2021.04.14 - Drake20 Updates

Federal Update 22

• The intended amount will now be calculated for line 7, "Nonbusiness income other than capital gains," on page 3 of federal Form 1045, Application for Tentative Refund, when there are excluded unemployment benefits. Prior to this update, the excluded unemployment benefits were flowing to line 7, potentially understating any NOL created in 2020.

706 Update 4

• General program update.

1041 Updates 27

• EF Message 2573 no longer prevents e-file when a return has federal withholdings on more than 25 source documents (such as 1099s and W-2Gs).
• An update prevents a parse error when backup withholdings are reported on federal screens K1P, K1F, or K1F. ("The XML data has failed schema validation. cvc-enumeration-valid. Value '1065 SCHEDULE K-1' is not facet-valid with respect to enumeration '[FORM 1099]'. It must be a value from the enumeration. Rule Number: X0000-005.")
• A new field has been added to federal screens K1P and K1S for "Acquisition Interest." Amounts entered here flow to Schedule E, page 2, line 28, as a separately stated item.

1040 Updates 39

• An issue has been corrected where the "Yes" check box erroneously was being marked on line 20 of Schedule D when Form 4952 was present in the return. This change does not affect any calculations.
• Penalty and interest amounts will no longer appear on federal Forms 1040 and 1040-SR when Form 1040-X is present in the return.
• The adjustment fields for KEOGH contributions on federal screen 4 (Schedule 1 – Part II – Adjustments to Income) will now function as expected.
• The explanation section on federal Form 1040-X has been adjusted to allow for printing of hyphens and other special characters.
• EF Message 2573 no longer prevents e-file when a return has federal withholdings on more than 25 source documents (such as 1099s and W-2Gs.)
• An update prevents a parse error when backup withholdings are reported on federal screens K1P, K1F, or K1F. ("The XML data has failed schema validation. cvc-enumeration-valid. Value '1065 SCHEDULE K-1' is not facet-valid with respect to enumeration '[FORM 1099]'. It must be a value from the enumeration. Rule Number: X0000-005.")
• New codes have been added to federal screen K1S for 743b adjustments. Code "HH," added to box 10 on screen K1S, allows entry of positive 743b adjustments, and code "SF," added to box 12, allows negative 743b adjustments. An amount entered with one of these codes flows through the Basis Worksheet and appears on Schedule E, page 2, line 28, as a separately stated item.
• A new field has been added to screens K1P and K1S for "Acquisition Interest." An amount entered there flows to Schedule E, page 2, line 28, as a separately stated item.
• Line 32, "Override annualization amounts," has been added to federal screen 2210 for both the taxpayer and spouse.

Idaho Update 13

• Fiduciary Package:
  • Idaho has extended the due dates for Form 66, Fiduciary Income Tax Return, to May 17, 2021.
• Corporation, S Corporation, Partnership, and Fiduciary Packages:
  • The filing and payment due date has been updated to June 15, 2021, due to the federally declared disaster extension. Returns with a  mailing address located in Texas and Louisiana will automatically be extended.
  • Form 41ES, Estimated Tax Payment voucher, has been updated to display the correct scanline year of 2021.

New York Update 25

• Individual Package:
  • When the cumulative amount of gambling winnings sourced to NYS is greater than $5,000 for full-year nonresident filers, line 16 of Form IT-203 will now include the total winnings in the "NYS" column.
  • Page 2 of the Itemized Deductions Worksheet - Addition Adjustment (ITMADD) will no longer duplicate entries when more than three schedules of amortization of bond premium attributable to NY income tax are present. Line C2 from page 2 of worksheet ITMADD will now generate the correct interest percentage entered in the "Other state municipal interest" field on federal screen INT. When line C2 is "0" (zero), line D will now always default to "0."
  • An amount entered in box 8, "OID on Treasury Obligations," on federal screen OID will now flow to line 28 of Form IT-201 and line 27 of Form IT-203.
  • An amount in the "Other state municipal interest" field of screen OID will now flow to line 20 of Forms IT-201 and IT-203.
  • When a carryforward amount is present for Form IT-255, Solar Energy System Equipment Credit, and NY screen 255 is not activated in data entry, line A will now be answered "Yes," by default. Prior to this update, the IT-255 would generate a carryforward credit without line A being marked "Yes," as required.
  • In compliance with notice N-21-1, EF Message 0722 will no longer be generated when the date entered in the "Requested payment date" override field on screen PMT falls on or before May 17, 2021, for Forms IT-201, Resident Income Tax Return and IT-203, Nonresident and Part-year Resident Income Tax Return. The program will continue to use the date the return is filed as the payment date.
• Corporation Package:
  • By no longer allowing code "A-214" and "EA-214" to be entered on NY screen 255, the program prevents NY reject 07118 from CT225 code: "An invalid modification number was entered on the form. Forms CT-225/CT-225A- Addition and subtraction modification numbers (MDF_NMBR) are invalid on Schedule A part 1 Lines1a-1p, Schedule A part 2 Lines 3a-3P, Schedule B part 1 lines 6a-6P and Schedule B Part 2 lines 8a-8p." These codes are applicable to Form CT-3-S only.
  • The maximum number of characters allowed on line 1, "List all significant business activities in NYC and everywhere," on NYC screen 107, was shortened to 50 characters, in order to prevent a parse error for the element 'http://www.irs.gov/efile:AllSignificantBusinessActivity.'
• Individual and Fiduciary Packages:
  • In compliance with finance memorandum 21-2, Drake Tax has updated UBT forms NYC-EXT, NYC-202S, NYC-202 and NYC-202EIN, to allow special condition code "21" to be generated when entered on NYC screen 2022 in the Individual package and NYC  screen C1 in the Fiduciary package. The request for penalty abatement applies only to UBT filers with tax payments due on April 15, 2021. Form NYC-EXT, Application for Automatic Extension of Time to File Business Income Tax Returns has been updated to conform with the latest version of the form. All printed data now  flows to the form as expected.
• Individual, Partnership, and Fiduciary Packages:
  • The NYC_UBTX, UBT Tax Worksheet of Changes in Tax Base, will now be generated for amended UBT returns when new screens CIX1 and CIX are activated. 
  • EF Message 0723 will now be generated when the UBT return is marked as "Amended," requiring the UBTX worksheet to be attached to the return as a PDF document.

General Update 37

• Worksheet LA 540 CEW, Louisiana COVID-19 Educational Expense Deduction, has been added to Setup > Pricing as item number 86 in the individual package.
• Pages 1 and 3 of Form DR 0104TN, Colorado Earned Income Tax Credit for ITIN Filers, have been added to the CO pricing file (Setup > Pricing), listed as item numbers 0024 and 0025.
• A statement for nonconformity addbacks has been added to the IN pricing file (Setup > Pricing), listed as item number 111.

1120 Update 25

• Form 1120, line 19, "Charitable contributions," will now be calculated correctly, using the 10% limitation for contributions carried over from prior years. Returns containing prior-year contribution carryovers that have already been filed should be reviewed for accuracy. 
• "0" (zero) will now be printed on any blank line of Form 8879-C, IRS e-File Signature Authorization for Form 1120.

General State Programming Update 26

• Fiduciary Package:
  • EF Message 9304 is no longer generated when an "A" is selected from the "PIN entered by" drop list on the federal PIN screen.
• Individual Package:
  • The filing instructions for Form PA-1000, Property Tax or Rent Rebate Claim, have been updated for printing with borders (when "Use borders on filing instructions" is selected at Setup > Client Communications > Setup > Page Page Layout).

990 Update 22

• A Form 990T EF Message no longer stops e-file of other 990 forms, including Form 8868, Application for Extension.
• Amended returns in the Tax-Exempt package will now be displayed, as expected, in the EF Return Selector.

Tennessee Update 10

• Corporation, S Corporation, and Partnership Packages:
  • "Direct Debit" will now be indicated as intended in the "Payment Method" column of the calculation results window after the return has been accepted.
  • The client result letter and instructions will now reflect the expected direct debit transaction.

Wisconsin Update 17

• Individual Package:
  • Printing alignment has been adjusted for the Wisconsin Working Families Tax Credit Worksheet ("WI WK_WF").
  • The following lines will now produce overflow statements as intended when multiple entries are present:
  • Line 28, "Tax-option (S) corporation adjustments," of Schedule AD, Form 1 - Additions to Income
  • Line 42, "Tax-option (S) corporation adjustments," of Schedule SB, Form 1 - Subtractions from Income
  • Federal EF Message 6050 will no longer prevent Wisconsin returns from being e-filed.
  • Schedule WD, Capital Gains and Losses, will now be generated as intended when amounts are present only in parts IV and V.
  • A parse error on the element "EarnedIncomeCredit" has been resolved when the Wisconsin EIC differs from the federal EIC due to the unemployment compensation exclusion.
• Corporation Package:
  • An EF Message has been added to the program and will now be generated when no amount is present for "Total Wisconsin sales," preventing reject "F4-040."
• Partnership Package:
  • Line 21 of WI Form 3, Wisconsin Partnership Return, will now default to "No" when no data has been entered on WI screen 1.