17329: 2021.08.06 - Drake20 Updates

Federal Update 34

• Line 3, "Number of shares held at the end of the taxable year," on Part I of Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, has been modified to display share amounts of up to 12 digits.

1041 Update 37

• Text entered in the "Additional Information" field on federal screen GRS is now displayed, as intended, at the top of the Statement of Income, Deductions and Credits Attributable to Grantor ("Grantor" in View/Print mode). Prior to this update, the default text of "Under Regulation 1.671-4(b)(2)(ii)" was displayed at the top of the statement even when an override was present.
• A new Return Note assists preparers in data entry of basis reduction for solar energy property from line 12c of screen 3468. This entry is for solar energy property (construction began in 2020) that qualifies for the investment credit.

1040 Update 54

• Form 8995-A, Schedule C, Loss Netting and Carryforward, will now include all entries from screen K199. Prior to this update, in some cases when several K199 screens were associated with a single Schedule K-1, data from some K199 screens was omitted. Returns containing more than 35 entries for Form 8995-A, Schedule C, should be reviewed for accuracy.
• An update prevents EF Message 5380 from being generated on certain returns with Social Security income.
• Certain "Other deductions" - such as negative 743(b) adjustments - now flow correctly to Forms 8995 and 8995-A, Qualified Business Income Deduction. Prior to this update, negative 743(b) adjustments were sometimes duplicated if multiple K199 screens were associated with a single K1 screen. Prior to this update, certain "Other deductions" that would have had to be entered as overrides now flow to the form automatically.
• A new Return Note assists preparers in data entry of basis reduction for solar energy property from line 12c of screen 3468. This entry is for solar energy property (construction began in 2020) that qualifies for the investment credit.

Illinois Update 26

• S Corporation Package:
  • The intended amount is now generated for Step 2, line 6, "All other items of income or loss that were not included in the computation of income or loss on Page 1 of U.S. Form 1120-S," of Form IL-1120-ST, Small Business Corporation Replacement Tax Return, preventing reject "IL1120ST-3500-2."
  • Data entered in the "Identify" field on line 6 of IL screen 1 is now generated as intended on Step 2, line 6, "All other items of income or loss that were not included in the computation of income or loss on Page 1 of U.S. Form 1120-S," of Form IL-1120-ST, Small Business Corporation Replacement Tax Return.

1065 Update 36

• An EF Message prevents parse errors associated with missing or invalid addresses entered on screen 8308. (SaleOrExchangeDt)
• A new Return Note assists preparers in data entry of basis reduction for solar energy property from line 12c of screen 3468. This entry is for solar energy property (construction began in 2020) that qualifies for the investment credit.

North Dakota Update 16

• S Corporation and Partnership Packages:
  • Override amounts entered on line 9, "Gross receipts/sales, less returns & allowances," of ND screen FACT will now be displayed as intended on line 9, page 2, of Form 60, S Corporation Income Tax Return.

New York Update 34 

• Partnership Package:
  • The "Individual" check box is now marked as intended for line E, "What is the tax filing status of the partner," of Form IT-204-IP, New York Partner's Schedule K-1, when "DISREGARDED" is selected for line I1, "PARTNER type (not the partnership)," on a federal screen K1.
  • The tax identification number entered on line F, "Disregarded entity or grantor trust: Tax ID of the entity or individual reporting the income," of NY screen IP1 is now generated as intended on line F of Form IT-204-IP, New York Partner's Schedule K-1.
• Individual Package:
  • Form IT-216, Claim for Child and Dependent Care Credit, is now generated as intended when a spouse has been entered as a qualifying dependent on federal screen 2 and the check box "Disabled" is marked in the "Additional Information" section.
  • EF Message 0727 is now generated when the spouse is listed as a qualifying dependent on Form IT-216, Claim for Child and Dependent Care Credit, preventing reject "R0915." Returns meeting the aforementioned criteria must be paper-filed.

General Update 49

• The "ST Income Tax e-File Accepted Paragraph" will now be produced, as expected, in the client results letter for Individual Mississippi returns. Prior to this update, the acceptance paragraph was not included in the letter.
• The client return letter for amended Individual (1040) returns now includes the "Federal Amended Direct Debit Paragraph." Prior to this update, the paragraph was not produced if there was a refund on the original Form 1040, U.S. Individual Income Tax Return, and the 1040-X, Amended U.S. Individual Income Tax Return, had a balance due that is being direct-debited.

1120 Update 38

• A new Return Note assists preparers in data entry of basis reduction for solar energy property from line 12c of screen 3468. This entry is for solar energy property (construction began in 2020) that qualifies for the investment credit.

1120S Update 35

• A new Return Note assists preparers in data entry of basis reduction for solar energy property from line 12c of screen 3468. This entry is for solar energy property (construction began in 2020) that qualifies for the investment credit.

990 Update 35

• A new Return Note assists preparers in data entry of basis reduction for solar energy property from line 12c of screen 3468. This entry is for solar energy property (construction began in 2020) that qualifies for the investment credit.