be reviewed for accuracy.
• A program update prevents "referenceDocumentId" parse errors associated with Schedule M-3. Line 15 on Form 8996, Qualified Opportunity Fund, will no longer be marked "No" for certain rounding calculations. Prior to this update, if the result of the rounding calculation was from 89.5 to 89.9, line 15 was being marked "No," when rounding to "90" would have allowed "Yes" to have been marked.

1120S Update 36

• Line 15 on Form 8996, Qualified Opportunity Fund, will no longer be marked "No" for certain rounding calculations. Prior to this update, if the result of the rounding calculation was from 89.5 to 89.9, line 15 was being marked "No," when rounding to "90" would have allowed "Yes" to have been marked.

990 Update 37

• The tax-exempt organization can now e-file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code. To e-file the return, recalculate and review it before selecting it for e-file. 
• Separate 4720 returns created for managers, self-dealers, disqualified persons, donors, donor advisors, or related persons who owe taxes under Chapter 41 or 42 must be paper-filed.