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1. 1065 Sample Return 227 228 Step 13 1065 page 5 Balance Sheet A Enter the AbleBaker Bookstore beginning and ending balance sheet amounts as shown below Beginning of End of Tax Year Tax Year Cash line 1 9 981 9 181 Notes and accounts receivable line 2a 7 150 10 990 Tax exempt securities line 5 Maryland Municipal Bonds 1 000 1 000 Bldg other depreciable assets line 9a 3 356 Accumulated depreciation line 9b 320 Accounts payable line 15 8 742 8 329 Mortgages notes bonds under 1 yr line 16 3 000 2 600 Mortgages notes bonds over 1 yr line 19 7 739 For the Tax exempt securities line 5 create a Detail Statement by clicking the Detail button on the button bar and using Maryland Municipal Bonds as the description Notice that the detail statements on the balance sheet allow the beginning and ending amounts for the year to be entered B Scroll down below the balance sheet to locate Schedule M 2 Analysis of Partners Capital Accounts Enter 27 550 as the balance at the beginning of the year on line 1 of Schedule M 2 The M 2 beginning and ending balances for the year will automatically carry to the balance sheet line 21 C gt Verify the following amounts by clicking the Peek button on the button bar to view the form These amounts should automatically carry and print on the balance sheet of Form 1065 page 5 Beginning of End of
2. 177 1040 Drain Times een 178 E File Extensions 0 0000 179 990 E Fil 15 ois neo put aka EROR ee eR AER 180 1041 Be Biles uoa curie eer rer m SO ga 181 1065 E File pv 182 1120 11208 E File eee 183 5500 BPS ccce std toc e e m e hn 184 Michigan Business Tax MBT E File 185 E File Mandates 00002 iarsi 185 Financial Products 191 E File Center cocos eset ER RR IRE S 192 E File Bank Transmission llus 192 Check Alignment 00002200 e 193 Print Checks iue ieee ie e RR 193 Issuing the Check llllellllsesesn 195 Reprint Checks 0 0000000 eee 195 Lost or Stolen Check socs ccssrississressa 196 SUMMALY 5 4024 sp ERE EE eee Ed 196 Database 4 essere eee Rem ee 197 Reports xzoszsendes nedare S DIRE DER CRAS PD 199 Helpful Lanks i Rx SES 200 Help Menus i222 REI RR 201 States and Cities cose eas 203 State and City Access 0 0005 203 Ohio Cities ii Leche eee SR ED 204 Multiple State Processing 205 Multiple State PUP Codes 206 State and City Forms 245 206 State W 2 W 2G 1099 R 1099 Misc 1099 G and City W 2 206 Multiple ES Payments and Vouchers 207 Business Systems 208 New Business E Filing Screen 209 1041 Sample Return 210 LLL Table of Contents ix 1065 Sample R
3. 1 New Features 222ewewsa ane x uk ern 3 New System Features Forms and Schedules ios oy a ke 4 Installation 4454445949299 4 724442 9 0 7 Initial Configuration 0 0005 9 Updates 2s ster oi xe rae tue Y Ree 20 General Instructions 22 Button Bar ies ev EIOS depos 22 Menu Bat vadack se pacceee ieee ode REESE LES 23 Status Bat osea E VERA et x qa 24 Workspace Modes lslslslsslssesss 24 Forms Pane 5 go UpR CEST CREE 25 Summary Pane ssskecrers Re x ee 27 Screen Symbols e eee eens 28 Form Links eere REY bea 28 COIGTS ce esses vibes epis a ae alee 4 29 Helpful Hints rre IRRI 50nd RUE E 30 1040 Sample Return 36 Enhancing Your Performance 57 Control Data peesi oan hae eae te boni 57 Proforma Clients from 2010 to 2011 59 Table of Contents v Updating System Files 0 60 Client Selection Screen 0004 61 General Information Screen 65 Simple Tax Refund Wizard STaR 67 Married Filing Separate 0 79 Data Path 2254 40 ber Ee ER eos 83 Organizers iu oed nha ewes ee d Rad ides 83 SeCUELY cus s amp Sites Rew T DER ERAS e 85 Client Status i cese eee ead ae Puan 89 Batch Processing Clients 91 Managing Your Clients Data 91 Management Reports 2 0 5 93 Status Drawer icri kr ERRAT SERATA 95 Asset Tracker
4. Clients Acknowledgements Database Bank Reports System 1040 v Samples Mode ot O on Overview Historical Totals Acknowledgements 0 Firm Information Checks a Drain Times MOM Alerts 12 Reli tes Compare Financial Products Financial Product Summary a Refund Cycle Chart Financial Product Confirmation Letters a Where s My Refund Enrollment Eko Pending e In Send Clients At Filing Center a State EF Information ALIRS State Mandate At it D Rejects a Bank a Held At Filing Center a Schedule A Financial Product Enrollment Financial Product enrollment is available in the E File Center Click Financial Product Enrollment on the Overview screen to enroll Completing the Client Bank Application Because each Financial Partner s bank application varies reference the Helps at the bottom of the Financial Product screen within the software for details Financial Products 191 E File Center a The E File Center is where you will handle all e file and bank transactions EF Ctr System 1040 Extensions Samples Mode oft on Overview Historical Totals Acknowledgements IRS Website MOM Alerts Release Dates Financial Product Financial Product Summary Refund Cycle Chart Enrollment Confirmation Letters Where s My Refund Documents In Send Clients At Filing Center State EF Information AURS State Mandate At St
5. 6 Search Allows you to search for a specific office by account number address city state contact name or office name 7 Return Mode e Standard Use when working with regular e file returns e Extensions Use when working with e file extension returns e Other Use when working with other e file returns e g amended 8 Samples Move radio button to On to work in e file sample simulation mode Move radio button to Off to work in live e file return mode 9 Office Group Setup Allows you to create unique groups 10 Options This option allows you to select Office Only Overview displaying an overview of the office information The Office amp Tree Overview displays offices associated with the parent office in a tree format 11 Actions Click Reporting to produce federal state bank and other reports Click Manage Office to view specific sub office or child office details Click Add Child Office to add child or additional offic es to the parent or main company tree 12 Action Items Displays a summary of the items that need action Items include financial product enrollment fees reject returns and checks to print 13 Current Status Displays the number of returns that are in send cli ents at the filing center IRS and states 14 Daily Activities Displays daily activity totals for federal and state returns and financial products 174 Creating a Group To s
6. This tab contains several items that can be disabled Tag the items to activate the related Suppress feature Forms This tab contains options relating to specific forms and sched ules Tag the items to activate the related feature Audits This tab contains options that relate to audits generated by the program Tag the items to activate the related audit features Mouse This tab allows you to adjust the mouse input output control speed gt Many of the Control tabs are user specific Click the tabs to access the various Control Data functions 58 Control Data t3 Firm Access Paths Switches Startup Suppress Forms Audits Mouse The four highlighted key lines must be entered exactly as shown on your license notice Firm Name 1040WORKS FINAL CD LEVEL2 Contact Name Street Address 1265 SPORTSPLEXDA Zip sx City KAYSVILLE State Firm E mail Address QAO taxworks com ur Employer ID No A Web Site Default EFIN Telephone 0000000000000 Service Bureau ff Fax 0000000000000 OK esc Cancel Help Proforma Clients from 2010 to 2011 gt Beginning in 2011 what was previously referred to as Updating Clients will now be referred to as Proforma Clients To simplify your tax practice procedures we have provided a Proforma feature This option will carry client information from the 2010 program to 2011 eliminat
7. z Business returns 1041 1065 1120 and 1120S must use actual expenses A vehicle expense worksheet will print for each vehicle entered in the gt Asset Tracker detailing entries on the Vehicle tab LLL Enhancing Your Performance 1Q3 C Enter the date of disposition D Enter the gross sales price E Enter any other information for the 1 Backhoe Loader e 180900 sp ecific typ eo f Backhoe tuader Cost or Other Basis 45000 do 5 E gos disposition am E a Expense of Dispostion 9 8 GlorLaserPrinier Gain Loss 190900 Depreciation Allowed 45000 Estimating software Adjusted Basis F Click the Button Hydraulic Excavator Gain Loss 190900 Tablet PC to access the Tool Trailer Addl Depr After 1975 Al t ti Sips Track Loader Appl After 1975 100 ernative mini ia Recap Amt Atter 1975 7 nited Tractor mum Tax AMT H Sche at Gain Depr after 75 7190800 ae ais 8 SchE 2 Addl Depr 1969 1975 Depreciation Recap Ant 63 75 allowed detail SERIES Sec 1250 Recap Amt Sec 1231 Gain 104 Disposition Tab The Disposition tab is used to dispose of assets Use the Group Selection box to group assets for sales Form 4797 installment sales Form 6252 like kind exchanges Form 8824 or casualties thefts Form 4684 New Sp low Calc 179 Disposition Information Group number arr EE Carry to Form 4797 Part Part 3 Sec 1250 bd l ESN
8. 20 o 00 CC 1040 Sample Return 47 48 Step 15 Schedule A Before moving Mr and Mrs Jones rented a home They purchased their first home after moving and want to see if they can itemize deductions All of their significant medical expenses were covered by Richard s health insurance policy They also had some charitable contributions Let s prepare the 1040 Schedule A to see if it is beneficial for them to itemize deductions A On the General Information screen click the Schedule A link B Enter the following tax information on the correct lines e Previous year s state income tax paid this year 209 State and local real estate taxes 0 00 lees 1 171 For purposes of this tutorial we will not evaluate the sales tax deduction C Richard and Stephanie paid 6 174 in interest on their mortgage for their personal residence It was reported on Form 1098 D Enter the following charitable contribution information on the correct lines Cass Chukehi s err ERBEN 1 395 Cash Boy Scouts of America iile 250 e Non Cash Miscellaneous items FMV 200 Entries made in the contributions simple grids are registered to the Auto fill Library To edit this library click the Settings menu and select Libraries E Click the green arrow button at the left of the input form control bar to return to the General Information screen Step 16 Form 3903 Moving Expenses Aft
9. All system communications will be done online You can use the ISP of your choice However we have found that high speed connections such as cable modems or DSL allow you to interface with the program online much more efficiently There are many features that are only available when con nected to the Internet Testing Your ISP Tests the capability to ____ ______ upgradetupload Communications The program is programmed to recognize and automatically launch your ISP If you would like to perform a test of your ISP through the program click the Help menu and select Test Communications 1040Works Test Communications Lok d load a Ping options are used by Ur ide Upload Si Re Pit d n eue s oa i E eree server Response LM Techical Support client files ana other tas EF Web Site Server Response Ping troubleshoot Internet problems A Tests electronic filing and Close Help upload related tasks test Click to perform the selected Results Measures time to upload and download a small file Typical 3to 10 seconds Upload Clients 7 Upload There are three Upload client features Upload a client to support while in the return If you have questions on a client s return you can upload the client to support and attach a note to the client file When prompted you may write a short message and support will research the problem and e mail or call you back with an answer Call or e mail
10. D Click the Print icon to print your selected report 1 The Asset Tracker will produce the following depreciation reports Federal current depreciation AMT current depreciation Non conforming State depreciation Two Year Comparison Report The program has integrated a Two Year comparison Report This tool can help you provide important billable financial planning services to your client This is a valuable service to provide every year to assist your clients in reaching specific goals You can create this whether you provide associated investment and or insur ance services These reports are located near the bottom of the Forms pane You may create a quick draft plan set during the tax interview using estimat ed amounts or schedule a detailed meeting later for in depth planning This allows the client to think about their goals with a rough draft in hand The Two Year Comparison Report is a direct result of the tax return It compares key items on the prior year s return with those on this year s return Prior year data is carried forward during the update process If the tax software was not used to prepare the return in 2010 enter the applicable information To produce the report you can check the Prepare Two Year Comparison Worksheet box on the 2YR 2 Yr Analys input screen or check the Two Year Comparison box on the PO Options input screen This report can also serve as a Personal Income Statement to a lending ins
11. Eorgot Login Cancel Help Security Preferences 1 Click the Preferences tab 2 Check the boxes to secure opening viewing and access to clients in dif ferent areas of the program by SSN EIN EL NNNM set aloes Require SSN EIN entry to open clients Require SSN EIN entry to view clients in Management OK esc Help Enhancing Your Performance 87 88 Secure Folders You have the option to secure folders To access this feature Security must be enabled 1 To create a secure folder click the Clients button 2 Click the Edit Menu and select New Folder 3 Enter the folder name and the Password Click OK Master Password and click OK Enter a New password for the folder If you forget the secure folder password click the Reset button Enter the and click OK Management Security 1 Click Mgmt on the button bar If you have restricted access to Client Management you must provide the Master Password before entry is allowed 2 Clients in secure folders WILL automatically appear If desired you may limit access to clients in secure folders While setting up security select the Preference tab Check the box to Require SSN EIN entry to view clients in Management After enabling this feature clients in secure folders can only be accessed by entering the SSN or EIN Forgot Password Change Master Password 1 If you forget the Master Password click the Workbenc
12. M 1 Schedule 208 229 230 M 2 Schedule 228 229 230 Managing Your Client Files 61 Management 88 Clients 91 Labels 109 Reports 93 94 Multiple Office see Multiple Office Management Management Letters 113 117 Management Reports 93 94 Management Security 88 89 Mandates 236 242 Married Filing Separate 46 79 82 Input 79 80 Split Return 80 81 121 Master Password 15 16 85 89 Menu Bar 22 23 Modernized E File MeF 156 177 M O M see Multiple Office Management Mouse Settings 58 Mouse Wheel Control 32 Multiple 32 98 107 136 147 173 195 Client Returns 64 Forms Display 26 PUP Codes 206 States 151 Multiple Office Management 164 173 176 N O Net Income 227 New Assets 46 225 New Clients 66 205 New Features 3 New Folder 36 63 88 New Forms 33 Nonresident 46 49 207 Notes 21 49 93 121 155 Ohio Cities 204 205 Optional Entry 28 Ordinary Expense 223 224 Ordinary Income 223 224 Organizers 64 83 85 Other Printable Forms 133 134 Other Products 239 Other Systems 236 237 Output Pane 22 32 55 Override Entry 28 P Q Paste Amounts 35 Partnership 1065 5 142 150 179 182 185 208 221 235 Password 15 16 85 86 87 88 158 161 162 164 Payments 24 51 207 PDF 2 55 125 167 196 Phone Number IRS E File 176 181 182 183 184 Piggyback 151 178 PIN 75 144 148 152 155 Preparer Data 60 Preparer Options PO 38 213 217 222 Print Features 125 134 Advanced Form Deli
13. 2011 Tax Software Reference Manual Tax Prep Software Reference Manual for Tax Year 2011 License Agreement IMPORTANT INFORMATION READ CAREFULLY BEFORE INSTALLING SOFTWARE This End User License Agreement the Agreement is a legally binding contract between RedGear Technologies Inc Licensor and you This Agreement governs your use of the software and accompanying documentation the Software Be sure that you carefully read and fully understand this Agreement YOU AGREE THAT THIS AGREEMENT IS ENFORCEABLE LIKE ANY WRITTEN NEGOTIATED AGREEMENT SIGNED BY YOU LICENSOR IS WILLING TO LICENSE THE SOFTWARE TO YOU ONLY ON THE CONDITION THAT YOU ACCEPT ALL OF THE TERMS OF THIS AGREEMENT YOU PROVIDE YOUR CONSENT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT BY INSTALLING LOADING OR OTHERWISE USING THE SOFTWARE IF YOU DO NOT AGREE TO ALL OF THE TERMS AND CONDITIONS OF THIS AGREEMENT DO NOT USE THE SOFTWARE 1 License and Permitted Use The Software is licensed not sold Subject to the terms and conditions of this Agreement Licensor grants to you a limited non exclusive non transferable right to install use and display the Software on multiple computers within a single office You may copy the Software for backup archival and transfer purposes only provided that the original and each copy is kept in your possession or control and that your installation and use of the Software does not exceed that which is allowed in
14. B From the Electronic filing options drop down box select 1 E file return EE 1041 Sample Return 211 G Enter SMIT as the Name control In the Form 8879 F and Form 7004 area enter the following PIN infor mation e Taxpayer s PIN 88888 e Practitioner s PIN 33333 e Taxpayer entered PIN Yes e Fiduciary PIN signature date 03 06 2012 In the Electronic Funds Withdrawal section check the Payment with electronic funds withdrawal box Enter the following bank information e Bank name Arizona State Bank Routing transit number 012345678 e Bank account number 7632154 e Type of account Checking Payment date 04 10 2012 Click the green arrow button on the input form control bar to return to the General Information screen Step 8 Finishing the General Information Screen A gt Since the Smith Trust is a simple trust check the Simple box below Type of Entity Enter the Date Entity Created as 02 19 2001 The dashes are already provided and do not need to be entered Enter Trustee in the Title of Person Signing Return field Enter Alan Smith in the Name of fiduciary or officer representing the fiduciary signing the return field Click the Flip button on the button bar to view the information entered in the Heading section of the output form Click the Flip button again to return to the General Information screen Instead of clicking the Flip button simply right click on the output form itse
15. If you have not completed the bank enrollment process please reference Financial Product Enrollment section Because each Financial Partner s Bank application varies reference the Helps at the bottom of the Financial Product screen within the software for details Income or Deductions Selecting the Click here to show the Income or Deductions page link will return you to the related list allowing you to select and access the desired input screen Wed CHH Filing Information SSN gt Consents gt Personal Information Dependents Dependent EIC Due Diligence Taxpayer EIC Due Diligence gt W 2 gt Elli You will see a list of examples of additional income and deduction items that the Taxpayer may have requiring you to access the Standard input screens where other forms can be selected and tax information entered Press the arrow keys to scroll through the list Press Enter on the desired form to access the related Standard input screen Form 1099 MISC Miscellaneous Income Deductions page of the STaR Ownership code T S El Wiza rd N Recipient s name if different I Recipient s street address if different Recipient s ZIP if differen sss I Carry incometo CERT 1 E If carrying income to Schedule C E F or Form 4835 enter the multiple number If there is only one multiple ie one Schedule C enter 1 x
16. Pup History A Mets Installations 4G Cresk far Updates Configure Update Optians Cte A Load Sof Eonts G Tan Works Institute G Onine Knowledge Bese G Bevisions G Release Dates Li 4040 Tutorial LE 1041 Tutorial Li 1065 Tutorial AZ Test Communications E mail to Support Goto Assist FA ReadMe D Abou 23 General Instructions Status Bar The status bar is located at the bottom of the screen It displays the client s name SSN or EIN and return status AGI and other amounts are displayed only when the Summary pane is minimized WILLIAMSON JACK 555 55 4545 Workspace Modes The Workspace is located in the center of the screen and has three modes AGI 81 413 Total Tax 16 282 Total Pmts 16 500 Refund 218 Idle The screen is blank and some of the button bar icons are static Input This screen also known as the program desktop allows input of client data It is accessed through New or Clients Up to four panes can be viewed at once on the screen in this mode Use the Forms pane to select forms and schedules for data entry The Input pane is where client information is entered The FAQ button will take you to the most frequently asked questions issues solutions and helpful hints regarding the form or schedule you are currently working in The Help pane displays helpful information for the fiel t your cursor IS On You can also is scroll the
17. 1250 SS Recapture of Real Property Depreciation 190900 i AMT Depr Detait_ B Federat 45000 2006 Small Tools 907 Small Tools 2010 Suburban 2010 Toyota Prius AUTO Type of Disposed assets will appear in yellow on the Asset Tracker grid and tree gt Assets disposed after the end of the current tax year will appear in cyan gt All disposition forms are automatically generated within the Asset Tracker Group Disposition A Enter a Group number for the disposition group you are creating All assets in this group will use the same group number B Choose one of the assets as the Primary Asset C Select the type of fh Asset Tracker disposition A X m A New Sp Allow Calc 179 Close All Assets Color Key General Vehicle Disposition Form 8829 1 tis E Disposition Information 1 Sch A Points pm aret 6252 6824 c Sch C 1 Primary Asset Carry to Form 4797 Part Part 3 Sec 1250 2006 Small Tools T Di tion D Enter th 2007 Small Tools Meisten See AHS 51250 ISIE nier e 2010 Suburban Pate of Disposition x T 2010 Toyota Pri Sales Price enter 1 f 190900 Recapture of Real Property Depreciation o ia Prius Oy disposition date 7 fee Ace rer Mr AMT Depr Detaj Federat AUTO Federal Cestur Uther Basis 45000 Backhoe Loade 3 MA Gross Sal s Price 190900 E E
18. 201 Email 39 118 162 168 200 211 222 239 Enrollment 76 160 164 191 200 Envelopes 109 110 Estate 706 206 Estimate 51 207 Estimated Payments 51 189 Excel 31 118 171 196 200 Export iii 63 118 171 196 200 239 Extension 91 113 114 126 142 164 174 179 180 187 F FAQ Button 24 Federal Forms 125 127 204 Federal Mandates 185 Fees191 195 200 215 File Menu 56 60 63 95 111 112 114 235 239 Filing Status 39 70 79 81 Financial Planning 36 108 Financial Products 23 75 76 94 156 160 164 174 191 200 Disbursement Option 191 194 195 198 200 239 Enrollment 76 160 164 174 191 200 Fee 188 191 195 196 200 215 218 Pre paid debit card 191 Financial Reports Two Year Comparison 108 Financial Products Enrollment 191 Find 32 61 171 198 Firm Data 57 164 Fix Now 33 54 148 218 Flash Drives see Removable Media Folder See New Folder Forms See also Add a Form Form 8453 148 149 155 177 Form 8879 4 5 109 142 152 153 181 183 Form W 2 34 40 74 75 204 206 207 Form Filler 125 133 134 206 Form Help 49 207 Form Links 28 Form Used Tab 24 27 G General Information 37 116 222 General Information Screen 28 37 52 65 66 114 123 212 222 General Instructions 22 35 General Reports See Reports Get PUP Code See PUP Codes Gift 709 238 Government Instructions 49 201 Grid 31 79 Simple 31 Super 31 Group Status 93 H Hardware Requirements 1
19. 422262 4do av haus 96 Navigation sos odd aed SEXE ER EE 96 Asset Tracker Button Bar 00 98 New Asset ou ccna hes eb RE nee ces 99 LADS nc sepes Reus De Case ee dU panes 101 Special Depreciation Allowance Elections 106 Section 179 Information 107 Depreciation Reports 00 000 sre 108 Two Year Comparison Report 108 Barcode Reader i res nee n REA 109 Signature Pad oe ven tae tee 109 Labels i nr et e e nc e e ack 109 Slip Sheets and Envelopes 110 BackU ps cec sspe Ee De aU 111 Instruction Letters 113 Standard Filing Instruction Letter 113 vi Custom Letters ssc eR eda a eee BES 114 Step by Step Customizing a Letter 115 Other Letters 0 0 0 0 ccc RR RI 117 Federal Extra Sections 000 117 INVOICE eu uu ea a aaa Na RA odes 118 Utilities Settings and Workbench Menus 120 Print Features sodio con RI 125 Distribution Sets 00 0 0 ce eee eee 125 Step by Step Customizing Sets 127 Setting Print Defaults 128 Printing the Retum 0 0004 130 Advanced Form Delivery 131 Other Printable Forms 0 133 Internet Service Provider ISP 135 Testing Your ISP oec rg 135 Upload Clients llle llle 135 Download Clients 0 000002 eee 138 Update Systems eee eee e
20. Click to print the invoice settings IS IS IS IS IS IS IS 8 IS IS IS 8 IS IS IS IS IS IS IS IS IS IS I8 IS Enter a specific form to search for Fonts amp Borders OK esc Click to import information from a Click to export information into a CSV Excel File Sev Excel file While working with the invoice prices you can bill by amount per item or both address and website address Check the appropriate box es on the cli You have the ability to print the invoice with an override date email ent s Invoice screen You can import and export invoice information to and from Microsoft Excel spreadsheets CSV files This makes it easy to change prices and suppress items in the invoice Click the Export button and make your changes on the spreadsheet In the spreadsheet the number 1 is equivalent to a check mark in the suppress column When finished close the Excel file Click Import to import the spreadsheet back into the Forms and Invoice Settings pane 118 gt Entries made on the Invoice Options screen will override the invoice prices After importing a spreadsheet the changes won t appear until you click OK and reopen the Forms and Invoice Settings pane If you want to override invoice settings for a specific client while working in a client s return select Inv Invoice from the Forms pane You can enter specific amounts percentages
21. Federal ID number mE a ee oe E A A J TEES j 76 Click the green arrow to return to the Income or Deductions page of the STaR Wizard If after leaving STaR Wizard you wish to return click the STaR button After all entries are complete hit the Alt R keys or select Review You will be launched out of the STaR Wizard and into Standard screens where you will be able to e file or paper file the return Audit Diagnostics Guna mex Review Suggest Go REVIEW US SCHEDULE EIC CHILD S SOCIAL SECURITY NUMBER SUGGEST Entry must be a 9 digit it and be within he valid ranges n invalid social security number for at least one of the children reported on for El fora id Schedule EIC has been entered REVIEW US SCHEDULE E SUGGES A Schedule E amount has been entered on Form 1040 but no Schedule E is 1040 present Fix Now Complete Schedule E or SUGGEST lf Form 8615is needed make the appropriate entries on Form 8615 SUGGES Preparer Optic Tetum was not part of a spit please uncheck the box on the cee Click here RER TAX IDENTIFICATION NUMBER IN is As Fix Now A list of audits may appear All RED audits must be resolved before the return can be electronically filed Additional information may be required before the return can be e filed This will be indicated in the Audit Diagnostic Statements Shortcut Key
22. Federal and State Refunds and Balance Due As you make changes to the return the Summary pane will display real time calculations This pane is only available in the 1040 system To restore the Workspace screen to factory settings click the View menu and select Reset Desk or press Ctrl F5 To toggle between the Input pane and Output form click Peek Or click the View menu and select Peek You may also press F11 to toggle between panes 24 B Review This screen lists the contents of a client s return after it has been processed It is accessed by clicking Review Forms schedules and audits can be viewed or printed The Audit Diagnostic Screen may appear prior to the Review Pane 1040 Individual Installations Help 7 H Ack Cantal v 9 o Pez Mers ic Audits U2 Upload Status Close Update Afe 7 Aa n SS d ue Serice e i Prelimi Tax Return 2011 wens icazoora inc ue auto Click to access Client Selection Click to return to the Federal portion of the return Click to return to the State portion of the return Forms Pane The Forms pane displays a list of forms and schedules included in each system Click the folder to view a tree listing the forms and schedules for
23. Form 8879 and 8453 if applicable were generated Print Form s and have the taxpayer s sign the forms BEFORE transmitting the return to the Filing Center generated until all EF Audits filtered by the software have been gt client s e file and Form 8879 and 8453 if applicable will not be corrected We cannot verify SSN Name mismatches You must click Review instead of Audits to generate the e file return 33 Click Create E File s above the Forms pane to move the client s e file to the E File Center transmission screen Click OK Click Create E File s when ready to allow the return to be sent to the IRS and or state IX CEDE EITIETT Dele E Ee OM 2 Alo n Aus PUFs Upload Statue close Aik Coa Abs Upate Cee spe eim sire impu OM Glave xr ang J 1265 SPORTSPLEX D me KAYSVILLE UT 84037 a 07000 0005 ae a8 pene 01 2011 ao E ae JACK and WIONA WILLIAMSON 595 57 TOUR LANE SAN JUAN BAUTISTA CA 95045 as as HE Desc TACK and WIONA is S al retin Forn 1040 You ET eed to sign end mail is e mc m mo meo a6 ie 1 mco mo meo meo mo mo O mo m sd 32 m il 22 Rebel Hot m Que PI Cans Hb G SipFo Fol 2 Kon Soon m Basch m ALSchE CR z Mi Fa al LAO aE aE TaT OS ToP 500 Rew 7580 If the return contains a state e file type of Direct or State Only an additional screen will appear Verify
24. Help Menu 22 135 140 151 201 202 About 202 Alerts 202 Government Instructions 201 Program 201 PUP History 202 Release Dates 202 Revisions 202 Test Communications 202 Web Site 201 Helpful Hints 30 35 Helpful E File Tools 152 156 157 Hide Show Columns 65 I K Idle Mode 22 58 63 134 Import K 1 35 Individual 1040 4 34 36 65 67 142 144 150 156 166 170 176 179 185 187 203 208 Initial Configuration 9 20 Input Mode 61 63 Input Pane 24 49 212 223 Install 7 9 Adobe Acrobat Reader 8 128 220 NET Framework 1 7 9 Soft Fonts 2 128 Installation 7 9 Automatic Updates 18 19 Download 9 From CD ROM 7 8 242 From Internet 9 Refund Calculator 239 TaxPlanner 239 Uninstall 57 Updates 18 21 Instruction Letter 85 94 113 117 Internet Service Provider ISP 135 Alerts 23 141 202 Download 62 64 138 E mail Support 135 Help 140 PUP Codes 139 140 PUP History 140 Test Communications 135 202 Update 18 21 Upload 64 135 138 Internet Upgrades 139 Invoice 118 119 Exporting Importing Amounts to CSV 118 K Schedule 223 226 229 233 K 1 Received 35 204 Knowledge Base 168 202 L Labels 109 Letters 113 117 Custom 114 115 E File Center 168 Federal Extra 117 Standard Filing 113 Libraries 45 48 60 123 Employer Library 60 123 Routing Transit Number RTN 123 License Agreement i iv License Notice 13 57 158 List Business Codes 32 124 Login 11 15 86 87 158 162 M
25. Hol Keys m mimm arm amer As you advance through the fields note that the Spouse s last name will auto fill the same as the Taxpayer s last name If the Spouse has a different last name on his or her SSN or ITIN card you will need to over write the field by typing the correct last name Spouse and Dependents must match exactly what is on record with the Social Security Administration Verifying this information now will save valuable time in the later e file process When electronically filing the SSNs and last names of the Taxpayer When entering the birthday of the Taxpayer and the Spouse you can enter the month and day and only the last two numbers of the birth year The four digit year will automatically appear which will minimize keystrokes You do not have to enter dashes Phone numbers are required entry fields as they are required when request ing bank products After entering the zip code a drop down will appear with a selection of city names Use the up and down arrows or hit Enter to select the appropriate city After completing all entries on the screen hit TAB or ENTER to proceed to the next screen or required entry field gt At the top of each screen are breadcrumbs This will help guide you through the STaR Wizard and display your progress If the associated screen is complete the word will appear in green If you forget to com plete a field on one of the screens the word will appear in red If
26. Move radio button to On to simulate the e file process Returns will be passed through Filing Center steps but will not go to the IRS States Banks Move radio button to Off when working with live e files 11 New Links to new items that have never been viewed 12 Pending Links to returns that need to be sent are at the Filing Center IRS State unresolved rejects and returns awaiting bank approval 13 Historical Totals Keeps a running history of the number of e file returns that have been accepted as well as financial products that have been approved 14 Firm Information Allows you to change the firm information that will print on E File Center reports vs pulling the firm data entered with in the software 15 Multiple Office Management MOM Allows you to access and manage multiple office information and reports For users with multiple accounts and offices Refer to Multiple Office Management in this sec tion for details in working with this feature 16 Compare Financial Products Provides a comparison of fees for all banks 17 Financial Product Enrollment Links to the Financial Product Enrollment screen and helpful bank information 18 Helpful Links Links to helpful IRS information IRS websites and program documents 19 State Links Links to helpful state information and state websites To link to Alerts from within the E File Center click Alerts located gt under the New section Re
27. Restore 112 Balance Sheet 208 228 229 Bank See Financial Products Barcode Reader 109 Barcode See 2D Barcode Barcode Reader 109 Batch Process 64 91 Blank Form 134 206 Birthday Listing 94 Business Codes 32 124 Business Systems 208 209 1041 Fiduciary 208 1065 Partnership 185 187 208 Corporation 185 187 1120S S Corporation 5 Features 208 209 Button Bar 22 23 C Calculator 49 99 120 121 Cell Phone Number 38 Child Care Credit 39 Child Care Provider 72 Cities 203 206 Clear Text 31 Client Identification 195 Client Management 23 52 88 91 208 Client Number 31 37 63 221 Client Selection 20 22 23 25 31 32 36 55 56 61 65 83 112 136 157 168 210 221 Client Status 89 90 95 120 Client Updating See Proforma Clients Backup 111 112 Batch Process 64 Columns 32 65 Copy 30 62 63 Data Path Names 36 59 61 83 86 111 Delete 62 63 Download 62 64 138 EF Federal Status 157 EF State Status 157 Move 62 New 63 Organizers 64 Print 125 134 Renumber 67 Recycle 63 Refresh EF Status 64 157 Restore 63 97 112 Security 85 89 Transmit 150 158 160 150 Updating See Proforma Uploading 62 122 Close 22 35 63 78 133 Colors 29 30 Column Display 65 Comments 89 90 94 95 Common Forms 26 86 123 Confirmation Letters 163 167 168 Consent 70 122 Consent to Disclose 70 122 Consent to Use 122 Contributions 48 51 54 210 227 Control Data 31 34 57 58 122 Copy Clients 62 63 Custo
28. Tax Year Tax Year Inventories line 3 18 125 19 225 Bldg other depreciable assets line 9a 3 356 Accumulated depreciation line 9b 656 Total assets line 14 39 292 43 096 Partners capital account line 21 27 550 24 285 Total Liabilities and Capital line 22 39 292 43 096 This field carries automatically from Schedule A Cost of Goods Sold This field carries automatically from the Asset Tracker This field carries automatically from Schedule M 2 In the subsequent year the beginning balance sheet amounts need not be entered because the amounts will carry from the prior year ending balance sheet amounts to the subsequent year beginning balance sheet amounts during the Update process The detail statements will also be updated Step 14 1065 page 5 Schedule M 1 No entries are required for the AbleBaker Bookstore because all of the M 1 items carry automatically from other parts of the return A B C Scroll down to the bottom of the input screen to locate Schedule M 1 Reconciliation of Income per Books with Income per Return Click Peek to view the output screen On line 3 Guaranteed payments of 25 000 automatically carried from page 1 line 10 On line 6 Tax exempt interest of 50 automatically carried from page 4 Schedule K line 18a On line 7a Depreciation of 486 automatically carried from the Asset Tracker On line 9 Income loss of 74 222 automatically carried from page 5
29. This PIN must remain constant for all returns submitted at one location If the ERO moves from one office to another a unique PIN must be used for each office PIN Input Verification Do not check the Taxpayer s entered PIN s box unless the taxpayers touched your keyboard and entered their own PINs The default is Preparer ERO entered Taxpayer s PIN s Signature Date A Signature Date noting when the taxpayer PIN was entered is required If taxpayer and spouse PINs were entered on different dates use the taxpayer date Touch the letter T while in this field to auto fill the current date gt The signature form is eliminated when using the self select PIN program 154 Form 8453 U S Individual Income Tax Declaration for an E file Return Form 8453 will only be generated if the return contains forms or support ing documents that are required to be mailed to the IRS for e filed returns Form 8879 will also be generated and must be signed by the taxpayer s and ERO Reference EF E File screen for a list of supporting document forms E File Notes With the use of a PIN e filing is truly a paperless process The IRS allows electronic notes and explanations for e file returns To access notes and explanations while in the client s return click the Utilities menu and select Notes The screen acts as a word processor Notes and explanation pages will print as part of the return There are four tabs to select from
30. see a list of possible sections that will be put into the letter based on return information For instance if the return shows a balance due one of the fax due sections will show rather than a refund section D OOO 1040 Sample Return 53 C gt F In addition to this template we want to communicate two other items to the Jones family To preview these items expand the Extra Sections folder You will see a New Section and three defined sections We want to include the Charitable Contributions gt 250 and Other Services Provided sections Click on each to preview their content Now that we have previewed these custom items let s select them to print Click OK in the lower right corner of the Custom Letters util ity This will return you to the Letters input screen Check the Print Custom Letter box Make sure that TEMPLATE is visible in the drop down box for Federal Paper Filing In the Federal Extra Sections select the Charitable Contribution gt 250 and Other Services Provided sections in two of the three drop down boxes you can have up to three selected The extra sections will only be included in the federal letters before the Closing section We also want to include a separate privacy letter Select PRIVACY from the first Other Letters drop down box you can have up to three selected The Custom Letters utility allows for adding letters and sections Once a letter section is added it can be selected on the Lette
31. the Type selected i e Credits Income Payments There are four tabs Form Displays all available forms and schedules Common Displays commonly used forms and schedules Type Displays forms and schedules by type Used Displays forms and schedules used in the return you are working on Once information has been entered on a form the icon next to the form name will be shaded in blue To mark the form as completed right click on the form name and select Completed A red checkmark will appear To remove the checkmark right click and select UnCompleted T 7777r General Instructions 25 Select the user for whom you are customizing the Common tab Select the applicable sys tem Tag untag the forms to be listed under the Common tab Click to restore defaults distributed with the program Form Common Type Used Selector B Select the applicable Forms pane tab GI General Info DI Dependents LTR Instr Ltr INV Invoice PO Options ADY Advocacy EF E File 1 1040Pg1 2 1040Pg2 W2 Wage W2 FFF Farainn al gt 2 D B E E CJ EJ D3 DJ D D If there are multiples of a form they will be listed below the related form or schedule Click to expand or contract the list To add a form to the Common tab while working in the client s return click the Form tab Right click on the desired form Select
32. will carry to line 18a of Schedule K Click the Close button 2 Click the Dividends grid button on line 6 Enter the Dividend Income Description of Amazon com Stock Press the Tab key to move to column 1a and enter 150 as the Total Ordinary Dividends Press the Tab key to move to column 1b Notice that the 750 automatically appears in column 1b This is to help eliminate key strokes as most ordinary dividends are also qualified dividends Column 1b can be changed if necessary Click Close to return to the 1065 page 4 input screen 3 We will create a Detail Statement for the contributions for line 13 Click the line 13a Cash contributions 50 input field then click the Detail button on the button bar and select Detail Statement Enter the descriptions as United Way and American Cancer Society on separate lines Enter the amounts as 300 and 350 respectively Close the grid Click Peek to view the full form Verify that line 13a shows the total contributions of 650 C Enter 52 880 on line 19a Distributions of cash and marketable securities Frank and Susan each withdrew 26 440 from the partnership Step 12 1065 page 5 Analysis of Net Income A In the Forms pane click on 5 1065 pg 5 on the type of partners indicated on the Schedule K 1 input screen The gt The Analysis of Net Income section will be automatically filled out based Schedule K 1 input will be deferred to a later step in this tutorial 200 5 o 0
33. 2 Tag the client s and click Upload 3 Select Account Number Verify the account number is your assigned account number You must enter an Upload Filename The filename can be no more than eight numbers letters Remember the filename because it will be used to download the file later Click Upload 4 The client file s will be uploaded to the server and will reside in the specified account number folder Click Close LLL Internet Service Provider ISP 137 Upload clients to your own account folder Click to upload the clients gt 5 Continue to the Download Clients section for instructions on retrieving the uploaded file s Upload Clients 1040Works Support Team Account Number Upload Filename m Enter the upload file name Cancel Download Clients Download client s from an account bin Click Download to retrieve the uploaded files gt If you use the same filename for several transmissions it will overwrite any files folders previously uploaded Be sure to remember the filename as support does not have access to this Proceed through the following steps to retrieve files you previously upload ed to your account bin Click the Clients button Click Download 2 3 4 Enter the filename assigned during the upload process Select the desired SSN EIN option Click Download The client file s will be downloaded to your computer A sc
34. 2011 Term L auto populates e Sales Price 11 736 e Cost or Basis 4 214 Click Close Click the green arrow button on the input form control bar or press CTRL B to return to the previous input screen Step 12 Form 1041 page 1 Deductions A Scroll down to the Deductions section of the Form 1041 page 1 input screen B Online 11 enter 735 in the Tax Other field for intangible taxes Note The program automatically allocates indirect expenses to tax exempt income Expenses deemed indirect are e Fiduciary fees e Attorney s fees e Unlimited other deductions e Limited other deductions Taxes are not deemed indirect by the program and therefore are not auto matically allocated Override the allocated amount by entering the amount directly in the input field For purposes of this tutorial leave the return as completed by the program C Enter the following additional deductions e Fiduciary fees 430 e Attorney fees 220 18 This is because the program automatically calculates these lines based on the entries in the ncome section as well as the entries on lines 10 through 15b of the Deductions section gt You will notice that the Form 1041 page I input screen skips lines 16 e on page 2 of Form 1041 Most of the fields on Schedule B are populated based on information entered in the program such as whether the trust is a simple trust or a complex trust and whether any discretionary distributions we
35. 5500 information 5500 Drain Times View the latest e file drain times in the E File Center From the Overview screen click Drain Times in the Helpful Links box E File Help Desk The help desk for EFAST2 is 1 866 GO EFAST 1 866 463 3278 and is available 8am to 8pm ET Monday through Friday Michigan Business Tax MBT E File Michigan mandates electronic filing of individual and business returns with 350 000 in gross receipts Michigan does allow certain waivers Form 803c can also be filed electronically E File for Michigan Business Tax MBT 1040 1041 1065 1120 and 1120S systems is available through the software To e file MBT returns from the E File Center select MI MBT from the System drop down box E File Mandates Federal Mandates 1040 1041 Preparers who prepare more than 10 individual or trust returns in 2011 will be required to e file 1065 All 1065 partnerships with 100 or more K1s must be filed electroni cally A penalty of 50 per partner will be assessed for those not complying with the mandate Certain waivers are available but are very limited 1120 1120S All 1120 11208 corporations with assets of 10 million or more and filing 250 federal returns must e file 990 All 990 exempt organizations with assets of 10 million or preparers filing 250 federal returns must e file 990PF has been added to the 250 fed eral return mandate as of tax year 2006 990N ePostcards for small Exem
36. CONFORMS TO ANY DEMONSTRATION OR PROMISE iii ARISING THROUGH COURSE OF DEALING COURSE OF PERFORMANCE OR USAGE OF TRADE OR iv THAT ACCESS TO OR USE OF THE SOFTWARE OR ANY PART THEREOF WILL BE UNINTERRUPTED ERROR OR DEFECT FREE OR COMPLETELY SECURE OR THAT PROBLEMS WILL BE CORRECTED LICENSOR AND ITS AFFILATES AGGREGATE LIABILITY ARISING FROM OR RELATING TO THIS AGREEMENT OR THE SOFTWARE REGARDLESS OF THE FORM OF ACTION OR CLAIM AND WHETHER BASED ON WARRANTY TORT MALPRACTICE AND OR OTHERWISE SHALL NOT EXCEED AN AMOUNT EQUAL TO THE TOTAL OF ALL LICENSE FEES RECEIVED BY LICENSOR FROM YOU UNDER THIS AGREEMENT LICENSOR SHALL NOT IN ANY CASE BE LIABLE FOR ANY SPECIAL INCIDENTAL CONSEQUENTIAL INDIRECT OR PUNITIVE DAMAGES NOR FOR ANY LOSS OF PROFITS OR REVENUE EVEN IF LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY THEREOF LICENSOR SHALL NOT BE RESPONSIBLE FOR LOSS OF USE OF SOFTWARE OR OTHER PROGRAMS LOSS OF DATA COSTS OF RE CREATING LOST DATA OR THE COST OF ANY SUBSTITUTE EQUIPMENT OR PROGRAMS Without limitation of any of the foregoing you agree that Licensor and none of Licensor s licensors suppliers affiliates or subsidiaries will have any additional liability or obligation for any claim cause of action or injury that you or any other person may have as a result of 1 your use or inability to use or access the Software 2 your inability to file any tax return by the filing deadline 3 any access to or use of your user
37. Clients Open the client and make the necessary corrections 2 Review the return and verify Form 8879 Click Create E File s Verify the information and click OK 3 Repeat Step 3 Transmitting Returns For a detailed list of federal reject codes reference the online knowledge e base For state reject codes reference individual state e file handbooks 168 E Filing Imperfect Returns The IRS and states will accept e filing of imperfect individual returns on second or subsequent transmissions for returns relating only to reject codes 501 or 504 dependent name control and SSN mismatch On the first transmission of a return containing a dependent name SSN mis match the IRS acknowledgment will be returned with a code R indicat ing Rejected Instructions will be noted in the acknowledgment on how to handle the reject Verify the data and make corrections if applicable Repeat the transmission process If you find the information to be correct the return may be retransmitted as an imperfect return and will go through exception processing To send an imperfect return 1 Click Clients Highlight the client and click Open Select EF E File from the Forms pane Check the Mark return as Imperfect box Repeat the transmission process 2 When the IRS acknowledgment is received a code E will be returned indicating Exception Processing The IRS will accept the return into the system but the relat
38. Control Data t3 Fim Access Pathe Switches Startup Suppress Forms Audis Mouse The four highlighted key lines must be entered exactly as shown on your license notice Fim Name Expert Tay Service Contact Name Street Address 1265 SPORTSPLEX DR 84037 Ciy KAYSVILLE fur Firm E mail Address jeff ets com 11 1111111 Web Site www el com Telephone 12356 7890 SemiceBueaut Fax 123 456 9870 Employer I Default EFIN gt The EFIN can be entered during the initial installation configuration o Enter your EFIN Enter your Starting Batch number Enter your Ending Batch number If you are using several stand alone non networked computers you need to click the Settings menu and select EF Settings Click the EFIN Batches tab Enter your EFIN on line 1 Enter a different Starting Batch number on each computer A batch represents 99 returns The Ending Batch number 1s optional but helpful if you want to ensure two computers do not run into the same range of DCNs EF Settings t EF Switches EFIN Batches Oniy enter Starting and Ending Batch Numbers if the program is installed on more than one stand alone non networked computer Entering an Ending Batch number is optional but iiti not entered there ie a risk that 2 computers could run into the same range of DCN and cause Duplicate DCN rejection errors State returns wil use th
39. Credit Checklist LLL 1040 Sample Return 39 40 F gt gt J Questions MUST be answered for any child used in the EIC calcula tions In addition to questions on the dependent grid required fields on the EIC input screen relating to Form 8867 must be answered If the software can determine that a return would qualify but the 8867 questions have not been completed diagnostic audits will display alerting the preparer to complete the required information Click the Close button to continue If an override is needed for the number of children that lived with the taxpayer during the year enter the override on the Dependent Information input screen Click the Care Provider Information grid located below the Dependent Information grid on the federal General Information screen This grid can also be accessed from the Form 2441 Input screen In California Mary Smith watched the children Her address is 912 Ottawa Avenue Her Z P Code is 92507 She lived in Riverside California Her phone number is 945 715 6784 Some states require the phone number so the program has included it on the entry screen Her SSN is 545 34 1113 She received 3 699 for watching the children In Utah Wee Care cared for Trevor and Anna Wee Care s address is 502 East 200 North The Z P Code is 84037 The phone number is 801 752 2435 Their EIN is 87 9641646 They received 4 361 for their services Click the Close button to c
40. E help Phone Number 1 866 255 0654 Ogden Form 8879 PE Retention When using the PIN program the client must sign Form 8879 PE before transmitting the return This must be retained by the ERO for three years 1065 IRS E File Application To participate in the IRS 1065 e file program you must file Form 8633 with the IRS Check box 1065 under question 4 The easiest way to apply is through IRS e services at http www irs gov taxpros article 0 id 109646 00 html 1120 11206 E File The IRS has mandated that all 1120 1120S corporations with assets of 10 million or more and filing 250 federal returns must file form 1120 11208 electronically The 1112 1120S e file process is similar to the 1040 1 On the General Information screen click the Electronic filing options link to access the e file screen 2 Complete the applicable information on the Electronic Filing Options screen 3 Refer to the 1040 e file section and complete the creating and sending an e file return process 4 On the E File Center Overview screen select 1120 or 1120S from the System dropdown box 1120 Drain Times View the latest e file drain times in the E File Center From the Overview screen click Drain Times in the Helpful Links box IRS 1120 11208 E help Phone Number 1 866 255 0654 Ogden Form 8879 C and 8879 S Retention You must use the Practitioner PIN program You will need to have the client sign Form 8879 C or 8879 8 before transmittin
41. Incorporation or State of Organization To add additional states click the State button on the button bar Click the States button located above the Forms pane Select additional states from the drop down box or enter the two letter state code s Displays the PUP code downloaded from the Internet Enter additional state abbreviations or select a state from the drop down box Click to download PUP codes Click to access a report containing all PUP code States to Process and PUP Codes State PUP Code Suppress LX J State EF File Type n e Resident M gg ACCESS ACCESS A Ju E JR OR RT OR OR UR UR UR iil requests gt C o e a ick to activate tate e filing ick to delete state from the return C ick to view the Move Up Down options The resident state must be the first state listed on the States to Process and Pup Codes screen in order for the program to correctly process the state taxes paid credit properly For new clients the resident state defaults to the state listed on the General Information screen 20000 TTE States and Cities 205 Multiple State PUP Codes If you are using the PUP code system you will need a separate PUP code for each state Reference the nternet Service Provider Per Unit Process PUP Codes section State and City Forms Occasio
42. L 13 201L 110018 AM Accepted 3 GREEN DAWN XXX XX 1031 us No At Filing Center JONES HAROLD amp SPOUSE XXX XX 5982 US No At Filing Center E STRAIGHT MARK amp JUNE XXX XX 1052 us No 11 11 2011 7 55 58 AM 11 13 200L1L00 14 AM Rejected Database Bank Reports Open the drop down windows to view each section Federal Summary E File Type US E File Type CA Bank Type Santa Barbara Tax Bank Type Fee Products Group LLC Transmission 0009 Transmission Doc Fee 9 22 2011 2 44 12 PM MST Acknowledgement 0000 Acknowledgement EF Fee 3 22 2011 12 00 00 AM MST Status 2000 status At Filing Center Accepted Amount 00 00 Amount 2 000 00 E State Details Financial Product Details E File Center Reports We have provided several e file and bank reports to help manage your cli ents information From the Overview screen click the Reports button Select one of the reports Account Overview Send Clients Acknowledgements Database Bank c poy System 1040 m Standard Extensions Other Financial Products Bank Product Disbursements Acknowledgements Denied RAL Alerts Funding Discrepancies Bank EF Summary Totals Preparer Fees from Bank Confirmation Letters Confirmation Letters Outstanding Preparer Fees Transmissions Transmissions Check Print Summary Checks Printed Checks Reprinted Check Print Act
43. Net Use your Land FIZ hays to nca the W Z from the grid FD to selec the W 2 for Edt O wno aeai T Taxpayer Ivi Employee s social security number 123 45 6789 Wage Information d 7 Soc Sec Tips 8 Allocated tips a City State d Control Number 9 Adv EIC Payment 10 Deps care benefits e Employee s name 11 Nonqualified plans 12a Code Name Cris Winter E Bey EE ub co f Employee s address and ZIP code 43 Pene a Address 1212132 l 14 Other 12c Code City State Zip Hooper UT 84315 ee FE k 12d Code 5 Locality name State amp Employer s State wages State income local wages Local income M 15 state ID number 16 tips etc 17 tax 18 tips etc 19 tax inaa options NY x Save a The W 2 Wage and Tax Information Screen appears next If the tax return is for a single Taxpayer the Taxpayer s SSN or ITIN will auto fill along with the address that was entered in the filing information Use the F11 and F12 keys to navigate within the W 2 List grid after more than one W 2 has been entered Use the F10 key to select a W 2 for editing When wages are entered in box 1 of the W 2 Screen boxes 3 4 5 and 6 will auto calculate If you need to re enter the wages in box 1 hit ReCale and boxes 3 4 5 and 6 will auto calculate again based on the entry made in box 1 74 After an Employer and EIN are entered once this information will be saved to an Employer Library database Later if you ente
44. Reconciliation information will be displayed Click Bank Summary List to view a summary of bank transactions Click Disbursements to 198 return to bank disbursement display Reports Reports are a great way to manage and track the status of your bank clients Database Bank system 1040 v Standard Extensions Other Samples Mode ott O on Reports Financial Products Archived Acknowledgements Bank Product Disbursements Acknowledgements EF Status Denied RAL Alerts EF Summary Funding Discrepancies Bank EF Summary Totals Preparer Fees from Bank Confirmation Letters Confirmation Letters Outstanding Preparer Fees Transmissions Transmissions Check Print Summary Checks Printed Checks Reprinted 3 Select tho roc ort women temo and otatec ond cont ber tics if appli LEE Soest Hane ca tenca Moda Dar on Select EF Ai w al Last Name QFederai Only QS8SN verte oan 9 state Only QDate Fen 0101 2011 te 09310 2011 doll IW Ascending Q Accepted Descendng Repeted Filing Returns Electronically 199 Helpful Links 200 4 Click View The report may be printed emailed exported to Excel or saved as a PDF file Click Close Bank Product Disbursements Lists acknowledgment status bank product and authorization information Denied RAL Lists declined RAL clients and associated denial codes Funding Discrepancies Lists clients who hav
45. Silver Spring H Click OK to continue Step 5 General Information A The first input screen will appear This is the General Information screen Notice that the Client ID partnership s name address city state zip county and EIN have all carried from the New Client screen B The partnership is a calendar year partnership The Fiscal Short Year is not applicable for this return Leave this area blank C The business activity for AbleBaker Bookstore is Retail Highlight the Business Activity input field Click the down arrow W button on the drop down box A listing of the principal business activities will appear in a tree format based on the North American Industry Classification System in the IRS form instructions Find Retail Trade and click the plus sign to expand the tree A more detailed listing will appear Select Book Stores The program will insert the Principal Business Activity as Retail Trade the Principal Product or service as Book Stores and the Business Code Number as 451211 D Enter the date the business started as 10 01 80 The Method of Accounting 1s Accrual For this tutorial enter your firm s email address on the Email address line Step 6 Preparer Options We will now go to the Preparer Options screen indicated in the Forms pane as PO Options Frank and Susan want to produce financial statements in the program in order to determine their ability to obtain financing for a future real estate investmen
46. Withdrawal grid Enter the following information on the US row top row in the respective grid columns Financial Institution Name Barnes Bank Routing Number 2 cce 0000 eee 123456780 Deposit Account number 5678877 Account Type 6 cee Checking DDIEEW 4 aig baie eX oh a CORTE RES A s DD B Click Close to return to the General Information screen C Check the Preparer is third party designee box If you would like to have this checkbox defaulted on all of the returns you lt gt prepare press Ctrl D after making the entry This will set the default To remove the default remove the entry and press Ctrl D in the empty field or delete it from the Defaults option under the Utilities menu Step 21 Custom Letters Before reviewing and printing the return we want to select some letter options that fit our needs for this client For the Jones family we will want to select two additional sections to add to the template Custom Letter A In the Forms pane click LTR Instr Ltr to open the Letters input screen To create or edit Custom Letters click the link below the Custom Letters heading to open the Custom Letters utility B On the left hand side you can navigate among the various Custom Letters To preview the Federal Paper Filing Custom Letter template expand the following sections 1 e the folder icons Federal Paper Filing and then Template Once Template has been expanded you will
47. Worksheet 2010 Overpayment to 2011 fi Refund all cvernssaent locaton Mahos States and Cities 207 Business Systems The software provides the following business systems B 1041 Fiduciary B 1065 Partnership B 1120 Corporation B 1120S S Corporation All state programs are available with each of these federal systems Business systems have the same features as the 1040 Individual program These features include Asset Tracker Audit and diagnostic statements Batch Process Client Management and reports Electronic signatures Multi state processing Real time calculation 9999999 Simple entry and integration of K 1s received Business systems offer the following additional features Carry assets from Asset Tracker to balance sheet Carry book tax depreciation differences from Asset Tracker to Schedule M 1 Calculate weighted average for change in ownership 1065 amp 1120S Produce election statements Manage up to 10 000 K 1s Electronic filing Perform Special Allocations on Form 1065 99999 Prepare Form 1041 A and or Form 5227 for charitable and split interest trusts Prepare Forms 1120 C 1120 H 1120X Sch M 3 Sch PH 208 Produce various information forms i e Forms 2553 2848 8822 SS 4 etc Track NOL and charitable deductions in 1120 1120S systems Track outside basis for partners and shareholders New Business E F
48. You can also copy the template by clicking New Letter A message will gt Click to access different 2 insert codes Click to change the margins E and borders 4 appear stating Please input a name for your new letter Name the let ter Sample and click OK You will be prompted to select Copy Letter or Blank Letter By selecting Copy Letter you can use the drop down box to select the Template or other existing Custom Letters Check the system you want to copy the letter to Click OK The template will be copied to the new Sample letter Sample will be listed in the Letters column Template letters cannot be modified They must be copied and renamed before changes can be made If the Sample letter is not expanded click the plus sign next to Sample This will expand the tree allowing you to view a list of sec tions that may be included in the letter based on tax return facts To make a change to the letter highlight the appropriate section To test this feature let s use the Footer section Click Footer Text from the Footer section will appear Place the cursor behind the word call On the left hand side of the screen click the Insert Codes tab Highlight and double click Preparer Telephone Number PRETEL will appear in the sentence When you print the letter the actual preparer telephone number will replace PRETEL After modifying the Sample letter click OK C Custom Letter
49. and change Click the button twice to suppress the audit for all clients the text on the but ton will be written in red Click the button three times to restore the Click here to suppress button To restore suppressed audits click the View menu and select Audits Suppressed Tag the audits you wish to restore and click Remove then OK 5 di Diagnosis imer Click to suppress audit Audit Trail The audit trail feature allows you to view in one place details on how an amount was derived Ctrl right click in review mode on desired line of the output form to access the audit trail A popup window will appear listing all form and schedule amounts that carry to the chosen line If an amount is derived from input related to another form the audit trail includes a link to the related form where changes can be made The audit trail feature is only available on the federal Form 1040 pages gt 1 and 2 Under Settings Control Data Switches you will see the switch Audit Trail in Review Mode Require Ctrl key right click to display Audit Trail The box must be checked to use the Audit Trail feature Verify Vital Data This useful utility will minimize e file rejects The utility will prompt you to re enter vital data If entries differ you will be prompted to select the correct entry To enable click the Settings menu select EF Settings click the EF Switches tab and check the Verify Key E File Informat
50. apply tax software updates Security Page 2 Apply tax software updates automatically on startup Apply tax software updates manually Prompt to install updates Security Page 3 Eon sofware startup lon software shutdown Software update reminder frequency Eight Hours v Software Changes System Updates Back Next L cancer Help _ Network Installation Update Settings Step 1 The Download Options section allows you to choose from where and how often the computer running the nitial Configuration Wizard will download updates We recommend that all computers use the Internet and shared net work location option This will ensure that all workstations on the network are always up to date However you can choose to have a computer update from the Internet only or from the Shared net work location only At least one computer on your network should be configured to check the gt internet for updates Step 2 The Update Options section allows you to choose when to apply software updates to this computer You can select to apply updates automatically on software startup or you manually apply the updates If you chose to apply tax software updates manually indi cate if you want the program to prompt you on software startup or shutdown Select a reminder frequency Click Next Start Page Serial Number Firm Data Page 1 Firm Data Page 2 Security Security Page 2 Sec
51. can be fed era l done by filing out the top three rows To add states to this list please close this window and open the PUP screen 021234567 123123123123 Savings None gt 021234567 321321321321 Savings None 30 00 50 00 25 00 elelelelelelelelelele Lelelelelelelelelefefe leee DD Direct Deposit of Refund EFW Electronic Funds Withdrawal of Amount Due Clear Data for AL Foreign Bank Is this refund going to or through an account that is located outside the United States Close Ese Update from Last Year For direct deposit purposes only you can select to split your federal refund in up to three accounts e One account The amount will default Account information will print on Form 1040 page 2 Two or three accounts You must enter an amount or percent on each line Account information will print on Form 8888 How Changes to Refunds Will Be Handled When Using Form 8888 Refund Increase If the amount of the refund increases the additional amount will be depos ited into the last account listed on Form 8888 Example If three accounts Form 8888 line 3 if two accounts Form 8888 line 2 EEL Filing Returns Electronically 145 Refund Decrease e Calculation Errors or Past Due Federal Tax If an error was made on the return or the taxpayer owes past due federal tax the decrease or offset amount will be deducted first fr
52. can view archived alerts in the EF Center Click Reports then Alerts under Archived This feature will keep you informed and help eliminate the need to contact Support nare aal erri room und ETATE Archive Subject Date Time Transmission Received 9 8 2010 3 17 59 PM 1 IRS EMS Power Outage over Labor Day 9 1 2010 3 46 18 PM 2 IRS EMS Power Outage over Labor Day 9 1 2010 3 46 03 PK 2 After tagging Transmission Received 3454 PM 1 EF alert s click to Transmission Received 19 2010 2 47 40 PM 1 EF Mark as Viewed or Transmission Received 3 19 2010 11 48 22 AM 1 EF Archive Transmission Received 8 19 2010 8 12 36 AM 1 EF E test 8 6 2010 11 06 13 AM 3 Fed mj 8 6 2010 10 44 21 AM 3 Fed a 8 6 2010 8 48 37 AM 1 ST Transmission Received 1 30 2010 3 14 14 PM 1 EF Transmission Received 7 30 2010 3 12 25 PM 1 EF oie Prey 1 2 3 4Mex Pagesze 12 46 items in 4 pages The program will automatically check and warn you of new alerts when you open and or close the software unless you suppress this feature under the Startup tab in Control ter The E File Center is a powerful tool that allows you to send receive and track e file and bank information Reference the Filing Returns Electronically section for complete instructions LLL Internet Service Provider ISP 141 Filing Returns Electronically The software comes with an integrated electronic filing
53. clients We will dis cuss other search options later The Find by feature searches based on the column header selected Right clicking on a client will display a menu noting some of the most common actions including Quick EF Lookup and opening a state return Navigating Client Selection Button Bar G S Assets Fed State Detail eo 3x EF Ctr Mgmt New STaR y ajr 9 6 S H Peek Review i PUPs Upload Status Close Ark Control A Alerts Lo Update Clients B EF Center Opens the E File Center B New Alt N Creates a new client file Enter the information on this screen and it will carry to the General Information screen When entering a new client in the Samples directory a warning will appear prompting if you want to continue B Open Alt O Opens an existing client Tag the client and click Open to open the client file in Input mode EE LUN Enhancing Your Performance 6 B STaR Simple Tax Return Wizard that allows you to quickly enter client information Screens are intuitive and will proceed based on data entered B Review Alt W Processes the client return for completion Reviewing the return will bring up any audits and generates client letters Press Ctrl W to review the return without audits B Copy Alt C Copies the client file from one path or folder to another This is especially helpful if you have saved clients to a disk or
54. contents to view infor mation for the entire form or screen being viewed 1040 Individual Eile Edit View Forms Utilties Settings Workbench Installations Help gt v m m5 x A 9 2 A EF Ctr Mgmt New STaR Clients Assets Fed State Detail Peek Review Audits PUPs Upload Status Close Ark Control Alerts QI aw ue EZ Espa ol EF Timing for Sep 1 DD Sep16 ot Check Sep 23 General Information Advanced Disester Feliet Beta 2 Updater Test isse Helos Taxpayer Spouse frac B 1 1040Pg1 B 2 100092 DD W2 WegeWw2 D FEC Foeign W2 ferzzrawso df Dierert D W7 AppITIN DD W2G Gambling W2 rss ss asas ixx iicisss corrreacron rras xr Bome wor 06 01 1965 age 43 11 15 1971 Age 40 I ves I ves Address County and School FLOR TARE psoas SAN EENTTO ape Euw JUAN DAUTISTA ea maus Header ine wil printat the top of page T ofthe man tax rm See Helps This fieldis desgned io accommerate any spacial header that the taxing authority ma Wher is prepared this inform particular return Examples inchde di informa a mpl n an amended return nly on the amended return The WILLIAMSON JACK 555 55 4545 AGL 81 413 Total Tax 16 282 TetaPmt 16 50 Rehnd 218 The Summary pane displays client information such as ACI Total Tax Total Payments
55. date for filing Form 706 and can I file an extension As The due date for Form 706 is nine months after the date of death An automatic six month extension can be granted by filing Form 4768 The IRS releases the current year forms in September The 706 system is the only system to have a complete set of forms for two years so the death date is required to determine which forms need to be filed Q Why aren t any forms appearing when I review the return A This usually occurs when the date of death has not been entered on the current year return This is a required field A dropdown box is available to indicate prior or current year Q What are the supporting schedules for Form 706 A Review the summary at the bottom of Form 706 Recapitulation page 3 for a list of the schedules Information to Note On January 1 2008 the estate and gift tax treaty between the US and Sweden was terminated therefore Sweden has been deleted from the countries and Credit Under Treaties Schedule P Form 706 cannot be updated as it is a one time filing only filed after death Form 706 comprises mostly input grids Assets and property are entered on Schedules A through I Items carry to Schedule M from the asset schedules The Alternate value date for the 2032 election on Form 706 page 2 is automated to six months after the date of death unless overridden by an earlier date Items from Schedules A E F G or H can be carried t
56. discount codes payments etc To enter discounts click the Discount Library link or click the Settings menu and then select Discounts Enter the discount code description amount or percentage To activate the discount codes enter the corre sponding discount code on the nv Invoice screen in the Discount Codes section Discounts will be applied to the invoice prices set Invoice Options DETAILED INVOICE prints a detailed list of schedules and forms in the return with the prices set in the SETTINGS Invoice Settings NON DETAILED INVOICE prints only the total price being charged for preparing the return The following options are available as exceptions for individualizing the client invoice Default is DETAILED invoice with line item amounts Do NOT print an invoice Invoice number Print client ID on invoice Suppress invoice number Suppress printing of preparation fee subtotal Date to print on invoice defaults to today s date Print firm e mail address to invoice header under firm name and address Print NON DETAILED invoice gt Print subtotals for Federal State and AdditiGnate Print invoice but with TOTAL amount from Invoice Prices o Print Additional Item amounts Print invoice with TOTAL amount entered here only Enter amount 1 0 Discount Codes Click the Discount Libra ry link Method 1 Enter discount as a percentage xxx or as an exact number to enter the discounts Enter the
57. discount codes in this section iscount Library Sales Tax Enter as a percentage xxx or as an exact number Payment 2 Amount paid Amount paid Payment date nm dd 3 Payment date Payment method Payment method 0 6 0 777777 VtIIIII Invoice 119 Utilities Settings and Workbench Menus 120 This section includes many tools that will decrease key strokes and improve output performance Utilities The following items can be accessed from the Utilities menu You must be in a client s return to access the Utilities menu Utiities i Client Status Ctrl F2 nm Detail Statements FB B Calculator ctrl R Notes Ctrl N Defaults 3 Set Default Ctrl D X Remove Default States amp Pups Ctrl P 4 Split Return P Upload Client to Support Team Print Input Screen Bank Consent to Use or Disclose Tax Retur Info Quick EF Lookup B Client Status Ctrl F2 This function is used for tracking purposes Select the desired option from the drop down box or custom ize your own statuses You may also add comments Detail Statements F6 To make multiple entries for one field use the Detail Statements feature Enter the descriptions and amounts Check the box es to print detail statements with the return have detail statement descriptions update during the update process and print the amount entered in cents versus rounding to the nearest dolla
58. file will be opened with the same SSN or ITIN If you select this option duplicate clients will exist in client selection with the same SSN If you want to delete one of the client files reference delete a client file If the Client File Exists screen does not appear you will proceed to the next screen ELL Enhancing Your Performance 69 Consents Screen STAR Wizard Consents SS Gansents gt Personal Information Dependents gt Dependent EIC Due Diligence gt Taxpayer EIC Due Dillgence W 2 gt Filing Information Consents Check all applicable boxes based on client consent received as indicated on paper copies Consent to use tax return information Oisettlement products RAL RT Odebit Card CBookkeeping Accounting and Payroll Services research for non tax related products and services All of the above When the Consents Screen first opens the boxes will not be checked To quickly check all the boxes indicating the taxpayer has received and con sented to disclose their tax return information and also allow you to use this information to offer the settlement products and or a debit card hit the SPACE BAR one time To uncheck one box use the Shift Tab keys to move you back through the boxes After arriving at the box you wish to uncheck hit the SPACE BAR one time and the check mark will be removed After marking all desired consent boxes hit the ENTER key to proceed to the next scre
59. for the amount of tax exempt income B The remaining questions in this section should be answered No for the Smith Trust which is the default When viewing the output form the Other Information section of Form 1041 should appear as follows Step 17 Schedule I Alternative Minimum Tax A Click I Schedule I in the Forms pane The program carries the neces sary information to Schedule I Adjustments can be entered in part I of Schedule I by entering amounts directly in the fields on the input screen will override the calculated amounts The manual entries are the amounts that carry to Form 1041 Schedule I Lines 1 6 8 14 and 15 are computed automatically Entries in these fields B The program carried the 735 of other taxes to Schedule I line 3 based on the entries on the Form 1041 page 1 input screen C The Part II section is used to calculate the income distribution deduc tion for minimum tax purposes Adjustment amounts in part II are pulled from other portions of the return by the program Entries in these fields will override the calculated amounts A D The Part III and Part IV sections are also computed automatically Therefore no further adjustments to Schedule I are required for the Smith Trust Step 18 Schedule K 1 A In the Forms pane click K1 Benef K 1 B Enter the following information for Alan Smith e Beneficiary s Name Alan Smith e Street Address 136 East Main Street e Zip Code 85308 e S
60. gt If entries were made in the RTN Library or if you entered the bank infor mation previously you can select the applicable Financial Institution Name from the drop down box The Financial Institution Name and Routing Number columns will auto fill Refer to the Uftilities Settings and Workbench Menus section for details on the RTN Library 15 The Routing Number column will auto fill if the routing number related to the Financial Institution was entered previously If necessary enter the Routing Number 16 Enter the Depositor Account Number 17 In the Account Type column click the drop down box and select desired account 146 18 Determine if the client will receive a refund or owe taxes In the DD EFW column click the drop down box and highlight DD for direct deposit EFW for electronic funds withdrawal or none for zero payment refund When the return is reviewed if adjustments need to be made to this column a related audit will appear For EFW use line 1 only Lines 2 and 3 are for Direct Deposit of refund into multiple accounts 19 In the Foreign Bank column from the drop down select Yes or No to indicate whether the refund is going through an account outside of the US 20a DD If the client participates in DD and is depositing their refund into more than one account enter the specific dollar amount for each account in the Amount column 20b EFW If the client participates in EFW the payment amount will defaul
61. have never been viewed Viewed acknowledgments will appear as Tm Acknowledgments that are bold with a highlighted background are new regular text without a highlighted background 5 To view Acknowledgment Reports click the transmission date or tag the acknowledgment s and click View 6 Acknowledgment report s will appear Among the icon selections are Print E mail Report or Save as PDF Click the red X tab to Close 7 Toremove clients from the Acks screen tag the acknowledgment s and click Archive Acknowledgments will be deleted from the screen and saved to an archive directory To view archived acknowledgments click Reports on the button bar The bottom of the Acknowledgment Report includes legends for informa P g tion noted on the report 8 To view Confirmation Letters click the applicable Confirmation Letters link 9 A list of accepted clients will appear Click the client s name or tag the client s and click View Send Clients Acks Database MEUS Search FEY Select to view the client s Confirmation Letter Acks Confirmation Letters Show Alll Clients SSN Type EA Printed Emailed BRADY MICHAEL amp CAROL XXX XX 1003 us Es 10 The Confirmation Letter will appear Print E mail Report or Archived Close by returning to the overview screen Filing Returns Electronically 167 11 Upon your exit a screen will appear asking if y
62. information or tax information by an unauthor ized person or by unauthorized persons 4 your disclosure of your password to or the use of your password by any third party 5 connection to toll charges for using the software obtaining updates for the Software or electronically filing returns or 6 any fees costs or expenses arising out of or relating to trouble shooting or technical support for the Software You agree that the essential pur poses of this agreement can be fulfilled even excluding such damages Indemnification You agree to hold Licensor and its licensors parents affiliates successors assigns officers directors representatives employees and agents and the franchisees of any of them from and against any claim suit loss liability penalty or damages including incidental and consequential damages costs and expenses including reasonable attorneys fees and expenses arising out of your breach of this Agreement 7 10 Export Restrictions The Software is provided solely for lawful purposes and use You shall be solely responsible for and agree to comply with all applicable laws statutes ordinances and other governmental authority however designated Without limiting the foregoing you agree to comply with all U S export laws and applicable export laws of your locality if you are not in the United States and shall not export any Software or other materials provided by Licensor without fir
63. mappings The storage location is called a Data Path Name A default Data Path Name has been set If you prefer to select your own path s open the Client Selection screen Click the Data Path Name drop down box and select a data path If you want to add or edit a data path click the Edit menu and select Data Paths or press Alt S From this screen you can add edit or delete data paths Data Pat New Edit Delete Help Organizers Organizers are a great way to communicate with your clients They alert the client of information to review and bring to the tax interview Organizers can be accessed from the Client Selection screen under the Utilities menu We have also included an option for a blank organizer on the Organizer Options screen 1 Click Clients on the button bar 2 Click the Utilities menu and select Organizers Read the Proforma Organizer Information note and click OK Verify that last year s data path name and folder are correct LL RN Enhancing Your Performance 83 The program will auto detect data paths set up in the 2010 software Tag clients Select last year s data path Select last year s folder Lal Client Organizers 1040 Individual from 10 to 11 File Utilities Help Ep A A Preview Save Print Data Path fe ATaxPreptTY111Datat Find By Qent ID Stephen Robert Michael JACK FLOYD John FRANK TODD IFFEREV Johnson Brady WILLIAMSON wooD Doe T
64. nea FEC ora descendant of any of them E v taxpayers dependent ly 1i Did the child live with the taxpayer in the United States sr half of the year pi 13a Could any other person check Yes on lines 9 through 11 for the child B b What is the child s relationship to the other person s c Ifthe tie breaker rules apply would the child be treated as the taxpayer s qualifying child v Does the child have an SSN that allows him her to work or is valid for EIC purposes The id must have a valid SSN for employment If 14 Not valid for Employment is printed on the card and the number was issued solely to apply for or receive a federally funded benefit the child is not iei eligible for EIC Hit Tab to move to the next required field on the Dependent EIC Due Diligence screen To answer the questions on each dependent use the Y or N keys You can also use the mouse to navigate through the drop down If the answers to the EIC Due Diligence questions do not meet the IRS requirements the depen dent will not qualify for EIC Earned Income Credit The word No will appear in the Claim EIC column If responses to the due diligence ques tions meet the IRS requirements the word Yes will appear in the Claim EIC column The dependents will appear in the grid in ascending age order from young est to oldest To navigate in the grid use the F11 and F12 keys to select dependents To
65. on the federal calcula ions To change the AMT calculations uncheck the AMT Basis Fed Basis checkbox B Force Options allows you to handle special situations such as Indian Reservation or Gulf Opportunity zone calculations E EER 3 C Business Use a x LONE Percent if less than New Spallow Cale 179 lose P 100 will reduce All Assets Color Key General Vehicle Disposition Form 8829 1 d estas Addition Pe Sah a AUTO Force Options N A the ass et S epre Garage Addition Type Bhicles gt Business Use Percent roo fowomee EE VUE ka 7E clable basis If Sch A Points AMT Basis Do You Have Evidence of Business EI POINTS State Depreciation Feder Fed Basis P Use Claimed a mile age 1S entered E Sch C 1 Cost x 20000 Is Evidence Written iv n SESAT areni sec tze Section 179 Property 7 on the Vehicle tab m pikes Prior Sec 179 179 Qualified Real Property x s amo Toyota Pus ERROR HOG 1038 cuates tor Specie Depreciation p the Business Use AUTO Prior Spec Allow Alowance Backhoe Loader Land Oe ME Percent is automat Backhos Loader METRE Amortization Code Segtfon J call icul Bobcat ARETE Amortization Periga d Bobcat Utility Trail Dait 16008 70000 Optional N 1ca y ca cu ate Color Laser Printer St m Estimating software Method MSYR z B Heros caer Pet 5 Tez The Evid
66. other removable device B Delete Alt D Deletes the client file from the Client Selection screen and places them in the Client Selection Recycle Bin E Move Alt M Moves the client file to another path or folder location B EF Status Ctrl F5 Updates the E File and Bank columns in Client Selection with the status for each e filed and bank return Reference the Filing Returns Electronically section To quickly view EF Bank Summary information for a client right click on a client in Client Selection and select Quick EF Lookup Verify SSN and click OK B PUPs Alt G Allows you to select additional states for per unit processing B Download Downloads client files that have been previously uploaded to another office or account bin You must enter the filename assigned to the return in order to download it Reference the Download Clients section B Upload Uploads one or more client files to Technical Support or to another office or account bin Reference the Upload Clients section B Proforma Alt P Updates prior year client files to the current year Reference the Proforma Clients section To perform an action on a client you must first tag at least one client Menus Client Selection Individual B File File Edit View Utilities Help e New Client Alt N Creates a new client file Enter the informa tion on this screen and it will carry to the General Informatio
67. passwords click Security then Edit Login 9 To set up additional Users click the Security link gt This link will only appear if you are logged in as the Administrator 160 10 The Manage User Names screen will appear Click to add new users lick to delete a user Click to edit user login nformation 11 Click the Add button to set up additional User Logins 12 Enter the user s First Name Last Name and User Name The Password will automatically be set as password until the user changes it the first time they log into the E File Center 13 Tag the areas of the E File Center the user will be able to access The default is access to all areas 14 Click Submit when complete Please enter the User s first and last name First Name Last Name User Name must be at least 6 characters but cannot exceed 20 characters Letters A Z Numbers 0 9 and the underscore _ character can be used Create a user name and password User Name Max 20 characters Default password of password will be given to the new user account The owner of the user account will be prompted to create a new username password of their own upon logging in Please select the areas of the E File Center this login will have access to V Send Clients v Acknowledgements Bank V Database v Reports Archive v Bank Enrollment vi MOM o ENS 15 A screen will appear stati
68. return to be filed by electronic means EL Filing Returns Electronically 1 89 190 PA If a third party preparer has prepared more than 50 PA Corporate returns reports within the last calendar year that person is required to file them electronically Once the preparer has filed his her returns electronical ly they must continue to file PA Corporate returns electronically regardless even if the number of PA Corporate returns prepared decreases RI Preparers who prepared more than 100 individual income tax returns in the previous tax filing season are required to e file all individual returns The tax administrator won t require e filing by a paid preparer s client who specifically requests that a return be filed on paper SC Preparers who prepare more than 100 individual income tax returns in the previous tax filing season are required to electronically file all indi vidual income tax returns UT A tax return preparer or two or more tax return preparers affiliated together in the same establishment who prepare 101 or more individual income tax returns must submit all individual income tax returns electroni cally or use 2D barcode technology Exceptions Taxpayers who elect out of electronic filing or 2D barcode technology returns that include a schedule that cannot be electronically filed or by 2D barcode and undue hardship on the tax return preparer VA Preparers who prepare more than 50 individual income ta
69. return to the due diligence questions for a particular depen dent highlight the correct dependent by using the F11 or F12 keys and edit the desired answer If a dependent passes the due diligence questions but the taxpayer chooses not to claim the dependent for EIC purposes simply click the Do not Claim EIC button in the Dependent List at the top of the screen for the applicable dependent After three 3 dependents have passed the EIC due diligence questions and the taxpayer has decided to claim them for EIC purposes if the word Yes appears three times in the Claim EIC column you will no longer be prompted to answer EIC due diligence questions for any further dependents as this is the maximum number of dependents allowed for EIC in 2010 Hit Alt N to proceed to the next screen when all entries are complete Hit Alt S to save your entries Enhancing Your Performance 73 Taxpayer EIC Due Diligence Screen STaR Wizard m t3 Taxpayer EIC Due Diligence formation Dependents Dependent EIC Due Diligence Taxpayer EIC Due Diligence gt W 2 Filing Information EIC Due Diligence Questions Note Questions must be answered for the Schedule EIC to be calculated on behalf ofthe Taxpayer PART I All Taxpayers YIN 3 ant the ber ria and m err if fna ien have an SSN that allows him her to work An SSN is not valid if Not Valid for Employment is printed on the car unt solely to apply for or races a
70. selecting the return in Send Clients To print a transmission report for all returns transmitted to the Filing Center from the Review screen log into the E File Center Select Reports Click Transmissions Enter desired beginning and ending date State Electronic Filing The following states can be e filed 1040 AL AR AZ CA CO CT DC DE GA HI IA ID IL IN KS KY LA MA MBT MD ME MI MN MO MS MT NC ND NE NJ NM NY OH OK OR PA PR RI SC UT VA VT WI and WV 1041 MA MBT NY 1065 AL CA CO GA ID KS MA MD ME MBT MD MI MN MS MT ND NY PA UT WI WI Est Pmts WV 150 1120 AL CA CO FL GA ID IL KS LA MA MBT MD ME MI MN MO MS MT ND NJ NY OR PA RI SC UT WI WI Est Pmts WV 1120S AL CA CO FL GA ID KS LA MA MBT MD ME MI MN MO MS MT ND NJ NY OR PA RI SC UT WI WI Est Pmts WV State programming is contingent on release of specifications by the states Therefore this list is subject to change you through Alerts as plans are finalized To manually check this Implementation and start dates vary by state We will pass information to information click the Help menu and select Release Dates You can e file one or more state returns for each taxpayer You can also e file most state returns with or without the federal return There are three types of state e file returns State Return Types Piggyback PB Piggyback state
71. separate returns for both the taxpayer and spouse The married filing joint return is retained Amounts for married filing separate returns are allocated based on entries made in the applicable T S J fields The popup window notes the names and location for the split returns created as well as the forms and schedules involved in the split o Utilities Settings and Workbench Menus 121 B Upload Client to Support Team This option gives you the ability to upload a client file with a note to Support from within the client s tax return If you are having trouble with a client you can upload the client file and ask our Support staff to help answer your question This feature will not automatically notify us that you have uploaded a file Please e mail or call Support after uploading the file B Print Input Screen This option prints an exact replica of the client data entered on the input screen B Bank Consent to Use or Disclose Tax Return Info This option allows the tax preparer to obtain the taxpayer s written consent to use tax return information for purposes other than preparing the tax return B Quick EF Lookup This utility pops up a screen allowing you to quickly view client e file and financial product information Settings The following items can be accessed from the Settings menu Settings Control Data gt EF Settings V Printer amp Delivery Settings Distribution Sets amp Preparers Common Forms Cu
72. support to alert them that a client file has been uploaded must call or e mail support to alert them of the uploaded file gt Support is not automatically alerted when you upload a client file You 1 Click the Upload button or click the Utilities menu and select Upload Client to Support Team ELL Internet Service Provider ISP 135 136 2 3 If you wish to attach a note to the return click Yes Type the note and click Send To upload the return without a note click No A security statement will appear This statement is to inform you that during the upload process certain personal information will be altered to protect the client We highly recommend that you do not click the Opt Out button unless directed by a Technical Support agent Clicking the Opt Out button allows the client file to be uploaded without altering or masking the client s information Click Close or the Opt Out button The file will be uploaded to support A screen will appear asking you to contact Support to alert them that a file was uploaded You can do this by phone or e mail Click OK t3 Unless directed by a support technician support is unaware that you are uploading these return s Please notify the support team by phone or email Upload client to support from Client Selection This is a great feature to use if you want to upload multiple clients to support or upload a client file while not in a client s re
73. taskbar and select Run Type D Setup exe on the line labeled Open Click Ok If your CD ROM drive uses a letter other than D substitute that letter for D As the setup starts it will check your computer for prerequisites The software requires Microsoft s MSXML 6 0 Service Pack 1 Microsoft Visual C 2010 and Net Framework 4 0 Full If the prerequisites have not been installed the setup will attempt to download them from Microsoft s website Run i Type the name of a program folder document or Internet resource and Windows will open it For you Open D Setup exe v allow these prerequisites to be downloaded If you cannot download them from the Setup please download and install them manually from Microsoft s website gt Some firewall applications or appliances may need to be configured to Step 5 The Welcome screen will open Review the End User License Agreement EULA by clicking the Show EULA button You can print the License Agreement for future reference by clicking the Print button 2 5 o 00 CCv Installation 7 im Eg Welcome Installation of this software indicates acceptance of the End User License Agreement EULA Click below to view the EULA Install the 2011 software to TaxPrepp TY11 in CN Accept amp Install gt Cancel Step 6 By default the software will install to the C drive on your machine C
74. the three EF tabs will be included in the e file return sent to the IRS Defaults Select this option to view detail on defaults selected You can also delete individual or multiple defaults or copy default settings to other users EF and Bank defaults can be accessed by selecting Settings and then EF Settings Set Default Ctrl D This function allows you to set a default for the highlighted field your cursor is in Enter the default information Click the Utilities menu and select Set Default or press Ctrl D The default is now set Once the default is set it affects every subsequent return entered in that system Entries made in default fields will override any default settings Remove Default This function allows you to remove a default set in the highlighted field your cursor is in Select the desired field and remove the contents Click the Utilities menu then select Remove Default or press Ctrl D The previously set default is now removed The default is removed for all returns you process from now on States amp Pups Ctrl P If you have purchased a limited use package and need to process a state or system that has not been purchased an authoriza tion code must be obtained in order to process the return Use this function from within the client s return to retrieve a PUP code via the Internet Split Return This option allows you to split a married filing joint return automatically creating married filing
75. the Notes fields Type in an appropriate explanation such as Publication 521 page 7 explains that meal expenses related to moving cannot be deducted Click Close to exit the Notes screen Step 17 State Instructions Because Richard and Stephanie lived in California for part of the year they will need to file a California tax return with their federal and Utah tax returns A Click the State button on the button bar It should have the Utah state flag on it since Utah was entered as the resident state on the federal General Information screen Click the States button located just above the Forms pane Notice that Utah 1s already entered as the resident state Select CA from the drop down box as the 2nd state Click the Close button to continue Click the W on the state drop down box located above the Forms pane Select CA from the list of states On the California General Information screen check the box to Prepare Form 540NR Part Year Nonresident In the Forms pane click NRAI CA NR Pg 1 1040 Sample Return 49 50 On line 3 enter UT for both the taxpayer and spouse as the New state of residence Enter 06 01 2011 as the Date of move for both Richard and Stephanie On Zine 5 enter 151 days for both the taxpayer and the spouse On lines 7 8 and 9 the Jones family lived in California from 01 01 2010 to 06 01 2011 They entered California on 01 01 2010 and left 06 01 2011 Enter 303 on ine 8 Co
76. the corporate excise including security corporations with more than 100 000 in gross receipts or sales must file returns and tax payments using electronic means Exception financial insti tutions insurance companies and public utilities 1120 Extension Corporate Extension requests and accompanying payments must be filed electronically Any corporation with more than 100 000 in gross receipts or sales must e file In addition any corporation making a payment of 5 000 or more with its corporate excise extension must e file the request and make the payment by electronic means Requests and pay ments can be made through the DOR s website Reference MA Mandate TIR04 30 on the MA DOR website at www dor state ma us MD The threshold for TY2011 and beyond is 100 Maryland individual returns There is a taxpayer opt out provision and the preparer can apply for a hardship waiver by writing to the Maryland Comptroller s office A penalty may be imposed of 50 per return with a maximum penalty for one year of 500 777a s Filing Returns Electronically 187 ME For returns filed in calendar year 2011 or any subsequent calendar year a tax return preparer must file by electronic data submission all origi nal Maine tax returns for individual income tax that are eligible for elec tronic filing except 1 When for the previous calendar year the tax return preparer prepared 10 or fewer original Maine tax retu
77. the vertical and or horizontal alignment drop down boxes make the applicable selection Click Save Settings 4 Repeat steps 2 and 3 until alignment is correct system 1040 iw Bonk Check Angnment Vertical Alignment Move 1 2 inch up Move 1 2 nth up Horizontal Alignment Move 1 4 inch right Move 1 4 Ach right ina in Print Checks When the bank releases the check print records they will automatically appear in the E File Center Click Bank and the Check to access the available checks s 1 m Click to print the checks Bank Checks Tag the checks to be printed Bank SBTPG IN tip Select multiple rows by pressing and holding the Ctrl key while clicking anywhere within the desired rows nane sn em once eant md BUR TIM XXX XX 8109 099001 FED 1 cH 1500 00 BUR TIM J00CXX 8109 099001 FED 1 cH 2304 60 FRIDAY FIVE J00 XX 8518 860065 FED 1 cH 3210 06 FRIDAY FOUR XXX XX 4568 860065 FED cH 2863 56 1 FRIDAY FOUR XXX XX 4568 860065 FED 2 cH 286356 FRIDAY THREE XXX XX 9846 860065 FED 1 cH 286356 fem 1 to 6 of 6 LLL Financial Products 193 Click EF Ctr on the button bar Enter your User Name and Password Click Log In Verify that 1040 has been selected from the System drop down box Click the Bank button then click Checks Tag the check s that are ready to print Click Print O0 hh WN Enter the first check number in the sequence an
78. there are incomplete fields red audits will be created when you Review the return preventing you from electronically filing the return Enhancing Your Performance 71 72 Dependents Screen CU STaR Wizard Bole Dependents SV Consents gt Personal Information gt Dependents gt Dependent EIC Due Diligence gt Taxpayer EIC Due Diligence gt W 2 Filing Information Jonas Winter 22722 1222 05 23 2007 List Months Lived in the Home 12 Provider s Address ZIP Code city State When this screen opens the Dependent s last name will be auto filled You will need to over write this if it differs from that of the Taxpayer When you tab to the Relationship entry box a drop down box showing a list of relationships will appear Select the desired relationship description by entering the first letter of the relationship desired For example type S for Son or D for Daughter The Months field is used to indicate the number of months the dependent lived in the home with the Taxpayer This field will accept the numbers 0 thru 12 also the alpha numeric characters of CN to indicate the dependent is living in Canada and MX to indicate the dependent is living in Mexico The Status box defaults to 0 Claimed There are ten 10 status selections available Select a status by typing the number of that status If the depende
79. to customize fonts and borders for the invoice Click to copy the complete grid to paste into spreadsheets and other documents I I The Invoice feature allows entry of individual billing amounts for each form schedule and various line items Once the invoice settings have been entered and saved the defaults will automatically carry when a return is processed Click the Settings menu and select Invoice Settings to access the nvoice screen Forms and Invoice Settings for all clients Enter the amount to bill per Description Suppress Amount Per Iter form or schedule applicable _ de i i040 1041 1065 1120 11208 706 709 990 5500 ine item on a specific m I 0 00 0 00 4 5 Forma 1040EZ amp Forma 1040EZ P gina 2 7 Form 10404 0 00 0 00 8 Fom 10408 Page 2 0 00 Eg DRE E Check to suppress printing the item 10 Forma 10404 P gina 2 00 on the invoice Form 1040 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 11 12 Form 1040 Page 2 13 Forma 1040 14 Forma 1040 P gina 2 15 Form 1040 55 18 Form 1040 58 Page 2 _17_ Form 1040 58 Page 3 18 Form 1040 58 Page 4 19 Form 1040 PR 20 Form 1040 PR Page 2 21 Form 1040 PR Page 3 Form 1040 PR Page 4 Form 1040NR Form 1040NR Page 2 Form 1040NR Page 3 im 1040NR Page 4 Click to save the invoice settings
80. used the link on the General Information screen which took us to the has links directly to the Basic entry grids for interest and dividends It also has input fields if the grids are not necessary Step 10 Schedule D Richard and Stephanie sold some stock during the year Let s enter the capi tal gain loss now gt Schedule B input screen Alternatively the General Information screen A On the General Information screen in the Income section click on the Schedule D link on ine 13 This will take you to the Schedule D Capital Gains and Losses input screen and will automatically open the Schedule D Sales of Short Term and Long Term Capital Assets entry grid B Enter the Jones information as follows They sold 100 shares of Microsoft stock The stock was purchased on the open market on 10 08 2004 He sold them on 7 11 2011 for 2 588 The cost or basis was 2 230 Commissions were included They sold 100 shares of Yahoo stock The stock was purchased on the open market on 11 12 2003 and sold on 7 11 2011 for 4 074 The cost or basis was 1 359 The state will default to the state entered on the General Information 1 screen The Type column allows for handling advanced transactions such T as Wash Sales The entry grid has a separate field for shares sold You can preserve the name of the company in the auto fill library without the specific share I amounts The program will sort all of the entries into sh
81. using sheets of labels that have been partially used Click to move the printing left or right Click to move the printing Im i a 7 or down Click to view how the Proper case name address Font label will appear when Partial Preview Pri Cancel p rin ted m Click to toggle between Custom and Regular tt of copies modes Use Custom mode to create and save labels for your specific needs Enhancing Your Performance 109 Slip Sheets and Envelopes Select the type of slip sheet envelope Select the format for the slip sheet envelope Click to edit the address placement on the slip sheet envelope gt If you are using window envelopes or folders to communicate with your cli ents use slip sheets for a professional look There are two ways to print slip sheets To customize slip sheets click the Mgmt button and select Slip Sheets Env or while in a client s return select PO Options from the Forms pane If there are no slip sheets on file the Add Slip Sheet box will automati cally appear From the slip sheets drop down box select one of the defaults or select Add New and create your own If you select Add New name the slip sheet Select to print it in portrait or landscape select the type of label and if you want a slip sheet for the Federal State s or Both returns Click OK Add a border change the font and drag the From and To addresses where you would like th
82. will appear in the Print Option drop down box Click the Click to print El 1040Works 2011 testing 1040 individual Loe Elle Edit View Forms Utilities Settings Workbench Installations Help P o w amp Ls amp A 9 EF Ctr Mgmt New Clients Fed State D Audits Upload Status Close Ark Control Alerts Update L m Nomao x Page F7 Stes adeo se sl watermark E w Tag the desired forms to print optional Select the print option from the drop down box The Adv button allows you to print specific print sets and save the return Cap Gain Tax Whsht CTC Wksht Pa 1 CTC Wksht Pa 2 Auto Exp Wksht ST Auto Exp Whsht 2 Auto Exp Whsht 3 SchD AMT Pg 1040WORKS FINAL CD LEVEL 1 1265 SPORTSPLEX DR KAYSVILLE UT 84037 000 000 0000 September 01 2011 JACK and WIONA WILLIAMSON 57 YOUR LANE SAN JUAN BAUTISTA CA 95045 Dear JACK and WIONA Enclosed is a copy of your 2011 federal return Form 1040 You have elected to file this return electronically Therefore you do not need to siga and mail this retum Please review the return and retain this copy for your records Your federal return shows a refund of 7 560 00 You will receive a check from the IRS for 7 560 00 the amount of your refund Batch Process Printing Enter the watermark to print on the tagged forms Sometimes you will want to
83. will be prompted to enter the username and password for the database If you are unsure of the database login credentials or not sure which database to connect to click Install a new Database Instance The program will then install a new database instance Once the database has been installed or an existing database has been con figured click Next and continue to Step 8 Installation 11 12 Start Page Network Setup databases The 2011 program can use one of these existing databases Click Test Connection to make sure you can Database You have chosen to setup the 2011 program on a network An initial scan of your network detected the following access the selected database A user name and password or windows authentication may be required to access some databases Please check with your database administrator for further instruction on accessing these data bases If you do not have access to one of these databases click the Install a New Database Instance Install a new Database instance Or select an existing database instance Database Name Version siens 80094 a Tex connacion TAXPREP 8 00 194 Tes Gonnacion 11BEB6 TAXPREPOS 9 00 3042 00 Tes Connection 11BEB6 ARKSQL 8 00 194 Test Connacion 11BEB6 TAXPREPO7 9 00 3042 00 v gt Some recommendations on databases h A If you have an existing SQL
84. your office to have their 2011 tax returns prepared They are also interested in some financial planning services Let s quickly prepare the return for the Jones family and learn about some of the features in the program Step 1 Start Up A Double click the program icon on your desktop B The program may automatically open to the Client Selection screen If not click the Clients button located on the button bar Step 2 Data Path Name A Ifyou prefer to use the default Data Path Name My Tax Files skip to step 3 A Data Path is the file location where client files are stored on your hard drive network drive or removable media drive flash drive B Data Paths may be customized to store client files in any location you want 1l If you want to change the indicated Data Path Name Location click Edit on the menu bar and select Data Paths from the list 2 To create a new data path click New Type the desired name in the Name column Choose the ocation for the data path by clicking the browse button Step 3 Folder Selection A Create a new folder by clicking Edit on the menu bar and selecting New Folder from the list B Type Tutorial in the New Folder Name field and click OK Step 4 Client Selection A A database will maintain a list of clients already in your folder B Since the Jones return is new click the New Client button Step 5 New Client A The New Client screen will appear enabling you to initialize
85. 0 Rejects o Bank o Multiple Office Management MOM The Multiple Office Management MOM utility allows tax preparation firms with multiple locations to manage and view all or limited offices e file and bank activity This utility allows you to establish tier structures Designate a parent child and other groups as applicable From the E File Center Overview screen click MOM under the Tools menu Welcome LQ15017 LQ150 ATLE Office Name Standard Summary Overview for Office amp Office Tree Account LQ15017 Options tions Reporting Manage O Action Items Current Status Daily Activities Current Rejects In Send Clients All Federal Returns Checks Ready to Print At Filing Center All State Returns At the IRS 6 Accepted RALs At the State 6 Accepted RTs Accepted State RTs LL Filing Returns Electronically 173 1 Home Click to return to the MOM home page 2 Office Views Allows you to view information for all offices office trees add and manage office groups and search for a specific office 3 Reporting Allows you to view reports for office trees full listings or organization 4 Exit MOM Exits the MOM Utility and returns you to the E File Center 5 Account Displays office account number assigned by the software Click Manage to display screen allowing you to view and manage office detail for applicable account number
86. 00 Taxes and licenses 000 005 2 500 Interest oos UU Ce Ue UU 1 400 Depreciation ess cs iarere seser Cs eese 320 Other deductions 005 5 000 Schedule K Guaranteed payments to partners 25 000 LLL 1065 Sample Return 233 234 C In the Forms Pane click 2YR2 2Yr Comp P2 D Enter the following amount for the prior year Self Employment Net earnings from self employment 32 320 Step 20 State Instructions The AbleBaker Bookstore also operates a store in Washington D C The partnership is required to file a Washington D C Partnership Return of Income A Click the State button on the button bar It should have the Maryland State flag on it since Maryland was entered as the incorporation state on the Federal General Information input screen B Click the States button C Notice that Maryland is already entered as the resident organization or incorporation state D Select DC from the drop down box as the 2nd state Then click the Close button E Click the W on the State drop down box located on the Forms Pane Select DC from the list of states F The state information will carry directly from the federal inputs If you would like to override any values you may do so now Step 21 Review the Return Now let s review the return The program will produce Form 1065 pages 1 through 5 Schedules K 1 for Frank and Susan a Two Year Comparison Financial Statements Fo
87. 11 2 21 09 PM 8 2011 2 21 09 PM At the IRS Approved FRIDAY TWO XXX XX 3231 US No 1 5 201122109 PM 1 3 2011 2 21 09 PM AttheIRS Approved Lu H a ahna gt pj pagestee 2 7 27 items in 3 pages 2 Click the client name to view the detailed information 3 The following screen will appear Select Bank to view the detailed bank informati Click various tabs to display detail Disbursement Reconciliation and Bank Summary information 4 nd Chems Acks Database Bank Reports Database Listing All Bank Products Details Client Information cient DAVIS HARRY amp SARAH SSN 100041303 Davis SARAH 8S 3008206 1363 View EFile 74132 8 NORTH CIRCLE Columbus OH 43240 01860 7878 goDebe 7878 Filing Status MFJ Federal Summary E File Twe US Bank Type Republic 120000 AM MST Status A Amount 8 967 m TIBI2O44 12 41 32 E rea OH Bank Type Republic jon TBI2041 12 41 33 EF Fee Prep Fee Government Funding Type Requested Received Funding Mo records to display Disbursements Type Amount Bank Summary List Cheeks Card Mo records to display Check Cleared Date Mo records to display History Details From the drop down box select Bank to view bank details 5 Click Reconciliation while viewing the client s detail bank information
88. 148 149 152 153 155 165 168 177 181 183 Form 8888 145 146 Funding 178 200 History 164 200 Imperfect Returns 169 IRS E Help Number 176 IRS Service Center 176 Key E file Information 34 144 Login 158 163 165 166 Multiple Office Management 164 173 174 Modernized E File 177 Not Transmitted 94 172 Notes 155 Originator ERO 148 152 154 177 181 183 196 Overview 152 159 161 163 173 177 184 Index 941 Partnership 1065 182 185 Password 158 166 192 194 220 Phone Number 71 93 116 147 176 181 183 Piggyback 144 145 151 166 169 178 PIN Personal Identification Number 75 144 148 152 154 Practitioner PIN 152 154 181 184 Preparing Return 142 143 Refresh EF Status 64 157 Refund 145 146 156 178 179 Regulatory 156 Rejects 142 144 164 165 168 Remove 121 165 167 Returns 55 62 64 94 122 141 144 151 152 156 164 165 168 169 184 S Corporation 1120S 142 151 179 183 185 Security 159 165 Self Select PIN 148 152 154 Send 55 136 141 150 151 156 157 163 165 168 170 177 183 192 Settings See Control or EF and Bank Settings Signature Date 74 SSNs EINs Masked 69 165 State 142 144 150 153 152 163 166 169 178 State Mandates 237 242 State Only 194 195 200 Status 62 64 65 72 157 168 197 199 220 Test 170 195 202 Transmitting 142 150 165 181 183 219 Verify Vital Data 34 Website 142 154 165 173
89. 2 Serial Number Enter a Master Password and a security question to continue the setup of Security Firm Data Page 1 E Master Password 6 to 20 characters Firm Data Page 2 Confirm Master Password Security Select a question or enter your own in case you forget the Master Password What is your favorite food Im Security Page 2 Provide the answer NOTE The Master Password is case sensitive The Master Password will be used for the current user s password as well This can be changed on the next screen Additional security features can be configured by selecting Security from the Workbench menu LL Installation 15 16 Step 13 Your User Name should appear Your password will be the same as the Master password entered in Step 12 You may enter more users and passwords by clicking Add User or you may delete users by clicking Delete Once all users have been created click Next to continue Start Page Serial Number Firm Data Page 1 Firm Data Page 2 Security Security Page 2 Security Page 3 Security Page 3 Configure users and passwords below More user options can be configured later by selecting Security from the Workbench menu User Name Password Note The current user s name and password have been defaulted to the new Master Password set on the prior screen You can change it here by enterin
90. 5 dig its All zeros are not permitted The taxpayer and spouse PINs can be the same ERO PIN The ERO must select a PIN This PIN must remain constant for all returns submitted at one location If the ERO moves from one office to another a unique PIN must be used for each office gt To default the taxpayer spouse and ERO PINs while in each field enter the 5 digit number Press Ctrl D to set the default Click OK The PIN numbers will only be activated if a signature date is entered PIN Input Verification Do not check the Taxpayer s entered PIN s box unless the taxpayers touched your keyboard and entered their own PINs The default is Preparer ERO entered Taxpayer s PIN s Signature Date A Signature Date noting when the taxpayer PIN was entered is required If taxpayer and spouse PINs were entered on different dates use the taxpayer date Touch the letter T while in this field to auto fill the current date PIN Exclusions Primary taxpayers under age 16 who have never filed Secondary taxpayers under age 16 who did not file the immediate prior year Legal or illegal aliens with SSNs not valid for employment Citizenship Code C or D Form 8879 IRS E File Signature Authorization Form Taxpayers can enter their own PINs or the taxpayer and or spouse can authorize the ERO to enter their PINs for them It is not acceptable for a taxpayer to enter the PIN of a spouse who is not present Form 8879 must be s
91. 70 174 Slip Sheets 60 110 Soft Fonts 2 128 Sort 31 32 43 60 61 65 170 171 199 Custom Sort 32 65 Asset Tracker 97 Split Return 79 81 121 Stand Alone Computer 10 18 143 Standard Filing Instruction Letter 113 114 STaR see Simple Tax Return Wizard States 49 50 64 114 121 State EF 144 145 152 177 City 203 207 Electronic Filing 150 152 163 164 169 174 177 178 ES Payments 207 ES Vouchers 207 Form Filler 206 Forms 212 Instructions 49 234 Multiple 152 205 Ohio Cities 212 PUP Codes 62 64 121 139 140 202 203 205 W 2 115 212 W 2G 212 244 1099 R 212 1099 Misc 212 1099 G 212 Status Add 90 Auto 90 Custom 60 89 90 95 Delete 89 Group 93 Status Bar 22 24 27 Status Drawer 95 Status for Group 65 Summary Pane 24 27 Super Grid 31 Suppress Client Numbering 31 Support Email Inside Cover IRS 176 181 183 Technical Inside Cover Tool 124 Upload 23 62 64 122 135 136 System Installation 7 21 System Requirements 1 2 System Updates 60 Custom Letters 114 Employer Library 60 Invoice 60 Libraries 60 Preparer Data 60 RTN Library 60 System Files 60 T Table of Contents v x Tag 26 30 60 109 TaxPlanner 239 Templates 114 Test Communications 135 202 Thumb Drives see Removable Media Transmitting Returns 165 166 Tutorial see Sample Return Two Year Comparison 108 217 U Z Uninstall 57 Untag 26 30 97 127 149 Updates 18 21 Automatically 18 Auto Scheduler 19 Con
92. 91 Sonora orm Ye 14 other D 2 1040P92 Description _ Amount Cleray EB W2 WageW2 Clergy Enter the Two letter state code B GUNNER INC ye Lixa D FEC Foreign W2 Suppress D W7 App TIN Clergy SE Yes G Gambling W2 Michigan and Ohio Cities Only use the Michigan Ohio ST Stete Employer ID t State Wages St Tax Wiheld Local 41000 1500 ome grid below LocalTax Localty m Click to access the Ohio City Income Grid 10994 Foreclosure 1099C Cancel Debt 1099G Govt Pmts 099M Misc Income DoODOoOO 1099R Pensions SSA Soc Sec Ben RRBR RR Pensions CLGY Clergy DSTR Disaster ichigan Ohio City Income E DOOOODOO Ohio City income should be entered on the Ohio City Income grid and not on the state wages grid See the Form Helps for further instructions 206 gt gt 1099 R This screen allows for state specific exclusions of pension income based on the type of income The program will automatically list any applicable pension types in the drop down box based on the state that is entered in the State input field The following states have additional Types to select AZ HI KS LA ME MA MI NC NJ NY OK RI and WI Enter the two letter state code Select the type of income for state exclusions Multiple ES Consult the Form Helps F1 to view the city locality codes on 1040 W 2 inputs For states with r
93. Analysis of Net Income Loss line 1 LLL 1065 Sample Return 229 230 G H On line 1 Net income loss per books of 49 758 was computed based on the above amounts Click Peek to return to the input screen Step 15 1065 page 5 Schedule M 2 A B G Scroll below Schedule M 1 to locate Schedule M 2 The 27 550 for the balance at the beginning of the year for the Partners Capital Accounts was entered in Step 13 This amount will carry to Schedule L In the subsequent year it is not necessary to enter this amount because it will be updated and reflect the prior year s end ing balance amount Click Peek to view the output form On line 3 Net income loss per books of 49 758 carried automatically from Schedule M 1 line 1 On line 6 Distributions of 52 880 carried automatically from Schedule K line 19a On line 9 Balance at end of year of 24 428 was computed based on the above amounts Click Federal to return to the input screen Step 16 Schedule K 1 Frank W Able We need to enter Frank s K 1 information A B Iromnmuoson In the Forms pane click on K1 Partner K 1 Notice the Prior Next and 1 of 1 buttons at the top of the input screen This screen is set up as a multiple input screen where up to 10 000 K 1s may be entered Enter Frank W Able as the Partner s name top line Enter Frank s Street Address as 10 Green Street Enter the ZIP code as 20904 Select Silver Spri
94. CientiD LastName Fist Name SSN Refund Delete 00000 SAMPLE 04 WILLIAMSON JACK XXXXM4545 218 Winter Ciis XXX 6 89 300 Secured Clients ent Winter Cis amp Br 1of2 B Clients a database will maintain a list of clients that have been reviewed or updated B Federal Info view a summary of the client s federal return including forms schedules and dollar amounts B State Info view a summary of the client s state return including dollar amounts resident status and the desired refund receipt method such as bank deposit or paper check You may want to delete a client from the Management screen If you delete gt a client the client file will remain in Client Selection but information in Management will be lost You must review the client again to have it reappear in Management 92 Management Reports Reports are a must in every office The program has made your work easy Click the Mgmt button On the Management screen click Reports There are two report categories available Each category offers multiple reports depending on the system selected Select the desired report category and click Next Client Reports rj Choose category of report General client reports C Marked for E File not Transmitted B Next gt Cancel Help B General client reports Production Summary Tracks inhouse office production Stat
95. Click Office Groups and then Management Filing Returns Electronically 175 Establishing a Parent or Child B Parent By default all offices and newly created accounts in an organization point to the master account office as the Parent Offices can be moved under other accounts as Child accounts Therefore an office becomes a parent inherently by adding offices under it using the Add Child Office s feature m Child To add a child ren select the Office Views tab Click Full Office Listing or Office Tree Locate desired parent office and click Add Child Office s Tag desired Child Offices and click Add 1040 IRS E File 176 E File Service Centers The IRS has five 1040 e file processing centers Andover Austin Fresno Kansas City and Philadelphia For you the user service center assignments will be handled through the program 1040 e file processing and Help Desk phone support will be handled at two centers Andover will handle Andover and Kansas City e files Austin will handle Austin Fresno and Philadelphia e files Exclusions All e file returns containing Form 2555 will be e filed and The software supports e filing for Form 2555 Foreign Earned Income handled through the Austin center IRS E Help Phone Number The IRS has one centralized toll free number for e file help The e help number is menu driven Proceed through appropriate prompts in order to speak to the a
96. Federal Paper Filing sample2 Footer t3 TimesNewFionan ii Bi z u f l x 8 t aklo 300 108 1065 1120 11208 z 79 seo so Your business is appreciated Please PRETEL call if you have any questions Sincerely 1 3m l PREPNM T ting OK Za If you accessed the Custom Letters utility from within the client s return you will return to the letter input screen To access the letter you have just created you must leave the letter screen and then return to the letter screen Select GI General Information or any other form from the Forms pane Reselect LTR Instr Ltr to return to the letter screen 116 7b If you accessed the Custom Letters utility outside of the client s return click the Clients button highlight a client and click Open Select LTR Instr Ltr from the Forms pane 8 To print Custom Letters you must check the Print Custom Letter box 9 Note that TEMPLATE NO LETTER NO EXTRA SECTION and NO OTHER LETTER are defaults for the Custom Letter categories The Template letter will print where TEMPLATE is noted To include other letters click the drop down box and select the desired letter For our example click the drop down box for Federal Paper Filing and select the Sample letter 10 When you click the Review button and the return is processed the let ters selected will be listed as part of the return 11 Tag the l
97. HOMPSON ANDERSON BAIL ARN SAMPLE 03 SAMPLE 04 SAMPLE 05 SAMPLE 06 SAMPLE 07 SAMPLE 09 AMBIEN Total Clients 0 SP First Name Emily Deborah Carol WIONA MIRIAM YANYA MARTHA JANICE 1 AD7ANNE Sorted by Client ID oe fr 3 Click the Utilities menu and select Options Select the desired Select the slip sheet format Check to print organizers for clients with the Organizer option selected in 2010 Option to print the SSN Check to print organizers in duplex format both sides Select the type of Privacy Notice Organizer options and click OK Client Organizer Options X Organizer Options Slipsheet emplate Landscape r Type of Organizer Select only clients with Organizer p Letters selected in Preparer Options Cover Letter Do Not Print Any SSN s Spell month out on lett v Do Not Print SSN on Top i Duplex Forms PDF print only Privacy Notice Options C CPA Other Type of Professional Enrolled Agent None liet select appointment info from Print Blank gt Display prompt xi Select Forms to Print enneire Template Select the type of organizer Select the desired Cover letter format Select to view blank organizer options Click to force or suppress specific forms 4 Tag the clients you would like to prepare organizers for 5 Select the corresponding button to preview s
98. Last Name SSN Birth Date Address City State Zip Code LL Apartment oK Cancel Help Jump to STaR Wizard Required Fields Click to toggle between the Input Forms and STaR Wizard input screens 200 L Uo 0 CC Enhancing Your Performance 67 Click Jump to STaR Wizard at the bottom of the screen to toggle between the Standard and STaR Wizard input screens If STaR is checked as your default method your tax preparation experience will begin as follows Click the New client button g ZEP New The following STaR Wizard screen will appear gt Beige colored fields indicate a required entry They must contain data in Click to toggle between Spanish and English input screens Click to toggle between the Input perme ane oleh I aa STaR en Espa ol _ Jump to Standard New Client screens 68 order to proceed to the next screen C STaR Wizard BAX Taxpayer s Social Security Number Taxpayer Social Security Number SSN Re Key SSN SS Enter the Taxpayer s Social Security Number SSN or Individual Taxpayer Identification Number ITIN If the taxpayer doesn t have one of these numbers select Ctrl A and the word Applied appears in the SSN field You can help the taxpayer apply for an ITIN by filling out a Form W 7 The Form W 7 can be found in the list of input form
99. New Button provides multiple options Add a new asset Expand the selected form Collapse the selected form Access the Help file Close the Asset Tracker fh Asset Tracker Lx d x m A Rea New Asset Close pand Form cription Date Cost Sec179 SpAlow Basis Depr ollapse Form Equipment 7000 7000 0 0 0 Help limulator 05 01 2011 50000 50000 0 0 0 e A Track ler 05 01 2011 5000 5000 0 0 0 DRILL Fu e 05 01 2011 215000 46000 0 169000 22533 Click to Delete the selected asset Click to Recycle the selected asset Totals 4 Assets in Form Sort By qum Asset Description C Date Acquired Cost 277000 Delete asset Asset Tracker The Asset Tracker grid displays summary information for the form that is currently selected in the tree A C D Sort assets by any column in ascending or descending order by clicking on the column header The arrow indicates the current column selected and in what direction it 1s sorted Look at the totals for cost current section 179 expense current special depreciation allowance depreciable basis and current depreciation Double click on an asset to see that asset s details Tag untag all assets by clicking on the header in the tag column Use Shiftt Page Up Shift Page Down to move through the assets in the order sorted in the Asset Tracker grid E Delete assets by tagging
100. Next 4 The check to be reprinted will appear Verify the information and click Finish to continue or Back to make adjustments EE Financial Products 195 5 After clicking Finish the check will reappear on the Bank Checks screen Follow the Print Checks procedure 6 After printing the check a check reconcilement record is again created for the reprinted check The previously printed check will have a VOID reconcilement record created automatically The system will forward both reconcilement records to the bank 7 Reference the bank s user manual for procedures on handling VOID checks Lost or Stolen Check Printed checks that are damaged lost or stolen after disbursement to the taxpayer may require bank intervention Due to the tight security related to lost and stolen checks and different scenarios encountered the ERO should contact the bank 1 Click the Bank Tab button then click Lost or Stolen Check 2 This process varies by bank Follow the prompts given for the requested information Summary 196 The Bank Summary screen is where you will find information for items passed to you from the bank Available check print records fee records deposits checks cleared RAL denials and other bank information are detailed on the summary reports 1 Click the Bank button then click Summary located under Bank Tools 2 Tag the desired report and click View or double click on the desired summary report 3 Summary repo
101. Overview Send Clients Securly Manage User Log Out Espanol LJ vc SE 0 Acknowledgements Database Bank System 1040 Extensions Other Samples Mode 9 or on Financial Products Bank Product Disbursements Denied RAL Acknowledgements EF Status Acknowledgements Alerts EF Summary Eunding Discrepancies Bank EF Summary Totals Preparer Fees from Bank Confirmation Letters Confirmation Letters Outstanding Preparer Fees Transmissions Check Print Summary Checks Printed Transmissions Checks Reprinted Check Print Action History 172 E File Center Helpful Links We know how helpful it is to have ready access to many e file and bank documents From the E File Center Overview screen we have provided access to several helpful documents In addition we allow you to link to IRS and state websites Click any of the items listed under Helpful Links and State Links to view and access helpful information t Querview ESTIS e D e Send Clients Acknowledgements Database Bank Reports system 1049 v Sei Exteriors Other compere on on Click to access c helpful e file Historical Totale ppro o IRS Website information MOM Alerts o Financial Product Financial Product Summary o B 0 0 1 Confirmation Letters o AURS o State Mandate At State
102. R eee lea ea ioe EUR mm Search for a specific form nosset X utes ke P ren Section B Individual s Conducting Transaction s If other than above Agent ar tipe agers en c ques ARS TOR TET T zum CI ll the d Wien Hoa Sch R p2 ear all the data input wont fon sch E et EXC TPSus Us UP coe 3 Cour cae A bas woth on the forms Enovede 640 Siliecietod wk Meier losen 29 Desi atitotoncrtertal aL Oese b Passt e Alien siste Otter ch New Medos In4n SP Sch losuedy Number i Ns MO SP Sot Part Amount and Type of Transactionis Complete all items that apply 30 Mutipio tansadions View the enti re form omen dan AH CASH IN h US dollar equivalent 3 CASH OUT nU S dlar equivalent Pon I M ponse sonetz E m EM poeot a dee ere ers Select the form hose 5P p2 e Cumeneyressved om uietanskte ot e C nercy paid fom vie transfer in IMS NR ot Purchases of sacro shed f egtidbeinarunent cashed dg ches Inu MT en eee Rosa u NE teat aa PAM eee HET d IO40EZ p t 3 Other qpedityr 1040EZ p 2 Enter total of CASH INtransadion s Enter total of CASH OUT transact en s D40EZ SP p 1 33 Date oftransacion 34 Foreign currency used Der SCE toen ot PR Gesina Raporna Tasoctons Inns is MEN panapa a ae EET wew wceen e eg ip eeo ol cae eL iana No calculations are performed Manually calculate the values and enter fo them on the corresponding lines 134 Internet Service Provider ISP
103. Step by Step Customizing a Letter There may be times when the Custom Letter template does not meet your needs Let s walk through the steps of customizing your own letter la To access the Custom Letters utility while in a client s return select LTR Instr Ltr from the Forms pane Click the Click here option to create or edit Custom Letters link 1b To access the Custom Letters utility outside of the client s return click the Settings menu and select Custom Letters UW Custom Letter Federal Paper Filing Template Click the plus sign to Tween mz m z w efe S 3 expand and view the letter xe wn wes mn nas sections Letters Copy letter eee Please input a name for your copied letter The Copy icon is used to copy the letter sections Leino ox 2 The 1040 tab should already be highlighted Click the plus sign next to Federal to expand the tree Click the plus sign next to Paper Filing and highlight Template The template can be used as a starting point and modified to meet your needs 3a Click the Copy button from the button bar at the top of the screen A message will appear stating Please input a name for your copied let ter Give the letter the name Sample and click OK The template will be copied to the new Sample letter Sample will be listed in the Letters column Instruction Letters 115 3b
104. TaR Efficiency Enhancements pg 67 Updates pg 20 99999 000000000 1 UO e0uu00V 4 EN New Features 3 New System Features Forms and Schedules 1040 1041 999999 9 99 99 Federal Form 8949 Federal Added all additional forms 126 for IRS MeF Phase III Alabama MeF Iowa 2D Barcodes on Forms Kentucky Form 8949 K 8879 K Maine Schedule A Worksheets MeF Maryland Form 505SU Form 502B MeF Massachusetts Form MA 2210A Minnesota Form MIPR E Filing Ohio MeF Texas Ability to file multiple Texas Franchise Tax Refund for each single member LLC from the Federal Schedules C E and F in the same return West Virginia MeF Federal Private Activity Bonds on Interest and Dividend grids Idaho Form PTE 01 Form PTE 12 Texas Ability to file multiple Texas Franchise Tax Refund for each single member LLC from the Federal Schedules C E and F in the same return 1065 Federal Form 8822 B Connecticut CT K 1T Idaho Form PTE 01 Form PTE 12 Maryland Form 510C Massachusetts Form M 8736 Oregon Portland Form C Form P Form SC Rhode Island Schedule K 1 Utah TC 250 000 oo o o 1120 Federal Form 1125 A previously known as Schedule A Federal Form 1125 E previously known as Schedule E Federal Form 8050 Federal Form 8822 B Iowa Form 1120X Oregon Portland Form C Form P Form SC Virgi
105. The first tab Notes will NOT go to the IRS Notes can be as long as you want You can enter as many notes as you wish Information on the other three EF tabs are sent to the IRS as part of the e file They are limited to one note each and can contain no more than 4 000 characters Notes Notes are NOT included in the IRS e file Notes are items you may want to follow up on specific client needs missing information etc EF Preparer Notes EF Preparer Notes are included in the IRS e file Click this tab from the Notes screen to provide additional voluntary information related to the tax return but is not required EF Election Explanation EF Election Explanations are included in the IRS e file Click this tab when the taxpayer makes an election o OO Filing Returns Electronically 155 EF Regulatory Explanation EF Regulatory Explanations are included in the IRS e file They are similar to EF Election Explanations but are used when the taxpayer cites a specific reg ulation The specific regulation must be cited followed by an explanation or other supporting information a Note 1 Notes X Notes EFPreparerNotes _ EF Election Explanation EF Regulatory Explanation um Need to verify addfess before sendit Information entered under this tab will NOT be included in the e file sent to the IRS Information entered in these tabs WILL be included in the e file sent to the IRS Previ
106. When the email is received the password will appear in the body of the email message You must have your email program such as Outlook or Outlook Express already set up to email a tax return To set up your email click the Settings menu and select Email Settings Step 23 Exiting the Return Emailing a return will send the return in a PDF file format The recipient When you are finished printing or viewing the return use the following steps to exit A Click the Clients button on the button bar This will return you to the Client Selection screen B Or you may click the Close button on the button bar This will close the client You can then exit the program by selecting Exit from the File menu Congratulations You have just completed the 1041 sample return 1065 Sample Return Frank Able and Susan Baker partners of AbleBaker Bookstore have just come into your office to have their partnership tax return prepared Let s quickly prepare a partnership tax return for the AbleBaker Bookstore and learn about some of the features in the program Step 1 Start Up A Double click the Program icon on your desktop B The program should automatically open to the Client Selection screen If not click the Clients button on the button bar Step 2 Folder Selection A Click the 1065 tab B Create a new folder by clicking Edit on the menu bar and selecting New Folder from the list C Type Tutorial in the New Folder Name fi
107. ad Status Close Ark Control Alerts Update 9 Custom Letters Fom Common Type Used Click here to create or edit Custom letters Print Custom Letter Print separate Federal State Cty instruction letter s Proper case the maling name and address plions D ADV Advocacy B EF EFie Primary name and Adress if different D W7 AppITIN zm D W28 Ganbing W2 Joerifer First Name to use in sahtation it ferent Spouse First Name to use in salutation it different Federal ove es FERPLATE 1 P T0934 Mec hone Ad Jmm El D 10990 Qual Ed Pris eme emu El er extension I8 LETTER El eem iO ETER El State Paper Fling N0 LETTER Bi Only the applicable Amended io LETTER s Fee ates wan the retum ering omre El EF extension W0 LETTER FS Felimatne Custom Letter templates are included in the program Default templates include W Federal Paper Filing Amended Electronic Filing EF Extension Extension E State Paper Filing Amended Electronic Filing First Extension Second Extension EF Extension K 1 B City Paper Filing Amended Extension Each template contains numerous sections Letters and sections can be cop ied and or modified Templates will only generate if they apply to the return ex The amended gt template will only print when preparing an amended return
108. al Leasehold Improvement MACRS 39 Year Straight Line Other Miscellaneous No default method selected Not Applicable No default method selected l Land is not depreciated If land is selected the entire cost will be entered as land on the General tab 2 If the property was placed in service before May 13 1993 the Asset Manager will use MACRS 31 5 Year Straight Line 3 Trucks and vans have slightly higher passenger automobile limitations than stan dard vehicles See the instructions for Form 4562 for additional information 4 Vehicles with a gross vehicle weight of more than 6 000 pounds are exempt from the passenger automobile limitations See the instructions for Form 4562 for addi tional information a 100 Tabs 5 Sport Utility Vehicles with a gross vehicle weight of 6 000 to 14 000 pounds are exempt from the passenger automobile limitations However they are limited to 25 000 of Sec 179 expense 6 Enter the appropriate period in years for amortization 7 Qualified Indian Reservation property is depreciated at faster than standard MACRS rates Select the proper method for the class of property being depreciated and the modified Indian Reservation calculations will be used See Publication 946 for addi tional information General Tab The General tab shows detailed information about the asset A Federal and Alternative Minimum Tax depreciation calculations appear side by side AMT calculations are defaulted based
109. and other mileage i Asst oon E a X m m A New SpAllow Cal 179 Close AlAssets ColorKey General Vehicle Disposition it Form 8829 1 T oor i ScnAPonS Amounts OCEAN m PONTS et E SchCst Business Mileage Li 25807 x 0 50 12904 ZING el Tools Commuting Mileage 4220 2007 Small Tools TES Sr Sates Other Mileage gg 2010 Toyota Prius a eee Eon AUTO Business Use amp pases Backhoe Loader Depreciation Allowance Bus Mies 25807 x 023 5836 eel Prior Years Depreciation Allowance 8373 Bobeat Accumulated Depreciation Allowance as Bobcat Utity Tra tod Color Laser Print Parking and Tols Business Only 100 100 100 Estimating softwi interest Expense 3400 x esse 2842 2842 Hydraulic Excave Gasoline and OR 6540 x sso 5466 Tablet P c Repairs 1282 x 359 I 1072 Tool Trailer Track Loader Other Expenses x paso o Trailer Employer Provided Vehicle Value x fissa 0 United Tractor Lease Payment Expense x gs 0 Sch 1 Inclusion Amount x 6359 0 Kitchen Applianc current Depreciation 27666 27666 Rental Home Roof Replaceme Options 6000 to 14000 GVW Method Selected Optimizes x Washer amp Dryer E Sens E liens aaa 102 B Current year depreciation allowance for Standard Mileage Rate SMR will calculate based on the business mileage C Prior year depreciation allowance
110. ar 1040 returns going forward For example on January 2012 1040 MeF will accept tax year 2011 2010 and 2009 returns meeting MeF criteria Year round filing is also available Reject codes are similar to the Legacy platform you are accus tomed to but will appear in a different format They are referred to as busi ness rules Individual states are also migrating to the MeF platform The states that we will support include AL AR CO CT DE GA ID IL IN IA KS KY LA ME MD MO MI MT NE NJ NM ND OH OK OR PA RI SC UT VA and WI Others will be added as they become available In the E File Center the Send Clients screen has an additional column indi cating whether the return is sent through the MeF platform Other e file reports will also include this column 200 LLL NN Filing Returns Electronically 177 To opt out of MeF on a specific tax return while in a return choose EF E File from the Forms pane Check the Opt Out of 1040 MeF Federal and State for this return box Electronic Filing Declaration i File federal return electronically ves Check this box to optout s Electronically s of MeF for this return Opt out of 1040 MeF Federal and State for this return K Yes Override EFIN Force new DCN ri Federal returns with piggyback states not available in the MeF program will automatically be sent via Legacy format 1040 Drain Times The software has an automated E File Center that operates d
111. arry to the Qualified Dividends field If you need to change this amount sim ply type the correct amount in the field ole The Qualified Dividends field automatically populates based on the entry EEL 1041 Sample Return 213 214 On row 2 enter First Choice Funds for the Dividend Income Description Enter 34665 for the Account Number Enter 229 for the Total Ordinary Dividends G Click Close Step 11 Capital Gains and Losses A Click the Schedule D link on line 4 of the Form 1041 page 1 input screen By clicking this link the program will jump directly to the Schedule D Capital Gains and Losses input screen B Click the Details on Sales of Short Term and Long Term Capital Gains and Losses grid C Enter the following information on row 1 of the Schedule D Sales of Short Term and Long Term Capital Assets grid 1099 Transactions Prop Desc Southwest Airlines Shares 300 Type 0 Non specific Acquired Date 08 01 2007 Sold Date 10 17 2011 Term L auto populates Sales Price 11 475 Cost or Basis 8 754 The Gain or Loss will automatically be calculated based upon the Sales lt gt Price and Cost or Basis amounts no entry is required in the Gain or Loss field D Enter the following information on row 2 of the Schedule D Sales of Short Term and Long Term Capital Assets grid 1099 Transactions Prop Desc Delta Airlines Shares 260 Type 0 Non specific Acquired Date 04 17 2008 Sold Date 03 24
112. at any manual entry will override the computer s calculations If a zero amount is desired enter Asset Tracker Fields with an arrow indicate you have the capability to enter the item through the Asset Tracker F5 Key Add to Entry Fields with a plus sign indicate that entries in the fields will be added to the amount s already carrying to the field Form Links Many of your tax returns can be prepared from the main General Information screen by using Form Links Click the underlined highlighted form name or description to access the associated form Make entries on the form then click the green arrow button at the top left of the input form control bar to return to the previ ous screen For example on the General Information screen under the Adjustments heading click the Schedule A link for Itemized Deductions The program opens the Schedule A input screen After entering Schedule A information click the green arrow button to return to the General Information screen Click the arrow to link so moe Lite EN TERRENI EF Timing for Sep 1 DD Sep 1 or Check Se Click the form back to the General Income ied inu to the Information screen 7 Miscellaneous sources of income 5 1040 Page 1 applicable form BAG Piece sede PD sey ho ed C PARA AREG SA Form V 2 8 Listinterest FH or enter if under 1 500 Schedule B 500 9 List Dividends fRA or enter if under 1 500 Schedule B 10 Taxa
113. ate Rejects Bank Held At Filing Center Schedule A E File Bank Transmission 1 Click EF Ctr on the button bar 2 Enter your User Name and Password Click Log In 3 Verify that 1040 has been selected from the System drop down box 4 Click Send Clients Verify that a code appears in the Product Type column Tag the clients and click Send aw Verify the information and click OK to transmit the files to the filing center Click to access the bank p clients that are ready to Click to transmit pin aie transmit clients Tag clients that are ready to n Tnm sw e er ms ie Aunt nce v i transmit E FULLTEST ONE XoxaxasHa US No ama ur m Rano ames wn Verify a m erre x xemelus we pan A xum pnm wares bank E MERRILL MATT XXX XX 7777 US No 966 o Bonu 457878 1 28 2011 an E TAXPAYER SAMPLE amp SPOUSE mowo US No sn D 305 uun wae product E THREE TEST XXX XX 4434 US No 3044 ur 3519 860065 4 13 2011 exists 192 Check Alignment Each printer functions differently Your printer may pull check stock differ ently than another This could impact the check print alignment If the check print alignment needs to be adjusted proceed through the following steps 1 Under the Bank tab select Print Settings 2 Load blank paper in the printer Click Print Test Check Hold the print ed information up against the check stock to verify alignment 3 From
114. ate Credentials Please Provide Your First and Last Name First Name lol D 3 T ther Name fp Use Name must be at least character but cannot exceed 20 charactere Lettre AZ Numbers 63 and he underscore C character can be used UserName Lovstea I femen mustbe at leas charac Password musthave at least one number orsymbol and ove character Security Question Question Mathers maiden name v Answer e Administrator Enter your First Name Last Name and User Name Enter a new password and verify it e User Your First Name Last Name and User Name will already be filled in If you want to make changes delete the entries and type in the desired names Enter a new password and verify it You may be prompted to create additional user names refer to the E File Center overview for additional instructions Create additional User Names for Your Office Your new user name password has been created For your security we recommend that you create additional user names for anyone else in your office that will need access to the E File Center Multiple User Names Will Allow you to limit access to areas of the E File Center by user Give you full control over who can access the E File Center Increase the security for your client s E File information Additional user names can be added from the Security area on the left
115. ave or print organizers uj m Ms Preview Save Print 84 From the 2011 Client Selection screen select the Utilities menu and then Organizers The program will access your 2010 client list To customize the cover letter and questionnaire for the Organizer iC reference the Instruction Letters Custom Letters section gt You do not need to update prior year clients in order to print Organizers Security Security has been designed to limit access to client information Implementation of the Security feature in your practice is optional but high ly recommended You can create secure folders that can only be accessed with a password You can also restrict access to other areas of the program Security Setup 1 To set up Security click the Workbench menu and select Security Check the Enable Security box 2 Enter a Master Password consisting of 6 to 20 characters The pass word is case sensitive Re enter the password to verify it was entered correctly 3 Select a question from the drop down box Provide the answer to your question This question allows you to open the program if you forget your password o OOwK Security Setup Password Protect Login Preferences v Enable Security can also set up secure client data folders Master Password case sensitive 6 to 20 characters Repeat Master Password 0 ee r Question Select a qu
116. ax retu rns Bold Data E Print in Reverse Order r Use Password on Saved Tax Retums J Click the Defaults for Advanced Form Delivery tab After working in a client and clicking Review the Review screen will appear allowing you to preview the return prior to printing You will see an Adv button on the option bar located at the top of the Review screen Defaults set on the Defaults for Advanced Form Delivery tab will be applied when accessing the Adv button Reference the Print Features Advanced Form Delivery section 5 Printer amp Delivery Settings t3 Printers amp Options Defau dvanced Form Delivery r e3Printiv Copies Sah zn Set2 EE Set zn Set 4 vn EL EN dn save location Note All Printer amp Delivery Settings are UserlD Specific Reset OK esc Cancel Help Print Features 129 Printing the Return Each client you prepare a tax return for is unique Like your clients we have unique print options You can mix and match these options to meet your needs Print Individual Returns Most preparers like to print returns while working in Client Selection 1 Click the Clients button Tag a client and click Open Click Review Close the Audit Diagnostic screen if it appears the return Tag the desired forms printer icon Let s assume all of the information is correct and we are ready to print Tagged F6
117. ay and night It also handles federal state and bank transmission and receipt processes 1040 Drain Times View the latest e file drain times in the E File Center From the Overview screen click Drain Times in the IRS Links box before IRS drain times to ensure that returns will be processed for the gt Legacy and MeF drain times are different Times indicated are one hour applicable drain IRS Funding Cycles The IRS processes returns daily but funding cycles occur once a week for both paper and e file To assure returns make the weekly funding cycle returns must receive an acceptance in the Thursday morning drains The software will notify all users via Alerts if drain times change From the E File Center Overview screen you can also click the Drain Times link To access the IRS Refund Cycle Chart noting when clients can anticipate the receipt of refunds from the E File Center Overview screen click the Refund Cycle Chart link For the past few years the IRS has been implementing a system known as CADE Customer Account Data Engine to process tax return data more quickly This allows taxpayers to receive their refunds sooner and allows IRS Customer Service representatives access to accurate and up to date information 178 With CADE some clients may receive refunds more quickly than is indicat ed on the IRS Refund Cycle Chart However the IRS will not include ALL taxpayers with the above criteria and they do not in
118. bank check if applicable After sending the test return refer to the instructions printed on the sample transmission report for viewing printing sample acknowledgments and bank checks E File Center Database 170 We have provided a utility to help you track the status of your e file and bank clients After transmitting clients to the E File Center you will be able to view the status of returns as they progress through the E File Center IRS state and bank From the Overview screen click the Database button The initial Database screen gives a quick summa all available database options Select one of the available optio NC TID NN ON Sank Repos You will link to a grid listing clients meeting criteria for the option selected The grid has several columns noting information related to the option select ed Click on the column header to sort the grid per the selected column Click a client s name to view detailed client information ecurit upport og Out EET niat Name Overview Send Clients Acks Database Find a specific client by entering the name or SSN Database Listing AI Click the name to view detailed client information Status Bank Click to view the report uon fene us uo sait tant at editt iind 3 BATHOLOMEW MARTIN XXX XX 5151 us No 11 16 2001 11 00 46 AM 11 16 2011 2 01 02 PM Accepted Cj GONZALEZ HIDE XOCJX 334 US No LLl2ML7SSSBAM
119. be automatically populated but it can be changed to anything you would like We will leave the default name for this return LLL 1040 Sample Return 55 56 D Now that our delivery choices are made click Start Job at the bottom of the screen A status window will appear and the delivery methods will proceed E Please verify that the methods of delivery were successful check the printed copy and the saved copy Step 25 Exiting the Return When the Advanced Form Delivery is complete use the following steps to exit A Click the Clients button located on the button bar This will return you to the Client Selection screen B Or click the Close button on the button bar This will close the client You can then exit the program by selecting Exit from the File menu Congratulations You have just completed the 1040 Sample Return Enhancing Your Performance The software provides many tools that will help enhance your tax prepara tion We know that in today s busy world time is of utmost importance We have included tools that will save you time without compromising your final product Control Data Control Data is an area of the program that contains many system controls including license information drive selection and switches Control Data is found under the Settings menu The Firm and Access information are completed during the initial con C figuration process E Firm There are four key fields that are req
120. ble refunds credits or offsets of state local inc tax Refund Vwkst 28 Colors This feature will allow you to customize the colors while working in the program Click the Settings menu and select Colors Change Colors Click on a color to change it Background Color Settings Focused Field Background Detail Statement Field Background Normal Field Background LA m Input Screen Background Click to change the color settings Click to restore the Text Color Settings default colors Normal Text Click to save the changes To change a color setting click the color The color pallet screen will appear Color 2 E3 c Basic colors Custom colors Click to apply the color BEEBE NN NM NI selected Define Custom Colors gt gt een Pick one of the Basic colors or click Define Custom Colors for more selections To create custom colors enter new values in either the RGB red green blue or HSL hue saturation and luminescence color models or just select the desired color After the color has been selected click Add to Custom Colors Up to 16 colors can be saved before the colors start to override one another After selecting the custom colors the new colors will be added to the color pallet screen Click to create custom colors 2o o 00 0 C7777UUU General Instruc
121. button used in the Asset Tracker Assets highlighted in yellow on the tree or in the grid have been disposed of during the current year Assets highlighted in cyan have a date of disposition after the end of the current calendar or fiscal year Italicized font indicates that an asset is part of a group disposi tion Bold italicized font indicates the primary asset in a group disposi tion Assets highlighted in magenta have been placed in service after the end of the current calendar or fiscal year gt Click the Color Key link to open a grid defining a legend for field colors Asset Tracker Button Bar The button bar is used to access options within the Tracker Each option will be covered in greater detail later in this section of the reference manual a mm W New SpAllow Calc 179 Close A B C D E 98 A Click the New button to add a new asset B Click the Sp Allow button to make elections regarding the special depre ciation allowance C Click the Calc button to access the calculator D Click the 179 button to access additional information regarding section 179 expense in the current return E Click the Close button to close the Asset Tracker New Asset The New Asset screen allows for quick entry of basic asset information It Zz gathers the minimum amount of data necessary to start depreciating an asset The screen expands as additional data is required New A Enter the form and
122. ccess the EF Center via the EF Ctr button on the button bar For step by step instructions on creating the e file and transmitting the return refer to Filing Returns Electronically Caution If returns created in Client Selection folders other than the Samples folder are electronically filed they are considered live returns and will be sent to the IRS state agency Take care when clicking the Create E File s button to ensure that live data does not get transmitted when testing and exploring the e file process Step 22 Printing the Return You have various options for printing A Click the down arrow button in the Print drop down box and select All to print all of the pages in the return along with the letters invoices supporting schedules etc that you have designated the software to pro duce Then click the Print button B To print specific forms tag the forms you want to print by checking the box next to the form in the Output Forms list Select Tagged from the Print drop down box and then click the Print button C To print only one specific form highlight the form make sure Page is selected in the Print drop down box and click the Print button D In addition to printing directly from Review mode you can also click the Adv button to open Advanced Form Delivery This feature has options for paper printing emailing and saving all at the same time E In the Print section select EF Signature Set from the Set 7 drop down bo
123. cess the E File Center you must have an Internet connection 1 Click EF Ctr on the button bar 2 The E File Center login screen will appear EFile Center Login 2011 User Name Password Keep me logged in First time logging in Are you the administrator Log In as a user It will be necessary for the Administrator to perform the initial setup as they will have the ability to see all user names and passwords If you are the only person in the office follow the Administrator instruc tions gt You have the ability to login to the E File Center as the Administrator or 3 If this is the first time you are accessing the E File Center enter your User Name and Password as the following e Administrator Enter your Account Number for the User Name and your Charge Number for the Password as they appear on your 2011 License Notice e User Enter the User Name set up by your Administrator and enter the word password all lowercase as your Password Click the Log In button i For security reasons we recommend that you create unique user names for each individual in your office who will access the E File Center Reference steps 8 through 14 for details 1 Check the Keep me logged in box to make sure your session in the E File m Center does not expire 158 gt gt A screen will appear requiring you to create a unique User Name and Password Cre
124. ck OK 8 Double click on ine 18 to open the Detail Statement grid 9 Enter Farm income in the Description column Spouse in the 7 S 2 column and 500 in the Amount column 10 Click OK B Now we will generate the Married Filing Joint vs Married Filing Separate Worksheet to determine if splitting the return is beneficial to the client If you do not want to generate the Married Filing Joint vs Married Filing Separate Worksheet before splitting the return click the Utilities menu and select Split Return unspecified items to be allo cated 50 50 joint Dialog windows will appear as indicated below 80 Married Filing Joint vs Married Filing Separate Worksheet A A Married Filing Joint vs Married Filing Separate Worksheet drop down box is available in the Advanced option mode of the General Information input screen under the Filing Status section If input entries were not designated as taxpayer spouse or 50 50 joint then the work sheet can still be generated based on the options provided in the drop down box exemptions income adjustments deductions credits other taxes pay gt The Married Filing Separate Worksheet includes all aspects of Form 1040 ments and the refund or amount due Generate MFJ vs MFS Worksheet allocate unspecified amts 50 50 joint Generate MFJ vs MFS Worksheet allocate unspecified amts 100 to Taxpayer MFS Worksheet not selected After making your selection review the return by
125. ck to view accepted RAL bank clients only Bank Accepted RTs Click to view accepted RT bank clients only Other Unresolvable Bank Products Click to view bank clients with unresolvable bank products Financial Products 197 Find a specific client by entering the name or SSN Tag a client and click View as Report to view the client information lients Li Standard Extensions Other Samples Mode O off 8 On Type MeF SendClient Date Ack Date Status Bank BUR TIM XXX XX 8109 NJ No 4 22011328 08PM 4 2L2011329 4 PM Accepted Approved BUR TIM XXX XX 8109 US No 4 21 2011 3 28 08 PM 4 21 2011 3 28 54 PM Accepted Approved FRIDAY FIVE XXX XX 8518 US No 1 8 2011 6 31 36 PM 1 8 2011 6 31 36 PM Accepted Approved FRIDAY FIVE XXX XX 8518 UT No 1 8 2011 6 31 36 PM 1 3 2011 6 31 36 PM Accepted Approved FRIDAY FOUR XXX XX 4568 US No 1 8 2011 4 42 54 PM 1 8 2011 4 42 54 PM Accepted Approved FRIDAY FOUR XXX XX 4568 UT No 1 8 2011 44254 PM 8 2011 4 42 54 PM Accepted Approved FRIDAY SIX XXX XX 8664 us No 1 9 2011 4 34 55 PM 9 2011 4 34 55 PM Accepted Approved FRIDAY SIX XXX XX 8664 UT No 1 9 2011 4 34 55 PM 1 9 2011 43455 PM Accepted Approved FRIDAY THREE XXX XX 9846 US No 1 201152821 PM 1 8 2011 5 28 21 PM Accepted Approved FRIDAY THREE XXX XX 9846 ur No 1 8 2011 5 28 21 PM 1 8 2011 5 28 21 PM Accepted Approved FRIDAY TWC XXX XX 3231 US No 1 8 20
126. clicking the Review button on the button bar Review the MFS Worksheet Click the Split Return button A dialog window will appear pro viding additional information Split Joint Return ied Note Any value that has not been allocated to either taxpayer or spouse will split 50 50 between the taxpayer and spouse Note By hitting the OK button new client files will be created Please look for the Cris Winter and Britt Winter tax returns MFS Filing Status in the same Data Path Name My Tax Files and folder Samples Note By creating 2 separate returns from a joint return there may be 2 records logged into the Management Database for the taxpayer 1 for the joint retum and 1 for the separate return This could affect report totals by counting the taxpayer twice Note Taxpayer and or Spouse MFS returns already exist If you do not want to overwrite these existing retums please click Cancel Disclaimer OK esc Help Click OK to split the return Another dialog window will note how to view the two MFS returns Click OK 1040Works 2011 E3 i The joint return has been split into 2 MFS returns You can find the returns in the same Data Path Name My Tax Files and folder Samples To view the MFS returns close out of the current return and open the client selection screen Enhancing Your Performance 81 6 A final dialog window will appear indicating the forms schedules and input screens bein
127. client returns at once You can print or save specific sets for several clients Process an e file proformas diagnostic invoice extension or full return only To access the Batch Process feature click the Clients button Tag the desired clients click Utilities and select Batch Process Select the desired Process option from the drop down box and click Process Process Options Process Only M Prq Process Only w Asset Apts E File Only Print Save Select Set Managing Your Clients Data Mgmt TodoWorks 2011 Client Management Eg Reports Eind by Last Name Completed Status System Labels Slip Sheets Env Select the Clients Federalinfo StateInfo System ClentNo ClentID LastName FirstName Spouse SSN Refund TaxDue Delete 00000 SAMPLE 03 Brady Michael 30043048222 6177 0 Secured Clients Cient Brady Michael Caral 1of1 A powerful tool for keeping track of client information and status is Client Management All Proformaed and Reviewed clients will appear Click the Mgmt button Select the applicable system you want to work with from the drop down box Enhancing Your Performance 91 From the Management screen highlight the desired client and select the Clients Federal Info and State Info tabs to view detailed information for each Reports Eind by Last Name Completed Status System OMG SAMPLES v Labels Clients Federalinio StateInfo ota Ciento
128. client through Internet 5 Client Selection Screen 15 View and change status of client 6 Asset Tracker input 16 Exit client s return 7 Federal input 17 Link to ArkWorks software if purchased 8 State input 18 Enter preparer program default information 9 Detail Statement input fields 19 View and print Alerts 10 Peek and review return 20 Update program files gt To remove or restore button captions click the View menu and select Use Captions on Buttons Customize the button bar by right clicking on the button bar and selecting Customize Menu Bar File Edit View Forms Utilities Settings Workbench Installations Help The menu bar contains many submenus The options on the button bar as well as other features are noted here and at the back of the manual view Cirlsx Review Hise culty Peek Review Without Audits F7 Fa Stra FH Settings 1 1040 Winter Cris 2 104m WILLIAMSON JACK 3 1040 Brady Michael AMA Flext B utes B Emperor W aw trary f Colors Cleat Text X EmeFom F8 L Control Data lt gt EE Settings XP Printer amp Delivery Settings Distribution Sets culty A audis tz Use Captions on Buttons Da Reset Desk 75 Reset Button Bar F Lock Button Bar Cull Bb audits Suppressed pot fom Oher Port Sofie FS CA Me CulsF10 WHFS Help Govemment Instructions Fl Program Help Web Gite
129. configuration so that we can help you get setup and ready for a productive tax season Stand Alone Configuration f Is this computer the only computer that is used to prepare tax returns Select nean ERE MATE ba sh ring ony UK data M Or computers or EN p only comp you use 1 4 Do multiple computers use the software to prepare tax returns Select this L Network Configuration Do mult option if you will be sharing tax data with other computers on your local area ys network o Back Cnet Cae Step 3 If this is the first computer you are configuring on your network select the Yes this is the first computer setup on my network option Click Next and continue to the next step If you have already configured another computer on your network select the No another computer has already been setup on my network option Click Next and skip to Step 7 m T X Start Page First Computer Network Setup You have chosen to setup the 2011 Tax Prep software on a network Is this the first computer on your network that you are setting up this year Is this the first computer on your network you are setting up this year Oves this is the first computer setup on my network O No another computer has already setup on my network sek nee ws Step 4 Enter the location on your network where the settings and up
130. ct matter hereof and it supersedes all previous communications representations or agreements either oral or written ecc License Agreement iii between them No representations or statements of any kind made by any repre sentative of Licensor or its affiliates or subsidiaries which are not included in this agreement shall be binding on Licensor C Amendments Neither party may modify or amend this Agreement except by a writing signed by you and authorized representatives of Licensor D Waiver No waiver of any provision or condition herein shall be valid unless in writing and signed by you and an authorized representative of Licensor Licensor s failure to insist upon or enforce strict performance of any provision of this Agreement or any right shall not be construed as a waiver of any such provi sion or right E Severability If any provision of this Agreement is determined to be illegal or unenforceable such provision shall be automatically reformed and construed so as to be valid operative and enforceable to the maximum extent permitted by law or equity while preserving its original intent The invalidity of any part of this Agreement shall not render invalid the remainder of this Agreement Should you have any questions concerning this Agreement please contact Licensor in writing Table of Contents License Agreement 00 0 cee cence 1 Table of Contents 0 000 e eee eee V Hardware Requirements
131. ct the desired action from the drop down menu and click Process Reference the Batch Processing section Rebuild Clients Alt R Refreshes the database listing for the clients on the Client Selection screen This feature is usually used only when directed by technical support States amp Pups Alt G Allows you to select additional states for per unit processing Reference the Per Unit Processing PUP Codes section Upload Clients Uploads one or more client files to Technical Support or to another office or account bin Reference the Upload Clients section Download Clients Downloads client files that have been previ ously uploaded to another office or account bin You must enter the filename assigned to the return in order to download it Reference the Download Clients section Status Dialog Allows you to update the status or make a comment on a client s return Set Status for Group Changes status for one or more clients Tag one or more clients click the Utilities menu and select Set Status for Group Choose a status from the drop down menu and click Assign Hide Show Columns Alt K Hides shows columns on the Client Selection screen Choose which columns you would like to view Highlight a column and click Move Up or Move Down to arrange the order of the columns displayed e Custom Sort Alt T Sorts clients according to specific informa tion Click the Utilities menu and select Cus
132. d click Next The com puter will automatically list the rest of the check numbers 7 Verify the check numbers Load the checks in the correct sequence into your printer and click Print Verify that the check s printed correctly Click Yes or No 9 If Yes the check reconcilement record s will be created automatically The software will forward these records to the bank 10 If No tag the check s that did not print correctly and click Next 10a A screen will appear with reasons the check s may have printed incor rectly Select the applicable reason and click Next 10b The check s to be reprinted will appear Verify the information and click Finish to continue or Back to make adjustments 10c After clicking Finish the checks will reappear on the Bank Checks screen Repeat the Print Checks process Separate disbursements will be made for the federal and state check records Vy Reference the bank s user manual for check stock storage and security instructions Delete Available Check Records If for some reason a check you have already printed appears on the Bank Checks screen you may delete the check record from the screen 1l Tag the check you want to delete and click Delete The check will dis appear from the screen 194 Issuing the Check 1l Before issuing the check to the client verify the client s identification again 2 Verify that the check number printed by the computer matches the num ber prepri
133. d to the 2011 program Review the information and click Next to continue Step 17 From the Update Settings screen you can configure how often the tax software downloads updates and when they are applied Below are instructions for Stand Alone and Network Installations a Installation 17 Stand Alone Installation Update Settings Step 1 The Download Options section allows you to choose how often the program will check and download software updates Step 2 The Update Options section allows you to choose when to apply new software updates to the program You can choose to apply updates automatically on startup or you manually apply updates If you chose to apply updates manually indicate if you want the program to prompt you on software startup or shutdown Select a reminder frequency Click Next Start Page Update Settings How would you like to update your tax software on this computer Serial Number Download Options Software updates wil be downloaded in the background so that they are ready to be installed at your convenience This computer will check the Internet for available tax software updates Check for and download updates every Eight Hours v NOTE For the Updater to work properly any hardware or software firewall will need to be opened to allow downloads Update Options Security Once tax software updates have been downloaded they will need to be applied on this computer How should this computer
134. database server check with your database administrator to configure the connection If you have more than one prior year version of TaxPrep or TaxPrep10 select the applicable database instance on your server or the machine where the program settings and upgrade informa tion reside If you have a choice between a version 8 and a version 10 data base instance use the version 10 database If there are any doubts about which database to connect to install a new database instance Step 7 If you indicated in Step 3 that a machine had been previously configured on your network enter the location of the configura tion file Click Browse to find theNetworkSetup config file in the network location noted in Step 4 Once the configuration file has been entered click Next and skip to Step 20 Start Page Find Configuration File Network Setup You have chosen to setup the 2011 program on a network You indicated that you have already setup a computer on the network with the program Where did you save the configuration file for that computer Serial Number Firm Data Page 1 Location of configuration file KC TaxPrep TV11 settinas Browse d Bak not Cancel Step 8 Enter the Serial Number and Account Numbers EXACTLY as they appear on your license notice Click Next to continue Start Page Serial Number Account Number Network Setup Enter your serial a
135. dicate specific returns which have fallen into the CADE processing E File Extensions gt Forms 4868 7004 8868 Automatic Extensions of Time can be filed elec tronically The e file extension process works like regular e filing with the following exceptions Form 4868 is used for 1040 extensions Form 7004 is used for business extensions 1065 1120 1120S Form 8868 is used for 990 extensions Form 4868 1040 Extension 1 Check the File Form 4868 extension electronically box on the GI screen instead of File Federal Return Electronically 2 On the EXT 4868 screen select the appropriate Extension Option from the dropdown box 3 On the E File Center Overview screen select 1040 from the System drop down box and then click the Extensions tab If you e file a 1040 extension you can later e file your client s 1040 return When you do this uncheck the boxes you checked in steps 1 and 2 above Check the File Federal Return Electronically box on the GI screen Follow the e file instructions for 1040 returns Form 8878 will be generated if an Electronic Funds Withdrawal was requested with the extension Form 7004 1065 1120 and 1120S Extensions 1 On the General Information screen click the Electronic filing options link to access the e file screen 2 Complete the applicable information in the Electronic Filing section 3 In the Extension section click the extension link to access the Form 7004 input screen Compl
136. donment of Secured F C Cancel Debt Cancellation of Debt C Govt Pmts Government Payments 3 Misc Income 1099 Miscellaneous Income sd C Qual Ed Pmts Payments From Qualified Education Pro M Pensions Distributions From Pensions Annuities etc Soc Sec Ben Social Security Benefits g O RR Pensions Railroad Annuities or Pensions C Clergy Clergy Information C Disaster Disaster Screen al M Schedule A Itemized Deductions E M Schedule B Interest and Ordinary Dividends iv Schedule C Profit or Loss From Business Schedule D Capital Gains and Losses Click to save changes and exit Limited Access User Current User Logged On 26 Performance Security section gt To password protect the Common tab reference the Enhancing Your You can add forms to the Used tab before entering information on the form From the Form tab right click on the form you would like to add Select Add to Used in this Return The form will appear in the Used forms list This feature is helpful to ensure all information has been entered Summary Pane The Summary pane displays client information such as AGI EIC Net Tax Total Payments and Refund As you enter information in the client s return the Summary pane will display real time calculations You may select whether to display the Return Summary which includes the above information or Same as Output which provides a su
137. e defaults for Advanced Form Delivery B Use Defaults click to use the defaults set on the Defaults for Advanced Form Delivery screen B Set Defaults after customizing the settings on the Advanced Form Delivery screen click this button to save the selected items as your defaults B Clear All click to clear all of the settings currently on the Advanced Form Delivery screen 132 B Preview click to preview a set of the items you have selected on the Advanced Form Delivery screen B Start Job click to perform the print or save options you have selected on the Advanced Form Delivery screen Close click to exit the Advanced Form Delivery screen Help links to a document with useful information on how to use Advanced Form Delivery Refer to the Print Features section for other print tips and Enhancing Your ote d Performance Backups section for other tips on saving data Other Printable Forms Not only do we provide various print options we also provide various print able forms Form Filler Occasionally you may need a form that is not included in the system or state you are working with To access this feature within the client s return click the Forms menu and select Form Filler Select the applicable system or state Select the desired form and enter the information When finished click Save The selected form and data will be saved with the return No calculations are performed When the retur
138. e following products to help with your tax preparation B Refund Calculator The Refund Calculator asks for limited attributes that will help you quickly estimate your client s refund before entering the full return This product is installed during the initial installation You can access it by clicking the File menu from the tax program s task bar and selecting Refund Calculator Tabs at the top allow entries for General Client information W 2 income 1099 Income Other Income Adjustments and Deductions Entries made in the Refund Calculator can be exported into Tax Works to create a new client This is done by clicking on the File menu item at the top left of the Refund Calculator screen and selecting New Client B TaxPlanner The TaxPlanner helps you predict your clients tax situ ation with up to five different options on the screen at the same time If you have purchased the TaxPlanner you should have received a CD in the mail containing the installation instructions or an email containing Internet installation instructions After installation you can access the TaxPlanner by clicking the File menu and selecting TaxPlanner If you open the TaxPlanner while in a client s return any amounts entered in the return will automatically be imported into the TaxPlanner You can access the TaxPlanner Help by pressing F1 within the TaxPlanner A tutorial on how to use the TaxPlanner can be found online at cache tax works com B R
139. e not received funds or have received only partial funding Preparer Fees from Bank Lists requested bank fees bank fees received and deposit dates Outstanding Preparer Fees Lists clients with outstanding fees to be paid to the preparer Check Print Summary Lists checks printed by date range Check Printed Lists information about printed checks including print date and time check number amount SSN paid to and phone Check Reprinted Lists information about reprinted checks including reprint date check number check amount SSN EFIN phone number pay to and reprint reason Check Print Action History List all actions performed during the check print process From the E File Center Overview screen click Financial Product Enrollment under the Tools menu Click Compare Financial Products to view the bank fees available states products offered and contact informa tion for the respective banks Click Documents to view detail instructions and information when working with financial products Help Menu There are numerous help features available within the program Click the Help menu Help Government Instructions F1 B Program Help Ctri F1 AJ Web Site Pup History A Alerts amp Revisions Release Dates L 1040 Tutorial LE 1041 Tutorial L2J 1065 Tutorial o Test Communications a ReadMe Q About B Government Instructions Shift F1 View Federal and State i
140. e noted on ONE of the states if you are e filing multiple states in a single return Direct states cannot be changed Refer to State Electronic Filing for detailed information on Piggyback gt State Only and Direct states 144 States to Process and PUP Codes t3 Verify or enter the two letter state PUP Code Suppress EF State EF File 4 state code ees E Resident m E A State Only 2 Piggyback v Check the state EF box Click on Piggyback or State Only to change the file type Advanced gt gt PUP History Get PUP s Remove Close esc Help 10 Click Close 11 To participate in Direct Deposit or Electronic Funds Withdrawal click the grid This allows input of bank information so the taxpayer s refund can be directly deposited DD or the balance due amount can have electronic funds withdrawn EFW from the taxpayer s bank account Direct Deposit and Electronic Fun raw Percent Same as oo Routing Depositor Account Account i Foreign Goverment Fogaa Financial Institution Name umbo Aye Type DD EFW ganer Amount Withdrawal Date 1 us Bank of Utah 2 us Bank of Utah Select the applicable federal Je 3 account to default the state bank information the same as k E Note Form 8888 now allows you to directly deposit your federal refund into as many as 3 bank accounts This
141. e of memory as they are more economical and have increased print speed Common laser printers used in tax preparation include HP 1022 19 ppm HP P2015 27 ppm HP 3050 AiO 19 ppm HP CM1015 MFP 8 ppm HP 3052 AiO 19 ppm HP 2605 12 ppm HP P3005 35 ppm HP 3390 AiO 22 ppm HP M2727nf MFP 27 ppm HP 2820 AiO 20 ppm HP CP3505n 22 ppm HP 4250 45 ppm HP 4240n 40ppm HP CP4005n 30 ppm HP 3000n 30ppm HP 4700n 31 ppm HP 4730MFP 30 ppm HP 5200 35 ppm HP 4350n 55 ppm HP 5550n 27 ppm HP 9500n 24 ppm HP CP4005n 24 ppm Hardware Requirements 1 Be cautious when purchasing all in one units fax scanner printer and copier combina tions as these units do not have printer memory for soft fonts to be downloaded These printers will not work with the program unless you specify output in Adobe PDF format which typically prints at a lower rate To change printer settings click Settings Printer amp Delivery Settings Select the desired printer If using a BubbleJet DeskJet or InkJet type printer check the Print forms in PDF format box Non LaserJet printers have a tendency to blur 2D barcode forms This may cause prob gt lems with the state s ability to scan returns correctly Always submit the original copy to the state for 2D barcode processing New Features Barcode Reader pg 109 Business Electronic Filing Options Screen pg 209 FAQs pg 24 Proforma pg 59 Signature Pad pg 109 S
142. e same DCN as the federal retum Sample DCN Stating Batch Ending Baich EFN Batch Sequence Year toS Tto 399 af ma m3 m2 E The grid on this screen allows you to adjust the range of Batch numbers for this instance of the program IN allowed up to 999 Batches The program automatically fils each Batch with 39 returns indicated by the Sequence number ie starting a new Batch DK esc Cancel Help gt Network users should not use this screen If you need to reassign a DCN check the Force new DCN box on the EF E File screen in the return Step 1 Preparing the Return 2 Click the Clients button Click New or double click on an existing client Enter the taxpayer s name address and other applicable tax return information Reference the 7040 Sample Return section for help in entering tax information Filing Returns Electronically 143 box under the Settings menu EF Settings EF Switches tab You will be prompted for re entry of SSNs names and key W 2 and 1099 R fields Reference this utility in the Helpful Hints section gt To help eliminate e file rejects check the Verify Key E File Information 3 On the General Information screen you have four screen options Advanced for complex returns Lite for electronic filing simple returns EZ for input related to 1040EZ Espanol for forms in Spanish For our example we will use the Adv
143. e split between multiple resident cities if applicable City income must be imported or entered in these income grids in order for the city returns to calculate correctly EE Li ii I i il i 12 EI When adding a city to the Resident Cities window or in one of the city grids the city name must be spelled correctly according to our city database If the city is misspelled the information will not flow to the city return You will see a popup message if the city entered is not recognized by the database B Resident Citie X a TSA Resident City Beginning Date End Date Hooper 1 ohio city name not found or misspelled Sot ImetRow DeleteRow Remove Close eee ofr Enter the resident city The Ohio city tax rates and mailing addresses are contained in the City Tax Information database To access this database click the Settings menu and select Edit OH City Tax Info 204 Multiple State Processing For the business systems there is no OHCGI Ohio City Information input screen All OH city information is located on the city forms To add the applicable city forms click the Cities to access the Cities to Process window Any city not included on the The state indicated on the General Information screen will be the resident state State of
144. eciprocal state agreements the calculation for nontaxable nonresident wages has been automated Sigel Ce eee 3 10 State tax withheld 11 Payer State number 12 State distribution 13 Localtax withheld 7j Locality name j 15 Local ibution Not Applicable ot Applicable Federal Government Pension State Local Qualified Pension Railroad Pension Tier II Railroad Pension Policemen Retirement Bnfts Firefighter Retirement Bnfts Teacher Retirement Bnfts Justices amp Judges Retirement Payments 2nd State C Cy Gad aauscenonniis 10 State tax withheld 11 Payer State number 12 State distribution 13 Local tax withheld 14 Locality name 15 Local distribution Type for State Not Applicable E R 1 and distributions from pensions etc determined and Vouchers ES Payments and Vouchers are accessed on the ES Estimates screen Select ES Estimates from the Forms pane The ES screen allows you to access the federal and state ES forms from one screen Click to access the federal and multiple state ES drop down box Select for multiple ES input Tk538378 040 individual Ele Est View Foms Lites Settings Workbench Installations Bein gt rla Reisw Avdts PUPS Upload Ststus lese AJA 6 amp lale Aik Control Aleris Upgrd mersa DOE 2011 Estimated Tax
145. ection will automatically switch to that folder Delete Folder Deletes the folder currently open Recycle Bin Alt Y Stores deleted client files After deleting a client file you can either restore it or delete it from the Recycle Bin Deleting from the Recycle Bin permanently deletes a file View Review Alt W Processes the client return for completion Reviewing the return will bring up any audits and generates client letters Review Without Audits Ctrl W Reviews return and bypasses presentation of audits I LLL Enhancing Your Performance 63 64 Refresh EF Status Ctrl F5 Updates the E File and Bank columns in Client Selection with the status of each e filed and bank return Reference the Filing Returns Electronically section Refresh F5 Refreshes the Client Selection screen This is helpful if you are making many changes to client files Use Captions on Buttons Hides shows the captions on the button bar across the top of the Client Selection screen Open EF Center Opens the E File Center Utilities Organizers Alt Z Organizes data and helps you communicate with your clients Reference the Organizers section Proforma Clients Alt P Updates prior year client files to the current year Reference the Proforma Clients section Batch Process Alt A Processes multiple client files at the same time Click the Utilities menu and select Batch Process Sele
146. ed credit s or exemption s may be disallowed The IRS will send a notice to the taxpayers The taxpayers will need to con tact the IRS or the Social Security Administration to clear up the related dependent name SSN mismatch Processing of the return will be delayed or 504 Therefore federal imperfect returns can be sent with a state piggyback return Step 1 on how to e file imperfect returns applies to federal and state gt gt States will also accept imperfect individual returns with reject codes 501 Do not check the Mark return as Imperfect box on first e file trans gt mission LL Filing Returns Electronically 169 E File Test Procedures You can test sending an e file return through the program To do so you must be in the Samples folder on the Client Selection screen The procedure is the same as regular e filing EXCEPT when you get to the E File Center select the 1040 system and move Samples mode radio button to ON For testing purposes the DCN will be your EFIN and five zeros An Alert Bar will appear noting that you are in Samples Simulation Mode While in Samples Simulation mode under Tools click Samples Simulation to set manual work flow process This will allow you to manually move the return through each e file step including Send to IRS Receive State Acks Print Bank Checks etc You will be able to test transmitting a return and viewing printing a transmission report acknowledgment report and
147. ed if you are using a BubbleJet DeskJet or Inkjet printer Forms will be printed in PDF gt Soft fonts are an IRS specific font designated for use with tax forms 128 3 Select the applicable printer Fier tor Far Ferme Microsoft XPS Document Writer Check if you are using a non laser printer Click the Settings menu and select Printer amp Delivery Settings Printers amp Options Verify the printer settings El Printer amp Delivery Settings x heck t fme amp Options Defaults for Advanced Form Delivery C e o auto close the z Retesh Paint forms in PDF format works on both laser and nor laser printers alike Test Print Advanced Form Loser Piers Delivery screen Print Where supported must print using PDF format Duplex Workshee Print Cust Ltrs Inve Depr Fiprts amp Slip Sheets using altemate method after the return mtti Check to use a 4 Select the default printer for ust Ltrs Inve Depr Riptts amp Slip Sheets using PDF before the retum 2S o o eS password when labels 4 Select the print set s you would like to default as well as the number of copies per set You can select up to six sets Select the set you would like to default in the Save section Click to browse the desired Printer for Labels Microsoft XPS Document Writer opening saved Auto close Advanced Form Delivery dialog when task is completed t
148. edGear Accounting Powered by CYMA RedGear is excited to team with CYMA to offer a fully integrated sophisticated accounting software solution A few of the features include Single User System Manager After The Fact Cash Disbursements amp Receipts After The Fact Payroll with Complete Payroll Reporting General Ledger with Financial Reporting Accounts Payable Accounts Receivable and Bank Reconciliation Contact your sales representative for more information 777777U YC Other Products 2939 Index 1040 Individual 4 36 56 67 176 1040 Modernized e File MeF 156 177 178 1040 Sample Return 36 56 1041 Fiduciary 208 1065 Partnership 236 238 1065 Sample Return 221 235 1099 DIV 42 1099 G 206 1099 INT 42 1099 Misc 204 206 1099 R 123 144 206 207 1120 Corporation 208 1120S S Corporation 5 142 179 183 203 208 1041 Sample Return 210 220 2D Barcode 2 125 706 Estate 236 709 Gift 238 990 Exempt 142 180 185 A Accounting 239 Acknowledgments 142 163 166 168 Add a Form 26 Adjustments 28 47 Advanced Form Delivery 129 131 133 Advanced Printing 131 Adobe Acrobat Reader 128 220 Alerts 23 58 141 165 202 Amended Return 115 Archive 141 163 167 172 Assets 22 96 107 Asset Tracker 28 96 107 Audits 22 23 33 58 64 77 148 Suppress 34 Audit Trail 34 Auto Backup 57 Auto Fill Library 38 43 48 Backup i 111 112 Auto Backup 57 240
149. ee 139 Per Unit Process PUP Codes 139 PUP HISO oree eI ae entr e 140 Help mo eR BOS erie ARE Paese ev eS 140 Alerts c oss tug tug tea ed Atak QUOS ER DS 141 E File Center ox REOR 141 Filing Returns Electronically 142 How to Become an E File Participant 142 Declaration Control Number DCN 142 o o 0 0 00 0 NN Table of Contents wi viii Step 1 Preparing the Return 143 Transmit Directly to Filing Center 150 State Electronic Filing 0 150 Personal Identification Number PIN 152 Practitioner PIN Program 0 152 Self Select PIN Program 154 E File NORBS ie xi ede EX OUR ER GRRUR AE EA 155 Helpful E File Tools 0 4 156 Step 2 E File Center 157 E File Center Login 004 158 E File Center Overview 204 163 Step 3 Transmitting Returns 165 Step 4 Handling Acknowledgments 166 Step 5 Correcting Rejects 168 E Filing Imperfect Returns 169 E File Test Procedures 2 4 170 E File Center Database 4 170 E File Center Reports 004 171 E File Center Helpful Links 173 Multiple Office Management 173 1040 IRS E File 0 002 000 0200 0 176 1040 Modernized e File MeF
150. eld and click OK Step 3 Client Selection A A database will maintain a list of clients already in your folder Since the AbleBaker Bookstore partnership 1s new click the New Client button Step 4 New Client A The New Client screen will appear enabling you to initialize the client B To move from field to field use your mouse or press the Enter Tab or Arrow keys Press the Shift and Tab keys together to move back a field C Enter the Client Number as 1 D Enter the Client ID as ABLE9999 we have used the first four letters in the partnership name and the last four digits of the EIN The Client ID and Client No fields are optional entries They may be left gt blank or any combination of letters and or numbers may be used E Enter the Partnership Name as AbleBaker Bookstore An input field for the second name if applicable is provided F Enter the EIN without a dash as it is already provided AbleBaker Bookstore s EIN is 10 9999999 I ELL 1065 Sample Return 921 222 G Enter the address as 334 North Main Street 1 AbleBaker Bookstore s zip code is 20904 the program will insert the city and state on the General Information screen If the zip code represents more than one city the program will open a window with a selection of cities for that zip code Select the cor rect city by highlighting it There are no fields for the city and state Simply enter the zip code and 2 AbleBaker Bookstore s city is
151. em to print on the page The new slip sheet will appear in the drop down box for use with other clients To print slip sheets for multiple clients click the Mgmt button and select Slip Sheets Env Select the Type of slip sheet Tag the clients for whom you would like to print slip sheets and click Print Clients a Last Name First Name SSN 1 m ees Michael 30600082 Click to preview how the slip sheet envelope will appear when printed t Aver 5351 Address 3 10 Format P Last TP First amp SP First You can print a custom slip sheet for the For Folder type You can also print slip sheets on a 10 envelope if you desire 110 Backups Designate the location to which you want to back up Tag the items to back up cB Click to perform the backup operations We highly recommend that you backup critical files periodically There are many software products available to backup program files We have included a utility that allows you to backup files to your hard drive zip disk tape drive or another computer on the network We suggest you use separate disks for each day of the week It is also wise to perform a monthly backup Use a separate disk tape or drive each month Our utility will backup select items settings client files and related database information If you are operating on a network others must be out of the program before using the back
152. en to proceed to the next screen The BACK and NEXT keys can be used for the same purpose Use the Ctrl J key to toggle between the STaR and Standard Input screens Use the PgUp key to go back to the previous screen Use the PgDn key Personal Information Screen The Personal Information screen is used to enter filing status information The Preparer Number allows you to identify which preparer is responsible for the preparation of the return This number coincides with information entered in Settings Preparers The number keys can be used to enter the Filing Status of the Taxpayer Type 1 for Single 2 for Married Filing Joint 3 for Married Filing Separate 4 for Head of Household and 5 for Qualifying Widow er After selecting the correct filing status use the Tab key to advance to the next required field The screen changes dynamically based on the filing sta tus selected The screen for our example is for the Single filing status Note that no fields are displayed for Spouse entries The following screen would appear if you hit 2 for Married Filing Joint 70 Click to jump to a desired screen Personal Information s 5 Personal Information gt Dependerts Dependent EIC Due Diigence gt Taxpayer EIC Due Dilgence W 2 gt Eling Information El Check if Taxpayer can be claimed on someone else s retum Jump To Input Forms STaR en Espa ol
153. ence Tablet PC Convention Hy E E Teer i pct Pron Tobie Ras checkboxes are Current Deprec 1060 1068 Trailer Daamen ee used to answer the Sch E 1 Accumulated Depr 1060 1060 b E Snes oS SSS questions on the Override Current lt gt 4562 Part V for listed property E The Section 179 Property checkbox is used to determine which property is subject to the 800 000 imitation for each year If the property does not qualify as Section 179 Property uncheck the box See Publication 946 for information oy properties that qualify as Section 179 Property F The Qualifies for Special Depreciation Allowance checkbox is used to determine whether the asset qualifies for section 168 k bonus deprecia tion If the asset does not qualify as section 168 k property uncheck the box See Publication 946 for more information EE Enhancing Your Performance 101 G If the asset does not meet the Original Use Test to qualify for the special depreciation allowance check the box H The Amortization Code Section and Period boxes carry to Form 4562 Part VI for assets that use the Nonrecovery Amortization depreciation method Nonconforming State Depreciation The State Depreciation link provides access to depreciation calculations for states that do not conform to federal depreciation rules If there 1s another reason why the asset does not qualify for the special state AT depreciation allowance 2009 Suburban 01 13 2009 5 bas
154. entered in this return click the New button to add the first asset 1 2 3 O NOU 9 Make sure that the Form is set to Schedule C This will open the Multiple box Verify that it is set to 1 Make sure the State is UT The state indicator is to enhance the automation of the sale of assets for state nonresident part year returns The default state will be the resident state The Zaxpayer Spouse Joint indicator drop down box is to enhance the automation of the Married Filing Joint vs Married Filing Separate computation Enter the Description as Laptop Computer It was purchased on 01 01 2011 The Cost was 2 832 The Current 179 is 2 832 The Type is Computer Systems 10 The Method should default to M5YR for MACRS 5 Year Click the New button to enter the details for the second asset ON OU h ON Make sure the Form is set to Schedule C This will open the Multiple box Set it to 1 Enter the Description as Chevy Suburban It was purchased on 06 01 2011 The Cost was 45 475 The Type is 6000 to 14000 GVW SUV Richard drove 25 000 business miles Because this is the first year the Suburban has been used the Asset Tracker will optimize between Standard Mileage Rate SMR and actual expenses Leave the choice on Optimal 46 9 The Method should default to M5YR Type is an optional entry You can select the Type by clicking the W lt gt button on the Type field or start typing 6000 to 14000 GVW SUV to u
155. er completing her degree Stephanie accepted a job offer in Utah The move was not covered by Stephanie s new employer They are therefore eligible to deduct certain moving expenses on Form 3903 A In the Forms pane click 3903 Form 3903 B Enter the miles from their old home to Stephanie s new workplace 677 miles C Enter the miles from their old home to Stephanie s old workplace 15 miles gt D gt G To see which expense qualifies for the deduction we could access the instructions for Form 3903 or Publication 521 Moving Expenses by pressing F1 for the Form Helps The help system has tabs for Government Instructions and Publications relevant to the active field in the input pane The Jones rented a U Haul truck and trailer for 1 072 They also paid 279 for boxes and moving supplies Include these on ine 1 You can use a detail statement on line I to indicate the two expenses or you can use the TaxWorks Calculator to add them together To use the calculator enter 1072 on ine 1 and then press the plus key on the keyboard When the calculator opens enter 279 and press Enter to auto matically paste the result to ine 1 They paid 129 for lodging during the move Include this on Zine 2 They paid a total of 130 for meals on the trip Since meals are a non deductible expense this amount cannot be claimed You can use the Notes feature of the program to explain this On line 2 press Control N to select
156. eral text at the top of the letter Word wrap the additional federal text to print on letter The Standard Filing Instruction Letter can be suppressed by checking the gt Suppress printing Standard Filing Instruction Letter box Instruction Letters 113 Custom Letters You have the ability to print both a Standard Filing Instruction Letter and a Custom Letter Standard Filing Instruction Letters are generated automatically Custom Letters will only print if indicated the File menu and select System Updates Check the Custom Letters gt You can update Custom Letters from the 2010 software To do so click box and click Update carry to the Custom Letter exactly as entered However this can be over gt By default the name and address on the General Information screen will Click to access the Custom letters screen Click to access the Custom Letters utility allowing you to 2132 create and edit Custom letters Check the box to print the Custom Letter 114 ridden if desired To generate Custom Letters from within a client s return select LTR Instr Ltr from the Forms pane Under the Custom Letters heading check the Print Custom Letter box El 1040Works 2011 testing 1040 Individual Wow Eile Edit View Forms Utilities Settings Workbench Installations Help od 5 4 5 5 9 a GIN o 0 EF Ctr Mgmt New STaR Clients Assets Fed State Detail Peek Review Audits PUPs Uplo
157. erent sets The mark is default ed in the program but can be edited Print Page Number The page number relating to the set will print in the upper right hand corner next to the page mark Client ID Date amp Time This prints the Client ID date and time at the bottom of each page Create a New Set 2 3 To create a new set click the New button on the Distribution Sets screen Give the new set a name Select a category from the drop down box 4a You may start with a blank set or Ab If you want to copy an existing set highlight the selection from the 5 6 Duplicate Set From drop down box Move the radio button to all forms tagged or no forms tagged Click OK gt You have the ability to move forms across groups Setting Print Defaults Before you print any returns verify your print options e We have provided tax soft fonts with our program Soft fonts are only required if you are using a Laser printer Soft fonts are automatically loaded before every print job sent to the printer If you never turn your printer off or if it goes into sleep mode the soft fonts will remain in the printer s memory If you turn your printer off fonts will be erased and will need to be reloaded To load tax soft fonts manually click the Installations menu and select Load Soft Fonts We have provided an application of Adobe Acrobat Reader version 9 with our program Adobe Acrobat Reader is requir
158. es at the discretion of the trustee no distributions of principal were made during the year The agreement contains no provi sions for contributions to charity Capital gains are allocated to principal and expenses are allocated to income Step 2 Start Up A Double click the Progam icon on your desktop B The tax program should automatically open to the Client Selection screen If not click the Clients button on the button bar Step 3 Folder Selection A Click the 1041 tab B For purposes of this tutorial we will use the Samples folder Click the Folder drop down box in the upper right hand corner of the Client Selection screen C Select Samples from the list of available folders If you did not install the sample returns during the initial installation you may not see a Samples folder listed To install the sample returns click the Utilities menu on the Client Selection screen and select Install Sample Returns Step 4 Client Selection A Since the Smith Trust return is new click the New Client button Step 5 New Client A The New Client screen will appear enabling you to initialize the client o gt To move from field to field use your mouse or press the Enter Tab or Arrow keys Press the Shift and Tab keys together to move back a field B Enter the Client Number as 1 C Enter the Client ID as SMITH4876 we have used the first five letters in the trust name and the last four digits of the EIN The C
159. es paid on prior transfers within ten years prorated for the time since the transfer The maximum is three entries c Schedules R and R 1 are used to calculate GST taxes Schedule U is used to report the Qualified Conservation Easement Exclusion 2 0 0 0 7777707050 Other Systems 937 709 Gift Tax Frequently Asked Questions 238 Q What is the due date for filing Form 709 and can I file an extension A The due date is April 15th of the tax year Extending the federal Form 1040 with Form 4868 automatically extends the federal Form 709 for six months If Form 1040 is not extended Form 8892 can be filed to extend Form 709 Form 8892 is also used as a payment voucher when Form 1040 is extended Q Can taxpayers and spouses file jointly A No Separate returns must be filed Information from one spouse s return is required on the other Separate returns will automatically gen erate if the box is checked for Will a gift tax return for this calendar year be filed by the spouse Information to Note Community property is automated if the address listed is a community property state Gift splitting is automated if the Do the donors consent box is checked Returns may be incorrect if the preparer tries to split gifts manually community property is calculated manually or one half of the gift amounts were entered manually on each return Other Products The tax software offers th
160. estion or enter your own in case you forget your password What is your favorite movie z Provide the answer Holes OK esc Help Enhancing Your Performance 85 86 Security Protect 1 2 Click the Protect tab Tag the items within the program which you want to protect and limit access to The Master Password is required when accessing areas tagged for protection Security Setup Password Login Preferences Protect With Master Password Client Management Restore from Backup L Delete in Client Management Custom Letters Control Data Custom Statuses r Preparers I Defaults r Invoice Settings and Discounts Distribution Sets Ri Delete Clients amp Folders E File Center a Common Forms Client File Editor n Support Tool Status UserlD Stamp iv Edit OH City Tax Info EF and Bank Settings r Initial Configuration wizard Folder Logging to Management OK esc Help Security Login 1 2 Click the Login tab If running on a network you can limit individual access to certain paths and folders To do this check the Require Users to Login upon Startup box A list with User IDs within the office will appear on the Login tab You can add or delete users using the corresponding buttons at the top of the screen Enter a password next to the user s name Make sure you inform the user of the password The password must consist of 5 12 c
161. et up groups from the Home page click Office Group Setup System 1040 Samples Mode off O on so AT RS Click Add New Group System 1040 Samples Mode ott O on Office Group Management Add New Group No office groups have been created Enter the Group Name and Group Description Click Add Offices to Group System i040 Wi Samples Mode off O on Office Group Management Adding New Office Group Group Name Group Description Tag desired offices to add to group and click Submit Office Group Management Adding New Office Group Office Selection full account listing Uncheck aj Filter accounts where Office Name V is Search Reset O 1040works FINAL CD LEVEL 2 1Qi3169 UT KAYSVILLE 1265 SPORTSPLEX DR O 1040WORKS FINAL CO LEVEL 3 1Q13170 UT KAYSVILLE 1265 SPORTSPLEX ORIVE O ALAN MAACKE 1915017 UT BOUNTIFUL 77 10005 E Annette nuu LQ13179 OW OUBLIN 545 METRO PLACE SOUTH STE 350 C Annerre nuu LQ15171 OH DUBLIN 545 METRO PLACE SOUTH STE 350 C 808 ourtscut iQi 181 UT KAYSVILLE 1265 SPORTSPLEX DRIVE O Bruce mccauLey LQIS816 NC FRANKLIN 45 MOSSY OAK ROAD C CENTER FOR ACCESSIBLE TECHNOLOGY LQIS106 CA BERKELEY 2347 STH STREET 12A O OANTVAL HAIDER 1Qi3180 UT KAYSVILLE 1263 SPORTSPLEX DRIVE M nasi a ai tette Aw Asa e vaveviis A banner will appear confirming that offices have been added to the group To add additional groups select the Office Views tab
162. ete the applicable information on Form 7004 5 Refer to the 1040 e file section and complete the creating and sending an e file return process 77777yvI Filing Returns Electronically 179 6 On the E File Center Overview screen select the applicable system 1065 1120 1120S Click the Business Extensions tab to access the e file returns Click the Send tab to send the return s to the Filing Center Form 8868 990 Extension 1 2 3 From the forms list select EF EF Options Complete the applicable information in the Electronic Filing section In the Extension section click the extension link to access the Form 8868 Input screen Complete the applicable information on Form 8868 Refer to the 1040 e file section and complete the creating and sending an e file return process On the E File Center Overview screen select the system 990 from the dropdown box Click the Other tab to access the e file returns Click the Send tab to send the return s to the Filing Center Sofrware Extension Drain Times View the latest e file drain times in the E File Center From the Overview screen click Drain Times in the Helpful Links box 990 E File The IRS has mandated that all 990 Exempt Organizations with assets of 10 million or more and filing 250 federal returns must file Form 990 electroni cally 180 The 990 e file process is similar to the 1040 1 2 3 From the forms lis
163. ets x Select Setto Edt p Curent Set Federa Paper Highlight the set to view or edit Select the desired System and State Click to expand each group and view the forms Click this button to create a custom set The Add New Set screen will appear Cent Copy Pt Shr Berf SchK 1s Other F r P F Print Page Number lent ID Date amp Time bottom amp i rex ok canon n Hee Add New Set E3 New Set Name Category Duplicate Set From C New set with all forms tagged to print and default sort C7 New set with no forms tagged to print and default sort K Cancel Help 126 Step By Step Customizing Sets 1 To customize sets click the Settings menu and select Distribution Sets 2 Highlight the desired set in the Select Set to Edit column 3 From the drop down boxes select the System and State 4 Tag the desired form groups in the selection box at the right Groups include Correspondence Federal Forms K 1 Forms Separately Filed Forms Worksheets Statements and Overflows 9999 State Forms 5 Click on the plus sign by the form group name to expand the group and view the forms available within each selected group 6 Tag the forms you want included in each group or untag forms you do not want included in the group Distribution Sets Select desired set to ed
164. etters and click the printer icon paste Ctrl V functions For example many preparers like to paste their logo into their letters Copy an image from another application Place your cursor where you would like the picture to appear in the letter and paste it in gt You may insert a picture into a Custom Letter using the copy Ctrl C and Other Letters We have given you the ability to print two other letters Privacy and Engagement Scroll to the Other Letters area at the bottom of the letter screen From the drop down box select the desired letter These will print as separate letters Other Letters can be defaulted for all clients Federal Extra Sections You have the option of adding three extra sections to the federal letter Scroll to the Federal Extra Sections area at the bottom of the letter screen We have included text for the following extra sections Inability to Pay Balance Due Charitable Contribution gt 250 and Other Services Provided These sections will print prior to the Closing section To include them select the desired letter from the drop down box Federal Extra Sections cannot be defaulted for all clients 200 5 eee Instruction Letters 117 Invoice Select the system MFS Split Worksheet 0 00 2 MFS Split Worksheet 0 00 Enter the 0 00 amount you Form 1040EZ Page 2 0 00 would like to charge for each form or sched ule Select to view and set state invoice options Click
165. eturn 221 Other Systems 2000 236 706 Estate Taxe te e onet rep Rees 236 7109 GIU VAR 4 uerb re eee t owes RE 238 Other Products 239 DIS M CTTTETTTTT TETTE 240 Hardware Requirements The following are hardware requirements and suggestions when running the program System Requirements Supported Operating Systems Windows 7 32 bit amp 64 bit Windows VISTA 32 bit amp 64 bit Windows XP Service Pack 3 32 bit Windows Server 2003 Service Pack 2 Windows Server 2008 32 bit and 64 bit Hardware Minimum Recommended Processor 2 0 GHz Dual Core Processor or better RAM 1 Gigabyte RAM 4 Gigabytes RAM Screen Area 1024 X 768 1280 X 1024 or better Internet Browser High speed DSL Cable High speed DSL Cable etc etc Internet Explorer 8 Internet Explorer 8 or better Scanners Twain Compliant Twain Compliant Printer Min16 MB RAM Min 32 MB Ram Software Prerequisites Microsoft NET Framework 4 0 To set the screen area click the Start button and select Control Panel In Classic View click the Display icon Click the Settings tab in the Display Properties window and adjust the screen resolution Click Apply to use the new screen settings and then click OK Printers The program has the ability to print using BubbleJet InkJet DeskJet and LaserJet printers However we highly recommend LaserJet printers with at least 15 pages per minute PPM and 8 MB or mor
166. eturn and Referral A The Client referred by field is used to track advertising effectiveness You can make any entry that you choose in this field It will remem ber previous entries and use the auto fill feature to help save time if the same entry is required on a later return Mr and Mrs Jones saw an advertisement in the Yellow Pages B The Return filed as field is used to indicate from the outset of the return what type of return you expect to file for the taxpayer Audits will be generated to warn you if inconsistencies are found in the data entered and the type of return requested Richard and Stephanie are expecting a refund and would like to have it directly deposited into their checking account They are not interested in filing electronically at this point Select Paper DD as the return type located under Return filed as C The Appointment fields are for your information only they will not print anywhere on the return You will be able to use these fields to help create a custom report in Client Management The Jones appointment was February 28 2012 at 4 00 pm The appointment lasted 60 minutes Direct Deposit Information Mr and Mrs Jones would like their tax refund deposited directly into their checking account They also would like to have the IRS contact you with any questions on the tax return A Scroll down to the Electronic Filing and Direct Deposit Information section Click the Direct Deposit and Electronic Funds
167. federal funded benef Tt may be useful to look at the Social security card to very its ve validity fore c Sa Was the taxpayer a nonresident alien for any part of the year K amp R 7 Could the taxpayer or the taxpayer s spouse if filing jointly be a qualifying child of another person in the current year PART II Taxpayers Without a Qualifying Child 16 Was the taxpayer s main home and the taxpayer s spouse if filing jointly in the United States for more than half the year E PART IV Due Diligence Requirements 20 Has Form 8867 been completed based on information provided by the taxpayer 22 Hasthere been compliance with the knowledge requirements KRR 23 Have the following records been kept o Form 8867 O EIC Worksheets Record of how when and from whom the information used to prepare the form and worksheet was obtained Date Information was obtained mmddyy rer forty aste The Taxpayer EIC Due Diligence questions can be answered quickly using Y for yes and N for no Date information fields will auto fill with today s date with one stroke of the letter T W 2 Wage and Tax Information Screen STaR Wizard Joe W 2 Wage and Tax Information tion gt Dependents e W 2 Filing Infon W 2 List m Taxpayer Spouse Fed Income Box1 FedWithhol ngBox2 State Withholding Box 17
168. fer to other E File Center items located in this section after Step 5 gt Correcting Rejects Step 3 Transmitting Returns 1 Click EF Ctr on the program button bar c EF Ctr Enter your User Name and Password Click Login From the System drop down box select 1040 A From the Overview screen click Send Clients In order to provide greater security and privacy in the E File Center all SSNs EINs are masked in an XXX XX 1234 format 5 Tag client e files that are ready for transmission If a client you want to transmit is not listed on the Send Clients screen return to Clients Open the client and make sure the File Federal Return Electronically box is checked Review the return and verify Form 8879 Click Create E File s to move the client to the Send Clients screen gt To remove a client from the Send Clients screen tag the client and click Delete 6 After clients are tagged click Send LLL Filing Returns Electronically 165 Click to print the Transmission e Report 7 Verify the transmission totals and click OK G 2 Windows Internet Explorer E3 9 TRANSMISSION TOTALS bw J jJ Federal Total 1 State Total 0 Bank Total 0 Click OK to continue with send OK Cancel 8 The transmission process will take place Returns will be sent to the Filing Center 9 After the transmission process the Transmission Report will appear V
169. figure 18 Download 18 Install 18 Manual Download 18 New Updates 20 Options 19 Settings 18 Systems 20 21 Upload 22 23 62 Client 23 62 135 138 To Account Folder 137 To Support Team 135 User ID 57 86 Utilities 38 64 120 123 Updating Clients See Proforma Verify 39 144 Verify Vital Data 39 View Menu 23 24 34 Vouchers 51 52 207 W 2 34 Employer Library 60 75 123 Prepare Return 143 Modernized EF 177 RAL 196 197 200 Cities 204 State 206 W 2G 206 Watermark 127 130 WebSite Adobe 8 Microsoft 7 IRS 142 147 180 183 Workbench Menu 120 Security 85 89 Workspace 22 24 Forms Pane 24 27 Idle Mode 22 58 63 134 Input Mode 61 63 Output Pane 22 32 55 Reset Desk 24 Review 23 25 34 54 55 62 64 77 81 82 92 117 126 129 149 218 220 234 235 Summary Pane Workstation 18 Zero Preparation Fee 194 Zip Codes 37 38 71 211 222 Index 245 2011 Menu Summary Ss New Client VY STaR Wizard a Clients F12 am Close Client Fal Save amp Client Management 1 Status Drawer Ctrl F Ctrl System Updates Ju BackUp ag Restore 2 E File Center Export EF XML Data Bl vos TaxPlanner 5 Refund Calculator aN Convert clients 1 1040 Winter Cris 2 1040 WILLIAMSON JACK 3 1040 Brady Michael ES Exit Alt FA Edit e Cut Ctrl X Copy Ctrl C a Paste Ctrl V Clear Text Ctrl Y X Erase Form F9 Settings nm Control Data gt EF Settings w Printer a
170. for SMR can be entered it will update from year to year D Parking and Tolls Gasoline and Oil Repairs and Other are all reported on the Auto or Vehicle Expense line on the form where depreciation is reported Interest and Lease expenses also carry to the appropriate lines on the return E The Options drop down box provides the following options related to passenger automobile limitations O Not Applicable Standard passenger automobile limitations apply 1 Suppress Passenger Auto Limit No passenger automobile limita tions apply typically for vehicles over 6 000 pounds gross vehicle weight 2 Electric Vehicle Limitations Higher passenger automobile limita tions apply for qualified electric vehicles The higher limitations do not apply to vehicles placed in service after Dec 31 2006 3 Trucks and Vans Slightly higher limitations for trucks and minivans placed in service on or after January 1 2003 See the instructions to Form 4562 for additional information 4 6000 to 14000 GVW SUV 179 limitation only No passenger automobile limitations Section 179 expense is limited to 25 000 for vehicles placed in service after October 22 2004 and actual expenses the first year a vehicle 1s placed in service on 1040 returns If actual expenses are greater than SMR actual expenses will be used To force SMR do so in the Method Selected drop down box gt The Asset Tracker will optimize between Standard Mileage Rate SMR
171. fore overwriting client files if they exist Comments Exclude clients whose status as update Renumber Clients during proforma Vv Proforma Tax Preparation Fee 1040 Sch from last year s invoice Enhancing Your Performance 59 The Proforma feature has the same sorting capabilities as Client Selection See the Client Selection Screen section gt If applicable K 1s will be logged during the update process 4 Tag the 2010 clients you want to update and click the Proforma button A progress bar will indicate the update progression Click Close when the process is complete Updating System Files Some of the information you entered in the 2010 program is applicable for the 2011 program You can update the Employer Library Preparer Data Custom Letters Libraries Invoice and Discount Library Defaults Custom Slip Sheets RTN Library Distribution Sets and Custom Statuses This will save reentry of data gt This process may also be accomplished during the initial configuration 1 Click the File menu and select System Updates 2 Tag the system settings you want to update 3 Verify the data path where the 2010 program is located 4 Click Update The 2010 settings will be updated into the 2011 program Click Close when the update is complete System Updates Custom Letters Libraries Invoice amp Discount Library J Defaults Custom Sl
172. g a new password mm e Lom Step 14 Verify that the correct printer is selected in the Printer drop down box Click Next to continue Start Page Serial Number Firm Data Page 1 Firm Data Page 2 Security Security Page 2 Security Page 3 Printer Printer Choose which printer you will use to print tax forms if other than your windows default printer Printer HPlaseet2430RQl6 0 cL v Step 15 If the 2010 program is installed on your computer check the boxes for the system options you wish to update Verify the System Update path Click Next to continue If the 2010 program is not installed on this computer click Next to continue Start Page System Updates Serial Number 1f you used the software last year you can update many of your settings Please select the items that you would like to update below Firm Data Page 1 Firm Data Page 2 Taga LlEmployer Library age ETT C Preparer Data Untag All Custom Letters Security IElLibrories invoice and Discount Library Security Page 2 C Defaults E Custom Slip Sheets RTN Library E Distribution Sets custom Statuses Printer E dient Selection Security Page 3 System Updates Update from 2010 Settings Path Step 16 The next initial configuration wizard sccreens show new features and wording changes adde
173. g split Review the dialog and click Close Forms Schedules Inputs Screens that are Split for 2009 program Forms schedules input screens not included on this list will carry to both the taxpayer and spouse MFS returns therefore manual adjustments are necessary Form 1040 through line 44 Tax Form W 2 2G Form 1099 R G M Schedule A Schedule B Schedule C T S only cannot spli a joint 829 Schedule E pg 1 only Schedule E pg 2 if entered on K 1 s Form 4835 Form ES payments only Form 2108 2106E2 Form 4562 if entered in the Asset Manager only Form 4684 Form 4797 page 1 Form 4797 page 2 if T S only cannot spit a joint Gl input screen PO input screen INV input screen Dl input screen EF 8453 input screen Letter input sereen Clergy input screen Disaster input screen 1040 pg 1 and 2 if they use the separate inputs on those screens SSA input screen Retirement input screen SE ie 7 Click Clients on the button bar and open the MFS Spouse return 8 In the Forms pane click 1 1040 Pg 1 Verify that line 17 shows 1 000 and line 18 shows 500 This feature should be a great time saver Data Paths The program gives you flexibility in storing client files Instead of limiting you to a drive letter you can define any path for your client files including UNC paths UNC stands for Universal Naming Convention This allows you to specify network file paths without using drive
174. g the return These must be retained by the ERO for 3 years 1120 11208 IRS E File Application To participate in the IRS 1120 11208 e file program you must file Form 8633 with the IRS Check box 1120 under question 4 The easi est way to apply is through IRS e services at http www irs gov taxpros article 0 id 109646 00 html a Filing Returns Electronically 183 5500 E File 184 The IRS has mandated that all 5500 returns be filed electronically The 5500 e file returns go to the E File Center Returns are then passed to EFAST2 ERISA Filing Acceptance System 2 versus IRS E Filing the Return B You must register for EFAST2 electronic credentials through www efast dol gov in order to receive the required ID number B The Administrator Signer ID Sponsor Signer ID and DFE Signer ID are 8 digits the first character is alpha followed by 7 numbers The ID number is issued by EFAST2 It must remain constant for all 5500 e filed returns B The Administrator PIN Sponsor PIN and DFE PIN are 4 digits all numbers The PIN is issued by EFAST2 It must remain constant for all 5500 e filed returns B From the forms list select EF Ef Options Complete applicable information B Click Create E File s button after reviewing the return Reference Step 1 Preparing the Return B No signature document is required E File Center B On the E File Center Overview screen select 5500 from the System drop down box to access the
175. g up a master password and logins for each user You may skip this section by selecting the Disable Security option If you select to disable security click Next and skip to Step 14 We recommend that security be enabled If you want to enable security select Enable Security and click Next to continue Start Page Security Serial Number Security in 2011 will allow you to require logins and limit access to some features in the software Firm Data Page 1 Important Note We recommend that you turn on the Security feature and require individuals to login before using this tax preparation software Doing so can help prevent unauthorized individuals from accessing your client s private Firm Data Page 2 financial information The Financial Modernization Act of 1999 also known as the Gramm Leach Bliley Act includes provisions to protect consumers personal financial information held by financial institutions Financial institutions which indude banks security firms and companies providing other financial services such as Security individual tax return preparation are required to make every effort to keep their clients personal financial data secure Enable Security recommended O Disable Security m D g Step 12 Enter in and then confirm the master password Select a security question and enter your answer Click Next to continue Start Page Security Page
176. git PIN Personal Identification Number If the taxpayer and spouse entered the PIN tab to the Taxpayer Spouse entered PIN box and hit the SPACE BAR This will check the box If you entered the PIN s do not check this box The Signature Date can be auto filled with today s date by hitting the T key 2000 5 8 0 0 0 OOO Enhancing Your Performance 75 Arrow down to desired form Miri td Do you have any of the following an d press Enter to access 1 any of these tems are selected addtional information must be entered on the tax return to corractiy clcte the additional income or potential ion Additional Income Deductions Miscellaneous Income Dist from Pensions Annuities Alimony Paid Retirement Student Loan Interest Other 1099 Forms IRA Contributions Alimony Received Education Expense Taxpaver Social Security Income 1099 SSA Education Expense Spouse Interest and Dividend Income Education Expense Dependent Other Income Jury Duty Prizes Awards Daycare Expense Gambling Earnings W2 G Itemized Expenses Capital Gains Sale of stock or property Medical Expenses Home Mortgage Interest Other Heme Charitable Contributions Application for ITIN Gambling Losses Profit or Loss from Business Employee Business Expense Business Use of Home Moving Expenses Cose Q Click the green arrow to m return to the Income or Financial Products To enter financial product information select the Click here to fill out financial products link
177. grades for the software should reside You may click Browse to find the location on your network Please note this location as you will need it to configure subsequent computers Click Next once the location has been entered Initial Configuration Wizard E3 Shared Data Location etwork Setup You have chosen to setup the 2011 program on a network Where would you like to save the clients tax return kt information on your networ Location of Shared Data i aree J Back Next Cancel Step 5 If the initial configuration wizard has not completed a scan of Step 6 your network you may see a screen indicating the system con figuration is taking place Allow the scan to complete before continuing If the software was able to find and connect with the Tax Prep Software s 2010 database you will be taken to the serial number entry screen Skip to Step 8 If the program was NOT able to connect automatically to a database continue to the next step If more than one database is available on your network you will be presented with a list of existing database instances Review the list of Database Names and select the best one to connect to The database name consists of the machine name a backslash 1 e X and the database instance on that machine Click Test Connection on the row of the database you want to connect to If the user name and password are not known to the program you
178. grids for interest Basic and Advanced The Interest Income Advanced grid allows entry for items such as a bank account number foreign taxes paid investment expenses and withholdings We want to enter the account number so click the Interest Income Advanced grid to enter Richard s interest B Enter the following information Richard received a Form 1099 INT from Barnes Bank account number 5678877 with interest income of 274 Richard and Stephanie received a Form 1099 INT from California Union Bank account number 11234 with 303 of interest income This interest was earned while the Jones family lived in California so enter CA in the State column The state defaults to the state entered on the federal General Information screen Click the Close button This will return you to the Schedule B Interest and Ordinary Dividends input screen Dividends A The Schedule B Interest and Ordinary Dividends input screen also has a Basic grid and an Advanced grid for dividends For the information provided the Basic grid 1s sufficient so click on the Dividend Income Basic grid to enter the following 1099 DIV information The Jones received a Form 1099 DIV from Investors Growth Fund It showed 375 of ordinary dividends of which all were qualified and 225 of capital gain dividends B Click the Close button C Click the green arrow button at the left of the input form control bar to return to the General Information screen We
179. h menu and select Security 2 Click the I Forgot button 3 You will be asked to provide the answer to the question you selected when you set up security If you are able to answer the question you will be allowed to enter a new Master Password Re enter the password to ensure you have entered it correctly Click OK You will be prompted with a message noting the Master Password was changed 4 Use the Forgot option if you want to change your Master Password amp gt amp Security Login E3 Please answer the following question What is your favorite movie Provide the answer Provide the new Master Password Repeat Master Password Forgot OK Cancel Help you must call TaxWorks Support for assistance If you forget both the Master Password and the answer to your question Client Status igi Status Client status is used for inhouse tracking purposes You can track and view the progress of a client s return and note any comments Status To change the status for one client click Status on the button bar while in the client s return While on the Status tab click the drop down box and select the desired status The Date and ID fields will auto fill To create a custom status from the Status screen click the Custom Statuses button Enter the name of the custom status and click Add The custom status will appear on the screen and will be added to the drop down box To remove a status c
180. haracters and is case sensitive Check the Limited box if desired If the user is Limited select the Data Path Name the user will be able to access Limited users only have access to the Common Forms tab on the Forms pane They can only use the Clients Assets Fed and State buttons located on the but ton bar By setting up logins that require passwords user specific settings in Control Printers Colors and EF and Bank Settings move from com puter to computer with the individual user rr re Password Protect Logn Preferences ird ipea iore MEET Delete User UsedD Password Limited Data Path Name ml Note The current user s password has been defaulted to the new master password logging into the program When the program is opened after Security has been set the Login screen will appear You have the option of logging in as a specific user which will allow you to open the program and prepare returns or you can input the Master Password which only allows you to edit the Security settings You will not be able to open the program if you only input the Master Password BugwwiwoWenRn tg Enter your usemame and password and press enter to login to 1040Works 2011 The master password may be used to access the security ccSettings gt You must set a password for each individual user This is required when User Password 2548378 l C Master Password p
181. he Dependent Information grid to enter the dependents C Enter the following information Their son Trevor was born 06 15 2004 His SSN is 646 67 2973 Their daughter Anna was born 04 05 2006 Her SSN is 646 89 4649 If the last name of each dependent is the same as the taxpayer s an entry is not required j The program defaults to 12 months in the home and assumes the depen 3 dent lived with the taxpayer unless an entry indicating the contrary is gt Pe in the Mos in Home column or an overriding entry is made on the Dependent screen Since both parents work the children are enrolled in a daycare program Richard and Stephanie paid 3 900 for Trevor and 4 160 for Anna s daycare expenses Enter the amounts in the Child Care Exp column for each child The Status drop down box is used to indicate special dependent situations If the exemption is not allowed for the dependent but the child still quali fies for the Dependent Care Benefits Earned Income Credit or Head of gt Household filing status select the appropriate status The status can also be used in a divorce situation when the parents alternate years of claiming the child as a dependent without deleting the child s information Since Richard and Stephanie are claiming both children no action is required in the Status drop down box E The bottom half of the dependent grid is used for EIC purposes and relates to Form 8867 Paid Preparers Earned Income
182. he Windows clipboard holds the information allowing users to copy and paste data from sources outside of the program 30 Delete Clear Text and Erase Form are additional edit utilities Ctrl Y or the delete key will clear text in the highlighted field F9 will erase the entire form you have accessed Ctrl F9 erases all entries on a high lighted line Client Number Using client numbers is optional To avoid using the client number check the Suppress Client Numbering box in the lower left corner of the New Client screen within Client Selection or within the Settings Menu click the Control Data button click the Switches tab and check the Hide Client Number in Client Selection box Super Grids Areas in the program that have multiple lines and fields for the same item have super grids You can also import Excel files into any super grid Make sure the spreadsheet columns correspond to the super grid Click the column header TIRE x and then click Sort Rows will change according to the sort selection First Name Tat Name Birthdate Age SSN Relationship us pem Student eighe 15 11 26 2005 6111111111 Daughter TOU 05 23 2007 4 222 22 2222 son W 2 Cora Jonas Click to save and close the grid and return to the input screen ee G G O PALME PAL MUERE ise Joint is assumed if left blank Simple Grids Areas in the program that ha
183. he preparer will be assessed a 50 penalty for each acceptable individual income tax return that is prepared using software and not filed by the preparer electronically unless the failure to file electronically is due to reasonable cause and not due to willful neglect The tax preparer would then not be subject to the penalty if the taxpayer elects not to e file the tax return CT Connecticut legislation requires preparers who prepared 50 or more income tax returns in the previous calendar year to file all personal income tax returns electronically FL If you paid 20 000 or more in tax during Florida s fiscal year July 1 June 30 you must electronically file and pay Florida corporate income tax GA All 1120 State returns must be e filed IN Preparers who prepared 100 individual income tax returns in the previ ous tax filing season are required to electronically file all individual income tax returns KS Preparers who prepare more than 50 Kansas Individual Income tax returns during any calendar year must electronically file a minimum of 90 of the returns There is currently no opt out provision However the man date does not have a penalty for failure to comply with the electronic filing requirement LA Preparers who prepare more than 100 individual returns in any cal endar year are required to e file 60 percent of the returns due on or after January 1 2010 and 90 percent due January 1 2012 MA 1040 Pre
184. i e Applied Review and launch audit diagnostics from filing information screen Exit STaR Wizard Exit STaR Wizard Married Filing Separate The software has the ability to produce a Married Filing Separate return for both the taxpayer and spouse in addition to the Married Filing Joint return A Married Filing Joint vs Married Filing Separate Worksheet can also be produced to determine which filing status is more beneficial before you choose to split the returns State returns will be produced to agree with the federal filing status All state entries made on the Married Filing Joint return will be allocated 100 to the taxpayer s state Married Filing Separate return with the exception of Ohio The Ohio state system has the ability to allocate state entries This enhancement will be in other state systems in future years Audits Helps and popups provide information relating to the split process Following are the steps to allocate items of income deduction between taxpayer spouse or 50 50 joint and to split a Married Filing Joint return through designated inputs the Married Filing Separate Worksheet and or Utilities Split Return Designated Inputs Inputs on the MFJ return can be designated as taxpayer T spouse S or 50 50 joint J This is accomplished by using several types of input entries applicable to the form or schedule B Screen inputs for fields having separate input fields for taxpayer a
185. iew print e mail or save the report as PDF Click Close to return to the Send Clients screen EFCenter Reports Windows Internet Explorer EmailReport i Export to Excel 1 41 7 1 LER rina Transmission Date 11 18 2011 Start The E File Center eso em Teks pes assigns a confirma Transmission Number 97 Printed 11 18 2011 ti b li Name SEN DCN URS MeF FedAmi State STAmt BankFee Confirmatio ton number vali gore oemuba oce oro us vm eremo dating the return CTC TAXPAYER amp yooc0C7e88 oor777e1000000 US 2476 676383 was transmitted ERE successfully Step 4 Handling Acknowledgments 166 Acknowledgments will automatically appear in the E File Center when available MeF acknowledgments take between 5 minutes and one hour Legacy 1040 and direct state acknowledgments take 4 to 12 hours State Only and Piggyback state acknowledgments are received approximately 48 to 72 hours after transmitting 1 Click EF Ctr on the button bar 2 Enter your User Name and Password Click Login 3 From the System drop down box select 1040 4 Click the Acknowledgements button or click Acknowledgements under the New section Aocount Overview Send Chents PA Database Bank Reports Acknowledgements Transmission Date Tran Number Total New Pending 4 21 2011 327 59 PM 27 2 2 o 4 21 2011 3 12 57 PM 26 2 9 I 4 21 2011 1 19 11 PM 1 o o 0 Ed Ha fesPagesize 2 and
186. igned by the taxpayer Form 8879 can be provided to the taxpayer personally by mail or by fax Form 8879 must be returned to the ERO before the return is e filed The ERO must retain Form 8879 for 3 years The ERO can provide a copy of Form 8879 to the taxpayer upon request If corrections must be made to Form 8879 due to changes or rejections a new Form 8879 must be used LLL Filing Returns Electronically 153 Self Select PIN Program Self Select Pin information is entered on the EF E File screen Use Self Select Pin Check the Yes box to elect to use the Self Select Pin program Taxpayer Spouse Prior Year PIN Enter the taxpayer and spouse PIN from the prior year Taxpayer Spouse Prior Year AGI Enter the taxpayer and spouse adjusted gross income from the prior year tax return If you filed Married Filing Joint or the spouse did not work the tax payer and spouse AGIs should match Prior year PIN and AGI amounts will carry forward during the update process if applicable Those who forget their client s PIN and prior year AGI can go to the IRS website and by submitting the client s personal information birthdate SSN etc will receive a Token containing the client s prior year PIN and AGI Taxpayer Spouse PINs The taxpayer and spouse can select their own PINs Each is composed of 5 dig its All zeros are not permitted The taxpayer and spouse PINs can be the same ERO PIN The ERO must select a PIN
187. iling Screen We are pleased to introduce a standard business e file options screen The screen can be accessed by selecting EF EF Options in the forms pane list when entering federal or state tax data Reference the Electronic Filing section for more details ies Settings Workbench netalatinns Help i m 2 gt o T Assets Fed State Detail Peek Review Audits PUPS Upload Status 5 gt EF Ctr Momi New STaR Glents OL Mra ve n Fes El Federal 4120 Electronic Filing Options Electronic Filing 0c Taxpayer PN TE 200 5 5 0 eee Business Systems 909 1041 Sample Return 210 Dan Smith and his eldest son Alan have come into your office to have Dan s fiduciary tax return prepared Let s prepare a fiduciary return for the Smith Trust and learn about some of the features in the tax program Step 1 Background Information Dan created the Smith Trust EIN 87 1454876 on February 19 2001 to set aside money for education for his sons Alan SSN 847 45 6800 and Josh SSN 748 54 7847 Alan s address is 136 East Main Street in Glendale AZ 85308 Josh s address is 1210 East Brown Road in Chandler AZ 85286 Alan serves as a trustee of the trust The trust agreement requires that all income be distributed equally between the two beneficiaries annually Although the trust permits distributions of principal to the beneficiari
188. ilitated by the Software you shall be solely responsible for i developing any additional consent forms as required by 87216 ii properly obtaining the tax payer s signature on such consent forms when required and iii and retaining the executed consent form s with the taxpayer s file Upon reasonable notice and dur ing normal working hours you shall allow representatives of Licensor to inspect your compliance with 7216 solely as it relates to your use of the Software Fees and Payment Per Unit Processing PUP and Electronic Filing EF invoices if any are due and payable upon receipt If payment is not received within thirty 30 calendar days of the invoice date Licensor shall have the right to restrict your account from Software updates alerts PUP and EF services until full payment is received Other A Governing Law Forum This Agreement shall be governed by the laws of the state determined at the sole discretion of Licensor without regard to choice of law or conflicts of law provisions Licensor and you agree that the exclusive jurisdiction of any dispute arising out of or relating to this Agreement or any dis pute arising out of or relating to the Software or services provided in connection therewith shall be in the courts located in the county To be determined at the sole discretion of Licensor B Entire Agreement This Agreement is the entire and exclusive agreement between the parties with respect to the subje
189. ing phone number Click the W button on the drop down box next to the phone numbers to make the appropriate selections The daytime phone number will not print on the return unless you have selected this on the Preparer Options screen Stephanie finished her degree earlier this year enter an education expense of 3 500 in her Tuition and fees field In addition to tuition she paid 1 100 for books and other school supplies Enter this in her AOC expenses field Select Force Lifetime from the Credit type drop down box F They live in Davis County This should have auto filled based on the ZIP Code selected on the New Client screen G The school district name is Davis The school district number is 07 This information also should have auto filled based on the ZIP Code selected on the New Client screen H For this tutorial enter your own firm s email address on the TP e mail address line We will use this email address later in the tutorial Do not 38 enter an e mail address for Stephanie at this time Step 7 Filing Status Dependents Earned Income Credit and Child Care Credit A Scroll down to the Filing Status field Because this is a joint return and Stephanie s information has already been entered no entry is necessary To override the default filing status select the proper code from the codes on the right and enter it in the ine number box lt gt Mr and Mrs Jones have two children Trevor and Anna Click t
190. ing reentry of limited data The 2010 data will remain intact for use in the 2010 program Find By Client ID Client No Client ID TP Last Name oOo 00000 AM 1010 Robertsen T 00001 SAMPLE 02 Johnson T 00000 SAMPLE 03 Brady 00000 SAMPLE 04 WILLIAMSON T 00000 SAMPLE 05 WOOD 00000 SAMPLE 06 Doe T 00000 SAMPLE 07 THOMPSON 00092 SAMPLE 09 ANDERSON f nnnm QAMADI ENA DOW FL ADIT Total Clients 23 a Proforma 1040 Individual from 10 to 11 JJ ES File Utilities Help Ja Proforma Data Path Name My Tax Files Folder All Folders TP First Name Stephen Robert Michael JACK FLOYD John FRANK TODD IFEEREV SP First Name Emily Deborah Carol WIONA MIRIAM YANYA MARTHA JANICE 1 ARTANINIE Sorted by Client ID 1l Click Clients on the button bar to open the Client Selection screen Select the Data Path Name and Folder where the 2011 clients will be stored Click the Proforma button A Proforma Organizer screen will appear Read and click OK Select the Data Path Name and Folder location of the 2010 clients After locating the 2010 files click Utilities and select Options Tag the items you want included in the update process and click OK x Client Proforma Options Please choose those items that you wantto proforma with each client Proforma Options IV Depreciation Detail Statements Notes fy Notify be
191. input screen click the Next button to access the second K 1 Notice that at the top of the input screen next to the Prior and Next but tons we see 2 of 2 Enter Susan L Baker as the Partner s name top line Enter Susan s Street Address as 10 Orange Street Enter the ZIP code as 20904 Select Silver Spring as the city Enter Susan s SSN as 546 01 3333 If you peek the form you will notice for item G that the box for General partner is automatically checked on the form because this is a General Partnership Click Peek to return to the input screen J Select 7 Individual Active from the drop down box for the Type of entity field on item I Ee 1065 Sample Return 231 232 K Enter 50 in the Master Default field for item J since Susan s per centage of profit sharing loss sharing and ownership of capital is 50 L Enter 13 500 for Susan s Beginning Capital for item L Partner s capital account analysis The remaining amounts from item L are automatically computed In the subsequent year you need not enter the beginning capital account because the ending capital account for the prior year will update to the beginning capital account for the subsequent year M Enter 5 000 on line 4 Guaranteed Payments to Partner of part II for Susan s guaranteed payment Susan s guaranteed payment and her share of ordinary income will be subject to Self Employment Tax The pro gram will carry the self employment earni
192. into id Save Copies Ga Set Set 2 Seta Set 4 Seis Set amp bel ed el vel t Le F file will be saved with a password consistir ies payer s last name or company name fist 4 letters of the city of resider zase and with no spaces To set the Settings Sets Defaults Use Defauts SetDefauts ClearAll Preview seu Gee me There are two methods of form delivery print and save Check the box found next to each method to activate the selection Uncheck the box to deactivate the selection B Print allows you to select which sets and how many copies of each set you would like to print You can choose up to six sets from the drop down boxes W Save allows you to save specific sets of your client s return You may choose the path where you will save the file and the filename There are several buttons located at the bottom of the Advanced Form Delivery screen B Settings links to the Printer amp Delivery Settings screen where you may change printer options and adjust any defaults for Advanced Form Delivery B Sets links to the Distribution Sets screen where you can adjust exist ing sets to meet your needs or create your own custom Distribution Sets by clicking the New button B Defaults links to the Defaults for Advanced Form Delivery tab within Printer amp Delivery Settings where you can set th
193. ion History You will link to a screen asking you to enter various report limitations Select the report by SSN date range type and status and sort by options Click View to create and view the report You can print e mail export to Excel or save the report in PDF o 0 0 CC7UUUU A NN Filing Returns Electronically 171 iew Send Clients Acks Database Bank Reports system 1040 v Sandd T Samples Mode ott 8 On Reports Acknowledgements Ossn all Last Name Federal Only ISSN O State Only D Date Yearto Date V AI Ascending ron STEED 8918887 O Accepted Descending ORejected A report listing clients Marked for E File Not Transmitted 1s available in gt the program Click the Mgmt button and select Reports E File Center Archive After viewing alerts transmissions acknowledgments and bank reports you may want to archive them for later access Archiving Items For our example we will archive an acknowledgment report From the Overview screen click the Acknowledgements button Tag a report and click the Archive button The acknowledgment will be moved to an archive location Click OK Accessing Archived Items From the Overview screen click the Reports button Select the archived item you want to access You will link to a grid allowing you to view and print archived items Account
194. ion box Vital Data fields include SSN and Name control for taxpayer and spouse on a new client SSN and birthday for dependents EIN SSN Wages and Withholding on W 2s and EIN SSN Gross Distribution Taxable Code and Withholding for federal and state on 1099Rs Paste Amounts Import K 1 These buttons appear on two screens 1040X and K 1 Received Click the Paste to Original Tax Paid Overpayment button on the 1040X screen The program will fill in the amounts from the original return Be sure to use this feature before mak ing changes to amend the return The Import K 1 button will appear when accessing the K 1 Received form if the corresponding business return was entered in the program The software identifies the EIN and the Import K 1 button is automati cally active Click the Import K 1 button and select the K 1 to import the data Help This button has been added to many of the screens Click Help or to open a help document relating to the area of the software you are working with Help documents contain several tips and other useful information Close Close is used to exit the current client drop down menu or screen Close will not exit the program Reference the Utilities Settings and Workbench Menus section of this lt gt manual for other helpful hints General Instructions 35 1040 Sample Return Richard and Stephanie Jones have recently moved into the area and have just come into
195. ip Sheets Envelopes RTN Library Distribution Sets Custom Statuses Client Selection Update from 2010 Settings Path ESTAXPREPATYTONSETTINGSS Update Close esc Help You must be able to access the 2010 program drive to perform System T Updates 60 Client Selection Screen gt a Clients oie d gt The Client Selection screen gives you flexibility when managing your client files It also gives you many choices when customizing your work space Determine how you would like to organize sort and find your client files Customize the information displayed on the Client Selection screen You can also define any path for your client files including UNC paths UNC stands for Universal Naming Convention This allows you to specify network file paths without using drive mappings Getting Started Click the Clients button on the button bar or click the File menu and select Clients This will open the Client Selection screen Client files are divided by system Click on any of the system tabs to view clients for the system selected Files are further organized by data paths and folders Use the Data Path Name drop down box to view the clients in each data path Within each data path you can create folders to further organize your clients For information about creating or changing data paths refer ence the Data Paths section The Find by option gives you a quick way to search for
196. is Federal California stat Special Depreciation Allowance and State Calculations A If the asset does not Original Use First use of the asset whether or nat by the taxpayer No meet the Original Qualifies for Federal Special Depreciation Allowance ores California depreciation is the same as federal depreciation except for Federal T fves Us e Test to qualify Special Depreciation c remi for the special depre ciation allowance Cost 45858 45858 pan s is Current Sec 179 a or Federa ecia check the Original meee mI di Use box No Et i m Depreciation Allowance uci Spec Allow E b OX C Select the state fro prod f the tree to view that Salvage Value If there isa difference a Basis 6665 38331 state s depreciation dee Ex SR between federal and state Period z g b depreciation besides calculation Convention HY HY bd f a ad P a s Percent from Table 32 EB the special depreciation Current Depreciation 2133 12266 Prior Depreciation 8 1353 7666 5750 allowance uncheck the Accumulated Dep es 19882 box to activate the State Unrecovered Basis 3199 18399 J Override Current co lumn E Click OK to return to the General tab Vehicle Tab The Vehicle tab gathers additional information about automobiles A Enter any business mileage commuting mileage
197. it j Select Set to Edt Curent Set Federal Paper m go Paper Filing System 1040 T ederal Paper mic Select the system and state Note To move a form left click it with the mouse While holding iy Paper the left mouse button ed fhe tain a Ibe donec inc Bir The Select desired forms ia move up down buttons below can also be used reaa DERRE group Click to tag and Pa Siats Besos E a EF Signature 8878 untag all forms within the a Bmeew Preparer Fle 2 3465 group cient 2 10402 Pat Frew Bersenkis Brune zu Click to reset the forms to EM 10404 Pg 2 1040 55 Page 1 3040 55 Page 2 1040 55 Page 3 EZ 104055 Page 4 EZ 1040R Page 1 factory settings i Enorme Click to apply the changes E eer that were made Ez 104088 Po 2 Ez 104088 Po 3 EZ 1040NR Po 4 IZ 1040NR Po 5 12210 Pa1 m Separator Page Upper Page Mark r Piint Page Number r Chert ID Date Time botom IT J ok concet iv We 7 There are additional options found in the bottom left hand corner of the Distribution Sets screen Watermark Type the description you want to print as a water mark on the forms Separator Page This prints a cover page for separating each print set Print Features 127 Upper Page Mark This prints a mark in the upper right hand cor ner of the form to easily identify diff
198. ividual Partnership Fiduciary If a practitioner filed a total of 4 NY state returns for individual partnership and fiduciary or uses tax software to prepare one or more returns they must file all of their returns electroni cally A 50 penalty applies to each return or extension that they fail to e file The taxpayer will be assessed a 25 penalty for not e filing Preparers may not charge a separate e file fee Corporate The new mandate requires tax return preparers who meet certain requirements to e file authorized tax documents The mandate also requires electronic payment of the balance due on any authorized tax document 188 There are two parts to this mandate Part I If a preparer prepares over 100 corporate business documents then they must file their corporate returns electronically The following are con sidered corporate business documents and figure into the threshold for the mandate Estimated payments Extensions and Corporate return So the actual threshold could be as low as 17 corporate returns for a practitioner if they filed 4 estimated payments the extension and the return Part II If a business files their own return and they use tax software that has been approved for corporate electronic filing they must file their return electronically A 50 penalty applies to each document that they fail to e file unless the taxpayer opted out of e filing or they have other reasonable cause for failure to com
199. k the None box for each class that the taxpayer elects out of Check the box for all classes if the taxpayer does not want to claim the 50 allowance on any assets for the current year B Click OK to close the Elections screen C If the elections have changed the Asset Tracker will recalculate all of the assets to apply the elections D The election statement s will be available to print when you review the return The elections are client specific Section 179 Information 106 Click the 179 button to access all of the 179 information Select the form Enter the multiple number or use Lookup to choose the multiple Carryover Enter any 179 carryover that was disallowed in prior years 179 Information Carryover of Disallowed 179 Deduction Form Schedule Multiple 01 Lookup Lookup Lookup Enter the amount of the carryover Click OK to return to the Asset Tracker I a4 Lookup Lookup Lookup Lookup Lookup Lookup Lookup OK Cancel esc Disallowed 179 informa update process gt tion is automatically carried forward from the previous year during the Enhancing Your Performance 107 Depreciation Reports A To view and print depreciation reports click the Review button on the main tool bar B Close the Audit Diagnostics screen C In the Form box scroll to the report you are searching for Click on the report you would like to view
200. l business includ ing product or service field and click the W button to display the avail able options Click the plus sign in front of Professional Scientific amp Technical Services Select Computer systems design amp related services C Once you select the principal business the business code 541510 for this return is automatically populated from the library D Richard s business name is Jones Computer Consulting Notice that once you enter the business name it carries to the multiple drop down box at the top of the input screen E Richard runs his business out of his home The address from Form 1040 will carry automatically F Richard uses the cash method of accounting No entry is necessary as this 1s the default G Jones Computer Consulting had gross receipts of 112 742 H Enter Richard s expenses by clicking on the appropriate lines Advertising ccce seen 1 755 Legal professional sves 2i ees 1 386 Office expense c c eee 912 SUDDlies eese deed s 422 TVOVOL aciem tree dovete d dope 3 079 Meals and entertainment limited 50 1 258 total amount Enter Richard s Cost of Goods Sold information as follows Richard uses the cost method to value closing inventory No entry is necessary because the cost method is the default method Beginning inventory ccce eee 0 Purchases ortceesud det Caterina 43 429 Ending inventory cec 0 J Enter Richard s Miscellaneous e
201. lectronically 151 gt State E File Defaults Refer to Helpful E File Tools at the end of Step 1 for details on setting state e file defaults Reference State E File Information for detailed individual state require ments This can be accessed by clicking the EF Ctr button From the Overview screen select State EF Information under S ate Links Personal Identification Number PIN There are two PIN programs Practitioner PIN will generate Form 8879 and must be retained by the ERO for 3 years The Self Select PIN will not gen erate a signature document Prior year AGI amounts are required in lieu of the signature Practitioner PIN Program 152 Practitioner PIN program information is entered on the General Information Screen Electronic Filing and Direct Deposit Information K Yes File federal return electronically m E file File State Return s Electronically ES Direct Deposit and Electronic Funds Withdrawal File Form 4868 extension electronically Form 4868 C heck on ly if th e ta xpayer Taxpayers who e file are typed in th e Pl N REQUIRED to electronically Practitioner PIN Program sign their return by selecting 2 a five digit PIN The PIN serves Taxpayer PIN as the electronic signature pele ERO PIN Taxpayer s entered PIN s Signature date 04 15 2012 Preparer is third party designee K Yes Taxpayer Spouse PINs The taxpayer and spouse can select their own PINs Each is composed of
202. lf Right clicking on the output form again will return you to the input pane 212 Step 9 Preparer Options A Click PO Options in the Forms pane to access the Preparer Options screen Alan would like the Two Year Comparison Worksheet This worksheet lists the income deductions taxes and credits for the current and prior years and computes the differences between them B Check the Two Year Comparison box Step 10 Interest and Dividends Now let s enter the income and deductions on the Form 1041 page 1 input screen for the Smith Trust A In the Forms pane click 1 1041 Pg 1 B Click the Interest Income grid C Enter the following information on rows 1 and 2 of the Interest Income grid e On row 1 enter USA Bank for the Interest Income Description e Enter 5546582 for the Account Number Enter 2 864 for the Interest Income Not US Govt e On row 2 enter Arizona State Bank for the Interest Income Description e Enter 7632154 for the Account Number e Enter 783 for the Total Muni Bonds D Click Close Click the Dividend Income grid Enter the following information on rows 1 and 2 of the Dividend Income grid e On row 1 enter Diversified Funds for the Dividend Income Description e Enter 96482 for the Account Number e Enter 1 223 for the Total Ordinary Dividends made in the Total Ordinary field Press Enter or Tab after making an entry in the Total Ordinary field and the amount will automatically c
203. lick the Change button if you need to change the default installation path We recommend that you leave this set ting as the default Step 7 After reading the license agreement and verifying the installation path click the Accept amp Install button Step 8 The software will install to the location specified in Step 6 Step 9 After all of the files have been installed the InstallShield Wizard Complete screen will be shown Select the option to launch the program and click the Finish button If the program does not start automatically you may run the program by double clicking the Tax Prep Software icon on your desktop r 3 InstallShield Wizard InstallShield Wizard Complete The Installshield Wizard has successfully installed the 2011 program on your computer Would you like to launch the 2011 program at this time Yes launch 2011 program O No do not launch the 2011 program at this time Adobe Reader is no longer required but recommended If you do not gt have Adobe Reader 9 0 or higher installed on your computer it is available for download from Adobe s website at www adobe com Install From Internet Step 1 Close all running programs Step 2 Open your internet browser and go to the software website Step 3 Locate the download file Step 4 Click on the Download link to begin downloading It is recom mended that you save the link to your desktop Step 5 Locate the setu
204. lick the Peek button on the button bar to review the numbers on the form As a result of the Cost of goods sold entries Form 1065 page 1 should show the following Total income line 8 139 018 Total deductions line 21 89 296 Ordinary business income line 22 49 722 Step 10 1065 page 2 amp 3 Other Information Schedule B The AbleBaker Bookstore is a Domestic General Partnership which is the default in the program Therefore an entry on line of Schedule B is not necessary In addition the partners will all be treated as general partners on the Schedule K 1s The questions on lines 2 and 4 16 are answered No by default for the lt gt partnership Question 3 will automatically be produced based on infor mation entered on the Partner K 1s to be entered later in this tutorial Also question 17 the last question on Schedule B deals with foreign partnerships and is not applicable for this return Step 11 1065 page 4 Schedule K A In the Forms pane click on 4 1065 pg 4 B The partnership has several items that must be reported separately on Schedule K 1 Click the nterest grid button on line 5 Enter the Interest Income Description of Maryland Municipal Bonds In the Total Muni Bonds column enter 50 Note that the resident state of MD appeared in the State column This state can be changed to indicate the state that issued the bonds if needed The tax exempt interest
205. lick the Status button while in the client s return Highlight the status right click and select Delete Status I OO Enhancing Your Performance 89 The status Proformaed is set during the proforma process Select when the status In Progress is set from the drop down box Other statuses must be set manually Client Status for Winter Cris File Date 9 6 2011 9 37 3 E3 Comments Click to type comments for the client that is open Status ID Date In m 09 02 11 3548378 Click to add and view custom statuses Check to suppress the display of this screen after Custom Statuses OK Cancel exiting each client J Do not display preparation status automatically Help Set Status from Proformaed Created to In Client file is first opened Progress when Auto Status Feature Every time you exit a client s return you will see a window that asks if you want to change the client status This feature can be turned off by checking the Do not display preparation status automatically box and clicking OK This will turn the feature off for all clients To turn the feature back on click Control on the button bar Click the Suppress tab Uncheck the Suppress Status Prompt box Custom Statuses can be updated from the prior year Reference Updating m System Files section 90 Batch Processing Clients Use the Batch Process feature to initiate quick processing or printing of several
206. lient No and Client ID fields are optional entries They may be left blank or any combination of letters and or numbers may be used D Enter the Estate Trust Name as Smith Trust E Enter the Fiduciary Name as Alan Smith F Enter the EIN without a dash as it is already provided Smith Trust s EIN is 87 1454876 G Enter the Address as 136 East Main Street 1 Smith Trust s zip code is 85308 There are no fields for the city and state Simply enter the zip code and the program will insert the city and state on the General Information screen If the zip code represents more than one city the program will open a win dow with a selection of cities for that zip code Select the correct city by highlighting it H Click OK A screen will appear that asks if you are sure you want to create the return in the Samples folder Click Yes Step 6 General Information A The first input screen will appear This is the General Information screen Notice that the client ID estate trust name address city state zip county and EIN have all carried from the New Client screen B Enter 623 555 2231 as the Fiduciary Phone No C For this tutorial enter your own firm s email address in the E mail address field We will use this email address later in the tutorial Step 7 Electronic Filing Options A Click the Electronic filing options link to access the Electronic Filing Options input screen This link will be present for 2011 only
207. list of forms if all red audits have been cleared Since we created this return in the Samples folder you can click the Create E File s button and then access the EF Center via the EF Ctr button on the button bar For step by step instructions on creating the e file and transmitting the return refer to Filing Returns Electronically Caution If returns created in Client Selection folders other than the Samples folder are electronically filed they are considered live returns and will be sent to the IRS state agency Take care when click ing the Create E File s button to ensure that live data does not get transmitted when testing and exploring the e file process Step 24 Printing the Return Let s print the paper filing copies of the federal and state returns and save a PDF copy to your hard drive To accomplish this we will uti lize the Advanced Form Delivery A From Review mode click on the Adv button in the output pane The Advanced Form Delivery window has options for paper printing and saving B In the Print box select All Government Paper Filing Sets from the first drop down box All Government Paper Filing Sets will print both federal and state returns C In the Save box select the Preparer File Set in the Set drop down box Click the browse button to the right of the Path field to select a desti nation for the saved return in this case select the Desktop Once you have chosen a Set and a Path the Filename field will
208. lose the grid If any adjusting entries are necessary on Form 2441 make them on the Form 2441 input screen gt er 8 Form W 2 Stephanie received two W 2s The first one is from California Design Services her employer before moving A B C On the General Information screen in the Income section click on the Form W 2 link This will open the W 2 input screen Select Spouse from the Ownership Code drop down box Enter the Employer s ID number as 82 0002871 The program will carry the taxpayer s or spouse s information from the General Information screen Stephanie reported her change of address to California Design so her address reported on the W 2 is her current gt address D Enter the Employer s name as California Design Services Notice that after you enter the Employer s name it adds that name to the multiple drop down box at the top of the screen Enter the Employer s address as 1220 E Hunter Avenue The Employer s ZIP Code is 92507 Riverside m m G Enter Stephanie s wages She earned 18 223 from California Design last year Notice that the wage amount carries to lines 3 and 5 as well as the state and local wages on the first row in the state simple grid The program also calculates social security and Medicare withholdings based on those amounts If the calculated numbers disagree with the form override the necessary amounts by replacing the calculated fig ures The program will round all
209. lowance Elections t U Enhancing Your Performance 105 The Asset Tracker will generate election statements if the taxpayer has elected out of the special depreciation allowance for any of the given classes x of property Sp Allow Elections for Special Depreciation Allowance Elect out of Special Depreciation Allowance From which classes does the taxpayer elect out of the Section 158 k i z A Special Depreciation Allowance 50 400 Property Property None All Classes x 3 Year Property 5 Year Property T Year Property 10 Year Property 15 Year Property 20 Year Property Water Utilty Property Depreciable Computer Software Qualified Leasehold Improvement Property W NIMIUM 4 NOTE Once the election is made for a class of property the special depreciation allowance for that class of property will be disallowed for the current tax year 50 Special Depreciation Allowance only applies to new assets acquired on or after January 1 2008 and on or before December 31 2009 and to certain special types of property for periods beyond 2009 See Publication 946 Form 4562 Instructions or the Internal Revenue Code for any exceptions To Elect out of 50 Special Depreciation Allowance select none for each applicable class of asset An election statement will be printed when the tax return is reviewed A For eo property that is eligible for the 50 special depreciation allowance chec
210. lumn E for the bank interest earned in California Enter 14 722 on line 12 Business income or loss in Part II Column E This amount represents a portion of Richard s profit earned in California before moving In the Forms pane click NRA2 CA NR Pg 2 Enter 1 040 in Column E for line 27 This 1s figured by taking the fed eral self employment tax deduction and multiplying it by the California self employed income divided by federal self employed income In this case the formula is 1 796 x 14 722 25 423 Enter 4 216 in Column E for line 29 This 1s calculated by taking the federal self employed health insurance deduction and multiplying it by California self employed income divided by the federal self employed income In this case the formula is 7 280 x 14 722 25 423 California allows the same deduction for the IRA as the federal so enter 10 000 in Column E for line 32 Click the W button on the state drop down box located above the Forms pane Select UT from the list of states On the Utah General Information screen check the box to Prepare part year resident return Enter the dates of residency as 06 01 2011 to 12 31 2011 In the Forms pane click B TC 40B On line 6 Business income loss enter 10 701 to show the Utah portion of Richard s profit from Jones Computer Consulting On line 21 notice on the output form that the moving expenses are automatically carried from Federal Form 3903 On li
211. m Letters 53 54 114 115 Extension and Regular 113 Update Custom 114 Custom Status 60 89 90 CYMA 239 Data Input 134 Data Paths 36 61 63 83 84 Database 11 12 111 197 198 Client 92 111 City Tax Information 204 E File See Electronic Filing Database Installation 11 12 Zip Code 71 Date Auto fill 32 Declaration Control Number DCN 142 143 170 Defaults 26 30 53 121 Invoice 118 Printer 122 128 129 132 Remove 121 Restore 26 Set 121 Delete 31 62 Asset Tracker 157 159 Clients 62 Configuration 16 Data Paths 63 83 Defaults 67 121 Edit 63 Folder 63 Form 32 Library 123 Line 31 Management 92 Multiple 32 33 205 StaR 69 State amp City 203 Status 89 Text 31 User 16 86 Dependent Information 39 73 Depreciation 46 97 99 101 102 106 224 225 Asset Tracker 96 107 Reports 106 Symbols Detail Statements 23 31 45 79 80 120 Direct Deposit 5 53 144 145 147 191 Disbursement Method 191 195 200 Discounts 119 123 Display Requirements 1 Distribution Sets 125 126 Customizing 127 128 Defaults 128 129 Print 130 131 Save 132 Update 60 Watermark 127 Download Clients 62 64 130 131 Files 62 64 Installation 9 18 21 NET Framework 7 9 PUP Code 205 Updates 18 21 Drain Time 178 184 Duplicate 69 120 Earned Income Credit EIC 39 40 73 Edit 30 63 City Tax Info 123 Custom Letters 53 114 115 Data Paths 36 83 Login 161 Menu 63 Security 87 88 Editor 124 Education Credit 38 210 E File
212. ment Contributions 47 Return Summary 27 Review Return 23 Revisions 202 RTN Library 60 123 146 S Sale Assets 46 Same as Output 27 Sample Return Install Samples 65 1040 Sample 36 56 1065 Sample 221 235 Sample Warning 61 Save as PDF 55 131 166 167 196 235 Schedule A Form Link 28 1040 Sample 48 1065 Sample Return 229 236 Schedule B 1040 Sample 42 43 Under Menu 123 1065 Sample 226 Schedule C 4 27 32 33 79 204 1040 Sample 44 47 Schedule D 1040 Sample Return 43 1041 Sample Return 214 216 Schedule K 1065 Sample Return 223 226 229 233 Schedule K 1 35 60 114 126 127 182 208 Business Systems 217 226 227 230 232 New System Features 4 6 Ohio Cities 204 Schedule M 1 208 229 230 234 Schedule M 2 228 230 Screen Symbols 28 S Corporation 183 185 208 Secure Folders 85 88 Secure Management 88 Security Initial Configuration 15 16 E file Center 158 162 Forgot Password 88 162 Folders 88 Login 86 Management 88 Master Password 15 16 85 89 Preferences 87 Protect 86 Setup 85 Workbench 85 124 Self Employment 1040 Sample Return 44 50 51 1065 Sample Return 231 232 234 Serial Number 11 13 57 Set Default 121 132 Settings 1 2 9 11 12 17 18 20 24 26 29 31 34 35 45 48 57 60 67 115 118 123 132 143 144 156 193 220 Signature Authorization Form 153 Signature Forms 109 126 Signature Pad 109 Simple Grid 31 41 45 48 Simple Tax Return Wizard 67 78 Simulation of E File and Bank 1
213. menu Control Data and click the Switches tab Uncheck Use STaR Wizard as default Control Data E3 Eim Access Paths Switches Startup Suppress Forms Audits Mouse Hide ability to suppress automatic status amp backup dialogs Log to Management Database using Check the box to set the STaR M GENEIN ce urique identifiar Wizard as your default input screen Suppress Bank Account Verification forms Hide invoice input screen items r IV Hide client number in client selection pen notes when opening clients Use long descriptions on form selection Wam when opening Completed clients Spell month of due date on Instruction Letter Force libraries amp statements to UPPER CASE Do Not Mask SSN EIN I Default federal and state 3rd Party Authorization T Audit Trail in Review Mode Require Ctrl key to the preparer tight click to display Audit Trail Use STaR Wizard as default Use Spanish Program Helps User Specific Settings OK esc Cancel Help If you uncheck Use STaR Wizard as default the Standard new client screen will appear With the STaR Wizard off you will see the screen below when opening an existing client or starting a new client E E New 1040 Client x TaxSystem oa Data PathName MyTaxFies xz Ere smod sl 3 Newrae Client ID Taxpayer Spouse First Name
214. mmary of information and totals pertinent to the form or schedule you are working on A limited amount of information is also included on the status bar when the Summary pane is minimized This feature is only available in the 1040 system The figures below compare Return Summary and Sgme as Output Summary panes when working ona Schedule C 8 Return Summary Y Same as Output Y EL Click to print the Summary pane infirma BOL lerser 53 322 Gross receipts or 18 000 Std or ttemized 2 250 Gross profit 18 000 Exemptions 7 300 Gross Income 18 000 Taxable Income 43 772 Auto and truck 0 Click to minimize Income Tax 15 5 729 Depr Sec 178 0 the Summary pane Child Care Credit Other Interest 0 and maximize the Child Tax Credit Total other 0 Forms pane Education Credit Total Expenses 7 700 Va E f Tentative Profit Los 10 300 PEPP NET PROFIT LOSS 10 300 0 0 0 0 00 OOO General Instructions 27 Screen Symbols Hn Some form and schedule input screens contain symbols Required Entry Entries must be made in these fields in order to generate the form Optional Entry Fields with one black dot indicate that amounts will auto matically carry from other forms if the corresponding forms are program generated Make an entry in this field if you are hand preparing the form Override Entry Fields with two black dots indicate th
215. module for fed eral systems 990 990PF 1040 1041 1065 1120 1120S 5500 and Extensions Many states can also be filed To file returns electronically you must go through four basic steps preparing the return transmitting the return handling acknowledgments and correcting rejects if required How to Become an E File Participant To participate in the e file program you must be an authorized e file provid er This requires that you file federal Form 8633 Application to Participate in the IRS and State e file programs Instructions can be found on the IRS website at www irs gov Declaration Control Number DCN Most 1040 e file returns are assigned a Declaration Control Number DCN The DCN is used by the IRS for identification purposes The number must be unique for each return The program will automatically assign the DCN when the return is reviewed if the File Federal Return Electronically box is checked The DCN will print at the top of Form 8879 The DCN will be the same for both the federal and state returns The DCN is divided into 3 parts The first six digits are your EFIN the next three digits are the batch number and the last two digits designate the sequence of the return within the batch 142 Enter your EFIN Before you proceed click the Control button On the Firm tab enter your Default EFIN If you are operating on a network or only one stand alone computer you are done Click OK
216. mp Delivery Settings Distribution Sets Preparers li a Common Forms 4 i 7v Custom Letters Invoice Settings Ctrl Hl Ge Discounts Edit City Tax Info Libraries p Employer Library RTN Library 4 Colors View Review F7 Review Without Audits T Peek F11 A Audits A Audits Suppressed Ctrl A EN Use Captions on Buttons Reset Desk Ctrl F5 e Reset Button Bar Lock Button Bar Workbench 5 Security List Business Codes Y Support Tool E Client File Editor I Command Line Pas Initial Configuration Wizard Import from RedGear Accounting Import from Creative Solutions Import from Easy Acct Import from QuickBooks Import from Microsoft Office Accounting Import from Other Acct Software 246 Forms Utilities Client Status Ctrl F2 gt Federal F2 a E Detail Statements FB EB State F4 B calculator Ctrl R amp Next State Shift F4 Notes Ctri N lad Cities E Defaults L Assets F5 3 Set Default Ctrl D x Remove Default Farm Filler fk A States amp Pups Ctrl P x Reset Forms In Use Ctrl F10 Split Return 4p Upload Client to Support Team I Print Input Screen Bank Consent to Use or Disclose Tax Return Info Quick EF Lookup Help Government Instructions F1 Program Help Ctrl F 1 Installations gt Gy Web Site Qo Check for Updates ht Pup History A Alerts Configure Update Op
217. mt New STaR Clients Assets Fed State Detail Peek Review Audits PUPs Upload Status Close Ark Control Alerts Upgrd Click to add or delete e EF Timing for Oct 18 DD Oct 23 or Check Nov5 a state OH General Information 2 17 1040 P92 Fling due date i other than standard E D 3 17 1040 Pg 3 Prepare IT 1040P as extension T ves Displays the states and cities pe bci OMe 4 Eu included in the return purs b eee que pe D SD SD 100 E ves Lists the forms available for FEE MATS PE Te 1 OHCBI Cities GI Spouse residency status the selected state city OLI El E D ves i T ves EK ves Hone zip cot tere a nel res Income and Tax Information j Ohio Adjustments 0 The Cities button will only be present if you select a state for which the gt software supports related city returns Cs States and Cities 203 e e Ohio Cities For Ohio cities the software has working city and working date input fields on the federal Schedules C E F K 1 Received and 1099 Misc input screens The W 2 input screen also contains a grid for entering Ohio city information The income entered on these federal forms will carry to the corresponding working city return s The program has income grids as well as a Resident Cities grid on the OHCGI Ohio City Information input screen which is located on the Ohio state module Entries in the resident cit ies and residency dates input fields will generate the resident city return s The income will b
218. n Sets Types of Distribution Sets B Government Paper Filing Federal Paper The federal set includes all of the federal forms and worksheets available for printing in the program gt Part year and non resident federal form sets are available State Paper After selecting the state the set will include all of the state forms and worksheets available for printing in the program EEL Print Features 125 gt City Paper After selecting the city the set will include all of the city forms and worksheets available for printing in the program Extension All extension forms can be found here Signature Paper Signature This set includes all signature forms required when filing a paper return EF Signature This set includes all signature forms required when e filing a return Preparer Preparer Review This set includes all forms needed for the preparer to review a return Preparer File This set includes forms that may be kept by the preparer in his her records Client Client Copy This set includes forms the client might need for their personal records Ptr Shr Benf Sch K 1s This set includes K 1s for all of the differ ent business systems The program is delivered with a checkmark by forms falling into the selected set per recommendations set by government agencies However all forms are available within each set Distribution S
219. n is reviewed the selected forms will appear at the bottom of the list shaded in yellow CC Print Features 133 To print forms independent of a return you must have your workspace in Idle mode client returns and Client Selection screen are closed Click the Forms menu and select Form Filler To print multiple forms at one time hold down the Ctrl key click the desired forms or for grouped forms hold shift amp down arrow then click Print Page or Print Blank E 1040Works 2010 Form Filler Print Page Print Blank Copies t Print the form with data LeadFonts Delete Al 21 Fib Heb Close TOI FLD not yet avaiable Trrultingis ror avaiable FINCENFom 103 Currency Transaction Report by Casinos Rev August 2008 b Previous editions will not be accepted after February 2009 MEA etm ie eren RE niat Print a blank form m eee se en duas ifs sari amendedreport check nre and attach a copy ofte wighal CTRC tothis fom Partl Person s Involved in Transaction s Section A Peson s on Whose Behalf Iransaction s is Conducted Customer T2 Munie persons 3 Irdvitusrs last name or Organzationes rame 4 Fit name trm Select the system or state 5 Dongbusness as DBA T E I mE Set the number of copies saisi MM Passt EUE
220. n screen e Open Client Alt O Opens an existing client Tag the client and click Open Client to open the client file in Input mode 62 Import Imports a client file from another location Click the File menu and select Import Browse to the location of the file to be imported and click Open Export Client s Exports client files to another location or porta ble storage device Tag the client file s to be exported and click the File menu Select Export Browse to the location where you want to save the files Click Save Export Alt X Exports client files within a system Choose the system tab you would like exported Click Export Close ESC Closes the Client Selection screen and returns you to Idle mode Edit Copy Alt C Copies client files from one path or folder to another This is especially helpful if you have saved clients to a disk or other removable device Delete Alt D Deletes the client file from the Client Selection screen and places them in the Client Selection Recycle Bin Move Alt M Moves the client file to another path or folder location Renumber Alt B Reassigns the tagged client s with a new client number that you choose Data Paths Alt S Allows you to add edit or delete data paths Reference the Data Paths section New Folder Alt L Allows you to add new folders to the Data Path selected When you create a new folder Client Sel
221. n the E File Center From the Overview screen click Drain Times in the Helpful Links box IRS 1041 E help Phone Number 1 866 255 0654 Ogden Form 8879F Retention When using the PIN program the client must sign Form 8879F before trans mitting the return This must be retained by the ERO for three years 77777 VmH A Filing Returns Electronically 181 1041 IRS E File Application To participate in the IRS 1041 e file program you must file Form 8633 with the IRS Check box 1041 under question 4 The easiest way to apply is through IRS e services at http www irs gov taxpros article 0 id 109646 00 html 1065 E File 182 The IRS mandated all partnerships with 100 or more K 1s to be filed elec tronically A 50 penalty for each K 1 over 100 is imposed The 1065 e file process is similar to the 1040 1 On the General Information screen click the Electronic filing options link to access the e file screen 2 Complete the applicable information on the Electronic Filing Options screen 3 Refer to the 1040 e file section and complete the creating and sending an e file return process 4 On the E File Center Overview screen select 1065 from the System dropdown box Reference IRS Pub 4163 and 4164 for 1065 MeF details 1065 Drain Times View the latest e file drain times in the E File Center From the Overview screen click Drain Times in the Helpful Links box IRS 1065
222. nally you may need a form that is not included in the state or city return you are preparing While working in the client s return click the Forms menu and select Form Filler This option includes many forms Enter data in the forms or print blank forms When the client s return is saved the Form Filler data will be saved also Reference the Print Features Other Printable Forms section for complete instructions State W 2 W 2G 1099 R 1099 Misc 1099 G and City W 2 The state entered in the address field on the federal General Information screen will automatically carry to the state fields on Forms W 2 W 2G 1099 R 1099 Misc and 1099 G Enter the two letter state code on these forms to override the state entered on the General Information screen O i Pio New gt mJ Toft GUNNER INC IER Form Common Type Used 6 Medicare tax withheld 195 For Code J Sick Pay is from Railroad Selection GI 7 Social security tips For Code L Emp Bus Exp Form 2106 oo 8 Allocated tips Form 4137 For Code P Moving Exp Form 3903 E GI General Info ator Dl DI Dependents 3 9 Advance EIC payment m For Code W HSA contribs Form 8889 D LTR Instr Ltr 10 Depn care benefits Form 2441 Fagen ory i 1 D INV Invoice 11 Nonqualified plans Employee Retirement Third Party Enter the City locality code Brey ones employee Pat B Non standard indicator p ves j E 5 D 1 1040 P
223. nd spouse Grids column to indicate ownership Detail statements column to indicate ownership The state can be indicated on many forms through detail statements Generally input screens that already contain fields for the two letter state code such as Schedules C and E will not have a state column in the detail statement grid A We will allocate an amount to the taxpayer and spouse using Detail Statements and the T S J column We will also allocate 100 of an amount using the right click feature Create a new client with a filing status of MFJ on the Client Selection screen Indicate a taxpayer and a spouse EE Enhancing Your Performance 79 Click the Federal button on the button bar 2 In the Forms pane click 1 1040 Pg 1 3 Double click on the ine 17 input field to open the Detail Statement grid 4 Enter Rental Property 1 in the Description column Taxpayer in the 7 S J column and 3 000 in the Amount column Detail Statement i t3 Sched E Income FORM 1040PG 12006 max Description T S4 Amount 2 Rental Property 2 Spouse 1 Rental Property 1 Taxpayer v 3 000 X 1 000 x NH Total 4 000 w Print this statement with the retum JV Update this statement s descriptions to 2012 Use cents OK Help 5 Press Enter to access line 2 of the Detail Statement Enter Rental Property 2 in the Description column Spouse in the T S J column and 1 000 in the Amount column 7 Cli
224. nd account numbers EXACTLY as they appear on the license notice Serial Number Firm Data Page 1 Enter Serial Number 7534 5678 9101 1123 Account Number AB12345 After clicking Next please wait a few moments as firm information is downloaded from the Internet Bak net Cancel Installation 13 14 Step 9 Enter other firm information as desired Click Next to continue Start Page Serial Number Firm Data Page 1 Firm Data Please enter or verify your Firm Information 1234 5678 9123 4567 AB12345 m Tax Software Inc 555 Tax Way 89037 KAYSVILLE fw Required entry Enter the appropriate numbers and street address EXACTLY as they appear on the license notice Step 10 Enter any additional firm data as desired If you participate in electronic filing you can enter a default EFIN Click Next to continue Start Page Serial Number Firm Data Page 1 Firm Data Page 2 Additional Firm Data Please enter or verify your Firm Information EmpoyerIDNo 11 1111111 Default EFIN 123456 E mail Address john sample com Web Site www sample com Telephone Fax 801 555 4321 Step 11 The Security section of the Initial Configuration Wizard walks you through settin
225. nd select List Business Codes Date Auto fill On a date field you may press the letter T to fill in the current date Or if only the month and day MMDD are entered in a date field the program will assume the current year and fill it in accordingly Dragging An alternative to scrolling on a form is to drag the form Drag by moving the mouse while depressing the left mouse button or mouse wheel control Dragging is convenient while viewing the Input and Output panes Renumber Multiples To renumber a multiple select the form or schedule Click the drop down box at the top of the form and select lt Delete Rename gt O Prior Next b Mj 1of1 wage We 1 lt Add New gt lt Delete Rename gt Form W 2 Wage and Tax Informate39 2 1 Ownership code T S r Taxpayer E 555 55 4545 JACK WILLIAMSON 57 YOUR LANE SAM TITAM RATITTSTA CA AKNAS Employee SSN if different Employee name if different Employee address if different P Eordr se nian bob TNY Tag the multiple you want to delete and click Delete Verify the information if prompted and click Yes Click Yes to compress the remaining input forms Clicking No will delete the information on the form leaving a blank form CU Name 1 Bl Wage w2 J Delete Rename Multiple Forms Repair Names Delete Help manually change the multiple number for any information carryi
226. ne 22 One half of self employment tax enter 756 1 796 federal reduced by 1 040 allocated to California W On line 24 Self employed health insurance deduction enter 3 064 7 280 federal reduced by 4 216 allocated to California X Enter 5 833 on line 27 to represent 7 12 of their IRA contributions for the time they lived in Utah Step 18 Estimated Payments Made and Estimated Payment Vouchers Richard is a sole proprietor and not an employee therefore he had no income tax withholding In order to avoid any possible penalty Richard paid 350 a quarter in federal estimated payments A Click the Federal button on the button bar B Inthe Forms pane click ES Estimates C Enter the following information for Richard s federal payments Ud VIO LLeutusscexwk bro eds 350 COTO T 350 UT MAO Liu satur eR EDe RR RTI eh 350 LST as a EE C n RR EE ERR UE dti M 350 If the payments were made on the voucher dates no entry 1s needed in the Payment Date column Step 19 2012 Estimated Tax The Jones family would like to have vouchers prepared for next year and want to pay the estimated 2012 tax over the year even if it is more than the required payment A In the 2012 Estimated Tax Worksheet section of the 1040 Federal Estimated Tax input screen click the 2012 Estimated Tax drop down box You will see seven different options for estimating the 2012 tax For this return select 4 100 of 2012 estimated tax B Right below
227. neral Information screen will default to the screen option of the previous return you were preparing When opening an existing client the General Information screen will default to the screen option you were working on when you closed the return Espa ol EF Timing for Sep 1 DD Sep 16 or Check Sep 23 POJ tte After working ina u Inforn ation Advanced form click the green arrow Disaster button to return to the General Information screen First Name Last Nar Select the desired Gener T Information screen option Occupation Birthdate Blind 66 Permanent Disabled Beta 2 Updater Test Revised 06 01 2011 Disaster Relief ler see Helps s f Different Taxpayer Spouse JACK JIONA ILLIAMSON 555 55 4545 11 11 1333 CONTRACTOR STAY AT HOME MOM 06 01 1968 Age 43 11 15 1971 Age 40 Yes D ves Yes SchedueR Yes mccum Simple Tax Return Wizard STaR The Simple Tax Return Wizard STaR allows you to quickly enter simple 1040 returns by working through an input wizard The feature assists in reducing errors and keystrokes and the entire return can be prepared using only the keyboard A list of the keyboard short cuts can be found at the end of this section STaR When starting a new client or opening an existing client STaR is on by default If you would like to turn STaR off and use the standard new client screen select the Settings
228. ng as the city Enter Frank s SSN as 123 00 6789 Check the box to indicate that Frank is the Tax Matters Partner The required information will carry automatically to page 2 of the 1065 If you peek the form you will notice for item G that the box for General partner is automatically checked on the form because this is a General Partnership t Click Peek to return to the input screen K Select 7 Individual Active from the drop down box for the Type of entity field on item I L Enter 50 in the Master Default field for item J since Frank s per centage of profit sharing loss sharing and ownership of capital is 50 M Enter 14 050 for Frank s Beginning Capital for item L Partner s capital account analysis The remaining amounts from item L are automatically computed In the subsequent year you need not enter the beginning capital account because the ending capital account for the prior year will update to the beginning capital account for the subsequent year N Enter 20 000 on line 4 Guaranteed Payments to Partner of part III for Frank s guaranteed payment Frank s guaranteed payment and his share of ordinary income will be subject to Self Employment Tax The program will carry the self employment earnings to line 14a O All remaining amounts will carry automatically to Schedule K 1 from Schedule K Step 17 Schedule K 1 Susan L Baker Now we need to enter Susan s K 1 information A At the top of Frank s K 1
229. ng to a gt When forms are compressed they automatically renumber You must renumbered form i e Form 4562 carrying to a specific Schedule C Rename Multiples To rename a multiple click the Multiple drop down box and select lt Delete Rename gt Tag the form schedule that needs to be renamed Drag the mouse to highlight the field press the Backspace key to delete or click the Repair Names button Enter the information and click Close to save Delete Rename Multiple Forms t3 Type the desired information a Name to rename the form 1 Humanity Nutritior Repair Names Delete gee Help New forms are automatically named as entered If the name is changed on any new or updated multiple form the auto name will also change Audits The program has included audit suggestions and reminders while preparing tax returns To view audits while working in a client s Audits return click Audits on the button bar The Audit Statements screen will appear To correct an audit click Fix Now This will take you to the form and field in question where you can make changes If the Audit button is inactive there are no audits in the return General Instructions 33 To suppress an audit click the Click here to suppress button in the Suppress column Click the button once to suppress the audit for the client you have open the text on the button will be written in blue
230. ng your new login has been added Click Finish The owner of the new user account will be prompted to reset the User Name and Password when logging in to the E File Center for the first time The Administrator will need to inform the user of the User Name and Password which is password 16 If you need to make changes to existing user logins click the Security link on the Overview screen 17 Click the Edit Login link for the user you wish to edit LLL Filing Returns Electronically 161 18 You have the ability to change the user s first name and last name create a new user name reset the password and edit access to areas of the E File Center Make the applicable changes and click Submit 19 You have the ability to reset a password or recover an existing password To perform these functions click the Exit Login link Click the Reset Password button Note on the screen that the password will be reset to your charge number if you are the Administrator or to password for all other users 20 If you are a user and have forgotten your password click the EF Ctr button The Login screen will appear 21 Click the Forgot Username Password links EFile Center Login 2011 2 User Name Click to recover login user Password name and password ERES User Name Password Keep me logged in First time logging in Are you the administrator Log In 22 Fill in the Security Question
231. ngs to line 14a N All remaining amounts will carry automatically to Schedule K 1 from Schedule K Step 18 Self Employment Worksheet Because Frank and Susan are general partners and their income is subject to Self Employment Tax the total net earnings of 74 722 will carry to Schedule K line 14a In addition the Self Employment Worksheet will be produced The worksheet 1s a duplicate of the worksheet found in the IRS form instructions To view the worksheet the return must be reviewed Step 21 Step 19 Two Year Comparison Frank and Susan want a Two Year Comparison report so they can identify any significant changes in amounts reported in 2011 versus the amounts reported in 2010 In Step 6 Preparer Options the Two Year Comparison box was checked However because this is a new client the 2010 amounts must be manually input In subsequent years the report will be updated for the prior year amounts A In the Forms pane click 2YR 2Yr Comp P1 B Enter the following amounts for the prior year Income Gross receipts or sales 300 000 Less returns and allowances 3 000 Cost of goods sold 45 250 000 Other inCome sido cc user a e RES es 50 Deductions Salaries and wages 0 05 25 000 Guaranteed payments to partners 25 000 Repairs and maintenance 2 000 Bad debts dc ces Rod toed Coen Yat heaton 200 Reto Boise ais ee Ls UE S 20 0
232. nia Form VA 8879C 6 E a 1120S Federal Built in gains worksheet Federal Form 8050 Connecticut CT K 1T Idaho Form PTE 01 Form PTE 12 Maryland Form 510C Oregon Portland Form C Form P Form SC Pennsylvania RCT 1010D RCT 128C 99999 000 5 EE OGUEU ca E Ema m NN New System Features 5 Puerto Rico Business Systems 1065 1120 1120S Rhode Island Schedule K 1 E filing Utah TC 250 Installation The software installation will place supporting files as well as subdirecto ries on your local drive It is easy to use and is similar to other Windows installation programs The installation is comprised of screens with choices that operate in a wizard format Move through each screen by choosing and clicking the appropriate buttons for the desired option For the 2011 software the installation process has been simplified Configuration for networks has been moved and is now part of the Initial Configuration Wizard If installing from the Internet refer to Install from Internet instructions at gt the end of this section Install from CD Step 1 Close all running programs Step 2 Insert the CD into your CD ROM drive Step 3 The CD should start automatically Click the To Begin Installation Click Here link on the launch page Step 4 If the auto run menu does not appear after inserting the program CD click the Start button on the
233. nstruc tions including IRS Package X and State Instruction Booklets B Program Help View detailed information about the program by topic This can also be accessed within the client s return by pressing Ctrl F1 or by clicking the Help button located in the lower right hand corner of several screens Bx Print instructions for the topic selected Click Search and enter kei keyword you would like information on Select the topic udi B Website This option will launch the software s web page Find out about company products and read the latest news LLL Help Menu 201 202 Pup History This option gives a report of all PUP codes you have requested The report contains the date system state SSN EIN PUP code and charges Alerts Alerts are messages sent by personnel alerting you of impor tant upgrades e file and bank information etc Revisions Select this option to search the Online Knowledge Base for any federal and or state revisions or operational revisions that have been made to the program Release Dates This option links to a grid noting the anticipated release dates for system and state programs forms and electronic filing 1040 1041 1065 Tutorials Select one of these options to access a step by step tutorial that will help you prepare a return in the related system Test Communications This option will perform an Internet test with your ISP and
234. nt is Ineligible for CTC child tax credit hit the SPACE BAR to check the box If Childcare Expenses have been paid on behalf of the dependent enter the total expenses If childcare expenses are entered additional fields will appear requesting child care provider information Within the Dependent Grid at the top of the screen use the F11 and F12 keys to move up and down to select a dependent you wish to Edit or Delete To select the dependent for editing hit the F10 key Highlight the dependent you wish to select and hit the Edit key to change previously entered depen dent information Click the CLEAR button or Alt C keys to clear the data for a specific dependent you are entering information for if wish to begin data entry again Click the SAVE button or Alt S keys to save the dependent information After the dependent information has been entered hit ENTER or Alt N to proceed to the next screen Dependent EIC Due Diligence Screen STaR Wizard Jog Dependent EIC Due Diligence SS Consents gt gt Taxpayer EIC Due Diligence gt W 2 Filing Information Dependent List First Name Last Name SSN Birthday Age Relationship Claim EIC Jonas winter 222 22 2222 05 23 2007 o l Ceca Notes Une your FLL and FL2 kay to nda the Dependent from the grid Select Three Dependents to complete EIC dve Diigence EIC Due Diligence Questions Jonas Winter irad on the EIC input en for te
235. nt many different types of letters with a return Standard Filing Instruction Letter The Standard Filing Instruction Letter is generated automatically with each client return It contains information such as refund amount balance due and mailing instructions which are pulled from the return There are also federal and state extension letters While in a client s return select LTR Instr Ltr from the Forms pane The letter input screen will appear It contains options for printing Standard Custom Privacy and Engagement letters Additional text may be added to the Standard and Custom letters To default the additional text for all clients input the text and press Ctrl D The normal default is to print additional text at the bottom of the letter Check the Print additional federal text at the top of the letter box to override the default placement gj Letters Standard Letters Suppress printing Standard Filing Instruction Letter Prepare federal extension Standard Filing Instruction Letter Prepare state extension Standard Filing Instruction Letter Prepare separate estimate Standard Filing Instruction Letter r r Prepare Standard Privacy Disclosure Statement E NOTE See Other Letters below for Custom Privacy Disclosure Statement NOTE This section applies to both standard and custom letters Letter date if different Additional federal text to print on letter Print additional fed
236. nted on the check If there is a discrepancy DO NOT issue the check Reference the Reprint Checks instructions 3 Explain to the client the APR Annual Percentage Rate and loan charg es and fees printed on the check stub 4 If applicable secure the client s signature on the Check Received By line at the bottom of the bank application to certify the receipt of the check Write the number of the check and the date received 5 Issue the check to the client The bank provides a Good Funds Letter if needed Multiple Disbursements If more than one disbursement is required the bank will e Issue multiple check print records Make multiple direct deposits Restock the debit cards If the client decides to decline the check contact the bank for Stop Check information If the client decides to decline the loan contact the bank Reprint Checks Printed checks that are damaged torn or used out of sequence prior to the disbursement to the taxpayer may be reconciled internally using the Reprint Checks procedure An automatic VOID check reconcilement record will be created 1 Click the Bank button then click Reprint 2 Enter the taxpayer s SSN for the check to be reprinted Click Go Tag the desired check and click Reprint Use caution when selecting checks to be reprinted as one client could receive multiple checks 3 A screen will appear with reasons the check may need to be reprinted Select the applicable reason and click
237. numbers to whole dollar amounts Do not enter dollar signs or commas gt Stephanie had federal income tax withheld of 2 842 The Social security tax withheld was 765 37 and Medicare was 264 23 The program correctly calculated these amounts Notice that the program rounded the social security tax withholding up to 1130 Enter the state in the state simple grid as CA for California California Design Services state employer ID number is CA6955061 Stephanie had 942 in California state taxes withheld J K L M Click the Next button at the top of the input screen to move to the next W 2 N Select Spouse as the Ownership Code Oo Enter the following information about Web Design Inc Employer s ID number 87 1929047 Employer s name Web Design Inc Employer s address 350 South Main Street Employer s ZIP 84037 Kaysville Wages 23 589 Federal withholding 3 370 UT State Employer ID number Y66598 UT withholding 1 613 P Click the green arrow button at the top left of the input form control 1040 Sample Return 41 42 bar to return to the General Information screen Step 9 Schedule B Interest and Dividends The Jones family received both interest and dividends in 2011 Let s enter the interest and dividends now Interest A On the General Information screen in the Income section click on the Schedule B link right under ine 8 The link will take you to the Schedule B input screen which has two entry
238. o Schedule A 1 2032A property election a All heirs must sign and agree to the special use valuation on page 4 b A reduction in value cannot exceed 1 000 000 c 25 ofthe gross estate must be 2032A real property d 50 of the estate must be real or personal 20324 property The 2032 and 2032A elections may be made together or separately The Marital Deduction is automatically calculated on Schedule M a Schedule M can be completed directly in the To Surviving Spouse grid b No values will carry from the other schedules c Additional information must be entered manually Distributions to beneficiaries of the estate are entered on Schedule M page 2 line 5 a Specific bequests may be entered separately but cannot exceed the remainder b The remainder of the estate can be distributed as a fraction percent age or amount c The last heir receives any remainder The Unified Credit is 1 730 800 which is equivalent to sheltering 5 000 000 of the taxable estate The amount used in computing the 2 portion of estate tax payable in installments is 1 340 000 The Generation Skipping Transfer Tax GST exclusion is 5 000 000 in 2009 The Credit for State Death Taxes was repealed in 2005 There is now a State Death Tax Deduction Schedules P Q R and R 1 are not listed in the Recapitulation Schedule P is used to report foreign death taxes and any credits b Schedule Q is used to calculate credits from tax
239. ocial Security Number 847 45 6800 C Enter 50 in the Percent of distribution field income is required to be distributed the program will allocate all of the Since only one beneficiary has been entered to this point and all the income to Alan s K 1 until another beneficiary is entered D Click the Next button on the input form control bar The input form control bar will show 2 of 2 indicating there are now two beneficiaries E Enter the following information for Josh Smith e Beneficiary s Name Josh Smith e Street Address 1210 East Brown Road e Zip Code 85286 e Social Security Number 748 54 7847 F Enter 50 in the Percent of distribution field Step 19 Two Year Comparison Alan wanted a two year comparison report so he could identify any signifi cant changes in amounts reported in the current year versus the amounts reported in the previous year In Step 7 Preparer Options the Two Year Comparison box was checked However because this is a new client the previous year amounts must be manually entered In subsequent years the report will be updated for the prior year amounts A In the Forms pane scroll down and click 2YR 2Yr Comp P1 B Enter the following amounts for the prior year e Interest 3 142 ELL 1041 Sample Return 217 e Dividends 783 e Capital gain loss 3 212 e Total income 7 137 Taxes 712 e Fiduciary fees 250 e Total 962 e Adjusted total income 6 175 e Income distributi
240. om the account noted on Form 8888 line 3 next from the account noted on line 2 and finally from the account noted on line 1 e Other Offsets If the taxpayer owes past due amounts to any Treasury Department Financial Management Service FMS the amount will be deducted first from the account with the lowest rout ing transit number second from the next lowest routing transit num ber and third from the highest routing transit number deposit information in the EFW grid on the General Information screen Deposit information for Financial Products should be entered on the Bank input screen gt If you are processing a return with a financial product do not enter 12 Verify the federal and or state information in the Government column If changes to the state s need to be made they must be changed in the File State Return s Electronically grid 13 Select Federal Account 1 2 or 3 in the Same as Federal column if you want the state bank account information to mirror one of the federal accounts If you want different account information leave the column blank By checking this column information entered on one of the fed eral lines will default to the state line in the Financial Institution Name Routing Number Depositor Account Number and Account Type col umns 14 The Financial Institution Name column is an auto fill library field Enter the institution name or click the drop down box and highlight your selection
241. on Bar Status Bar io indian Eie g t iow Fams Mire Setimge Workbonch otalictione Hog gt j 5 amp os clLnY L amp G Ha alo r bw STAR Cents Asse TE Sate Detail Peek Revew Audis us Close Ak Conal Alene Update We have designed the program to look and feel like other Windows based programs Movement throughout the program is based on Windows functions you should be familiar with For example click with your mouse to select an item hold the mouse key down on a part of the screen to move expand or reduce the screen drag the scroll bar to move the form up or down This manual is to be used as a reference item You can also find answers to many questions by clicking the Help menu and selecting the desired topic or right click with your mouse on any input field When the program is initially opened the Client Selection screen automati cally appears Double click on a client or click New in the top left corner of the Client Selection screen For information on entering a new client refer ence the Tutorial section You are now viewing the Workspace There are three bars within the program B General Information Advanced Bets 2 Liter Te Disaster Rear Header see Helps f equi tors panier reum Exemples inde dsasier reel and specs elections i iniermation wil rrt oniy on the amended reum The incrmaten may er may Button Bar The b
242. on Wizard m o E3 Start Page Other Settings Serial Number There are many other settings you should review as we have only configured a few Review these items in the s Firm Data Page 1 Install Information Firm Data Page 2 Preparers Security Invoice Security Page 2 Printer and Delivery Distribution Sets Security Page 3 Custom Letters Printer Software Changes System Updates Back Finish emet Co tele Step 5 You may be prompted to install the sample returns Click Yes if you would like them loaded on your computer otherwise click No Step 6 After the initial configuration wizard steps have been completed the client selection screen should open If you need to setup and or configure the software on other machines in your network repeat the Program Installation and Initial Configuration procedures Updates To reconfigure Update settings select the Installations menu Check for Updates will run through a process to see if any new updates are available Configure Update Options allows you to change any prior settings 20 Hotfix Release Notes will display information on changes made in each update version of the tax software Settings Workbench Installations Help Aa 9 JJ Check for Updates Clients Assets Fer Configure Update Options y Audit 2t Hotfix Release Notes AX Load Soft Fonts Installation 21 General Instructions Menu Bar Butt
243. on deduction 2 963 e Exemption 300 e Total deductions 3 263 e Taxable income 2 912 e Total tax 107 Tax due 107 Step 20 Reviewing the Return Now let s review the return The program will produce Form 1041 pages and 2 Schedules K 1 for Alan and Josh the Two Year Comparison Worksheet the Accounting Income statement Schedule I the Allocable Shares Worksheet and detail statements A Click the Review button on the button bar The program produces audit statements that may provide useful infor mation or help identify trouble spots in the return Green audits which are reminders and information only audits require no further action However red audits must be resolved before electronically filing the return To correct an audit click Fix Now This will take you to the form and field in question where you can make changes If you notice that the Audit button on the button bar is inactive before you click Review no audits are present in the return You can suppress an audit by clicking the Click here to suppress button in the Suppress column Click Close to continue to Review mode Step 21 Create E File In Review mode you can create the e file and prepare it to send to the IRS and or state agency The Create E File s button appears above the list of forms if all red audits have been cleared Since we created this return in the 218 Samples folder you can click the Create E File s button and then a
244. one or more assets and clicking the Delete button Click Yes and then OK F Restore assets by clicking the Recycle button l Tag the assets and click the Empty button This will permanently delete these assets XE 3 Select the proper form and multiple 1f necessary to which the assets should be restored Use the Lookup link to find the proper multiple Asset Recycle Bin t3 Asset Name Asset ID E Backhoe Loader 2003 S 10 Pickup 2003 Small Tools 2004 Small Tools Desktop Computer 2 Tag assets to restore them undelete them and click the Restore button Restore Assets Sch C Multiple 4 Lookup 4 Click the Restore button LLL Enhancing Your Performance Q7 G Move assets by tagging the assets and clicking the Move button 1 Select the proper Move Assets form and multiple if For Sy 2 Click the Move necessary to which Mutiple button the assets should be moved Mt Cancel esc 3 Click Lookup to display a list of multiples noting the form descrip tion and multiple number Use this feature to quickly view and select the multiple to which the asset relates Multiple Form Lookup IE Double click on a multiple to select it and close this window Name Double click the multiple Rental House associated with the asset 2 Duplex Cancel Esc H Exit the Asset Tracker by clicking the Close
245. orm 8879 Form 8453 is a transmittal for certain forms that cannot be e filed Refer to Personal Identification Number PIN Program for detailed PIN and Form 8453 information 26 Enter a 5 digit PIN for the taxpayer and spouse if applicable 27 Enter a 5 digit PIN for you the ERO This number must remain the same on all returns associated with the ERO enter the 5 digit number for each Press Ctrl D on each field to set the default Click OK PINs will only be activated if a signature date is entered To default the taxpayer spouse and ERO PINs for all e file returns 28 Only check the Taxpayer s entered PIN s box if the taxpayers entered their own PINs 29 Enter the Signature Date gt Enter the letter T in any date field to auto fill the current date gt 30 After entering all tax and e file information check the return for EF Audits by clicking Review or Audits on the button bar Simplify the PIN process for repeat clients by using the Self Select PIN Program Refer to the Self Select PIN Program section 31 Click Fix Now to correct any EF Audits Click Review or Audits again if applicable If you cannot click Audits because it is dimmed this means there are no Audits to view C3 Audit Diagnostics Suppress uw Saat Click Fix Now to m access the field can oe in the return that fat requires attention 32 Verify that federal and state if applicable
246. ort term and long term according to the acquired and sold dates The sorting is accomplished when the return is processed C Click the Close button to return to the Schedule D Capital Gains and Losses screen Line 13 Capital gain distribution carries from the dividend input No gt Is required here 1f Schedule B is being used Click the green arrow button at the left of the input form control bar to return to the General Information screen Schedule D information was current when manual went to press gt Reference IRS documentation for any late changes EE H5 n RH OAUW s9 1040 Sample Return 43 44 Step 11 Schedule C 1 Richard owns a computer consulting business He started the business in California and moved it to Utah A On the General Information screen click on the Schedule C link on Zine 12 This will take you to the Schedule C Profit or Loss from Business screen gt Schedule SE for self employment tax will be generated automatically from the Schedule C information in the same state as the taxpayer s address on the General Information screen If the business relates to another state entering the state in this field will carry the business income loss to that designated state The two letter state code does not need to be entered if the business is B Richard s principal business is Computer Systems Design amp Related Services To find this place your cursor in the Principa
247. other files click More Click More to restore other files or Close to finish L R2 SEGSCLLLZEID ELOCLUL L AAN UONULULEBBADPDOOLL Q LQQ 2 2 222ZZ22ZZZS Restore 3 of 4 t3 File s to Restore Warning This will c ite any existing program data that exists on this path name Specify the destination path Tag File s to restore Restore Client File s to Path Name My T ax Files File Date Time Type SAMPLES BARDRISBBUDCGKHG_ 08 26 11 10 59 43 Tax Retum SAMPLES BRAD30ROCFOJ5KSD_0 08 30 11 15 23 44 Tax Return SAMPLES OUTD1G40530K528B_208 26 11 10 59 50 Tax Return SAMPLES ROBEPBKDBTAQIYHT_ 08 26 11 10 59 51 TaxRetum SAMPLES SAMPMJ7CSVBBHIGS_1 08 26 11 10 58 51 Tax Retum SAMPLES SHOUGAY70M505971_2 08 29 11 16 02 20 TaxRetum Click to perform SAMPLES TRAC63S2DLPH87GH_4 08 29 11 16 05 11 Tax Return the restore SAMPLES WALNO3EMY5S68911_7 08 26 11 10 59 56 TaxRetum SAMPLES WILLEKSIBAAPWOCO_0 08 31 11 09 07 08 Tax Retum operation SAMPLES XJEAUTV7VFXBHFJN_ 08 26 11 105858 Tax Rel i i Cancel Help m m m E Auto Client Backups The program will automatically back up the client file each time you click Close or Clients You may also back up clients using the Copy feature on the Client Selection screen Instruction Letters Letters are a convenient way to correspond with your clients The program has included the ability to pri
248. ou Next gt Print Delete Close esc Help Helpful E File Tools EF Settings We have included several options to help simplify the e file process and cre ate more accurate e file returns These tools can be accessed by clicking the Settings menu selecting EF Settings and clicking the EF Switches tab Tag the items you want to activate Click OK to save the changes and exit Check to prompt for reentry EF Settings of key efile information EF Switches EFIN Batches Check to view anticipated refund cycle dates on the m Verify Key E file Information This will prompt for double input of key items toolbar IV View the EF Refund Timing on the Toolbar View the Preparer Fees in Send Clients Default Federal EF for all 1040 Clients IV Default all States EF for all 1040 Clients that prepa rer fees were Suppress Create E file Confirmation for Direct and State Only E files entered in the client return If participating in Financial Products check to validate IV Suppress Filing Options JY Allow for Transmitting Directly to the Filing Center From Create E File Check to default efilin r r Print E File Signature Authorization forms when EF Audits exist in the return return all 1040 federal returns cannot be transmitted until all EF Audits are resolved Check to default e filing for User Specific Settings all 1040 state returns Check to allow sending Cancel Help returns di
249. ou printed the Confirmation Letter Click Yes or No A date will appear in the Printed E mailed column on the screen 12 You may also email Confirmation Letters The e mail address defaults from the entry on the General Information screen To edit or add an e mail address click Edit Enter the correct email address and click Save Tag clients and click E mail A message will appear confirming the email was sent Click OK email account This is due to the fact that some ISPs may block emails with From addresses that do not match the domain server Emails will be sent through the E File Center with the domain server and the From field matching The preparer s email address will be included in the body of the email You also have the ability to type a message to your clients before sending the email gt Emails sent through the E File Center are sent through an unmonitored information You can also right click on a client and select Quick EF ote From the Client Selection screen you can view limited EF Status lookup to view more EF Client information Step 5 Correcting Rejects If you receive an acknowledgment noting a return was rejected determine the error Error codes and business rules are explained in detail on the Acknowledgment Report You can also view rejects from the Overview screen under Pending Rejects or from the Database button which has sev eral reject links 1l After determining the reject problem return to
250. p arcades Arts Entertainment amp Recreation 713100 Animal food mfg Manufacturing 311110 Animal production including breeding of cats and dogs Agriculture Forestry Hunting amp Fishing 112900 Animal slaughtering amp processing Manufacturing 311610 Apparel mfg Manufacturing 315000 Apparel piece goods amp notions Wholesale Trade 424300 Aquaculture Agriculture Forestry Hunting amp Fishing 112510 Architectural services Professional Scientific amp Technical Services 541310 al Close Support Tool This feature is used to perform most of the program maintenance and special adjustments We recommend that you only use this feature as directed by Technical Support Client File Editor The Client File Editor lists the different input and output file calculations for the return that is currently open We recom mend that you only use this feature when directed by a technical support agent as any changes made here will affect the return Command Line Select this option to perform certain functions across systems or within a single return We recommend that you only use this feature when directed by technical support Initial Configuration Wizard Reference the nstallation Initial Configuration section Print Features The tax forms are approved for filing by the IRS and state agencies All of our forms print in a professional laser or PDF format We provide utilities that allow you to
251. p exe on your desktop and double click to begin the installation process The software requires Microsoft s MSXML 6 0 Service Pack 1 Microsoft Visual C 2010 and Net Framework Full If the prerequisites have not been installed the setup will attempt to download them from Microsoft s web site allow these prerequisites to be downloaded If you cannot download them from the software Setup please download and install them manually from Microsoft s website gt Some firewall applications or appliances may need to be configured to Step 6 Continue installation by following steps 5 through 9 of Install from CD page 7 8 Initial Configuration The Initial Configuration Wizard assists in organizing your user settings and configuring your network if applicable To use the program properly complete the information on each screen Step 1 Ifthe program is not already open double click the Tax Prep Software icon on your desktop The Initial Configuration Wizard will appear the first time the program is opened after installation Installation 9 Step 2 If the software is only installed on one computer in your office select Stand Alone Configuration click Next and skip to Step 8 If more than one computer in your office will have the software and will share data select Network Configuration click Next and continue to the next step Start Page Welcome to the 2011 Tax Prep Software Tell us about your computer
252. parers who prepared 100 or more MA Forms 1 and 1 NR PY during the previous calendar year are required to file electronically Preparers must continue to file electronically in subsequent years unless they prepare no more than 25 individual income tax returns Electronic pay ment of tax liability for e file individual income tax returns is encouraged but not required Payment may be made with the e file return or by the tax payer through the DOR s website The taxpayer may opt out of e filing but must file paper forms containing 2D barcodes 1040 Extension Personal Income Tax Extension requests with no payment or payments of 5 000 or more must be made electronically Extensions may be filed through the software 1041 Fiduciaries filing Form 2 with total Part A Part B and Part C net taxable income of 50 000 or more must use electronic means to make any payments to the Department Payments may be made through the DOR s website 1065 Partnerships filing Forms 3 and meeting the following income thresholds loss thresholds or with 25 or more partners must submit all Forms 3 and Schedules 3 K1 by electronic means Income threshold 1 50 000 or more in gross income or 2 100 000 or more received from the sale of stock and securities Loss threshold 1 50 000 or more in ordi nary loss from trade or business activities or 2 100 000 or more in losses from the sale of stock and securities 1120 All corporations subject to
253. penses gt Standard mileage rate is only available on individual returns All other J Ifa default method is not entered or the asset needs to be depreciated under a different method select the appropriate depreciation method K Click OK to add the asset The Asset Tracker will take you to the General tab for the newly added asset L If you do not wish to add the asset click Cancel The Asset Tracker will return to the last visible screen The following table gives the available types and their associated default lt gt depreciation methods Type Depreciation Method Land MACRS Straight Line Residential Rental Real Estate MACRS 27 5 Year Straight Line Res Rental Furn amp Fixtures MACRS 5 year Double Declining Balance Non Res Real Estate MACRS 39 Strait Line Machinery and Equipment MACRS 7 Year Double Declining Balance Furniture and Fixtures MACRS 7 Year Double Declining Balance Vehicles MACRS 5 Year Double Declining Balance Trucks amp Vans MACRS 5 Year Double Declining Balance gt 6000 GVW Vehicles MACRS 5 Year Double Declining Balance 6000 to 14000 GVW Vehicles MACRS 5 Year Double Declining Balance Computer Systems MACRS 5 Year Double Declining Balance Depr Computer Software 3 Year Straight Line Depreciation Amortization Nonrecovery Amortization Improvements MACRS 15 Year 150 Declining Balance Indian Reservation No default method selected Water Utility Property MACRS 25 Year Straight Line Qu
254. ply The taxpayer will be subject to a 50 per tax document penalty for failing to electronically pay the balance due The Department cannot abate the pay ment penalty for reasonable cause New York City As of January 1 2011 tax preparers who prepared more than 100 original New York City General Corporation Tax or Unincorporated Business Tax documents in calendar year 2010 including tax documents for prior periods and used tax software to prepare one or more corporation tax documents in 2010 must electronically file New York City Forms NYC 3L NYC 4S NYC ASEZ NYC 204 NYC 204 EZ and NYC EXT and submit the payment electronically The software will only support NYC 204 and NYC 204EZ OH Paid tax preparers who filed more than 75 tax returns during the 2008 calendar year or during any subsequent year must beginning on Jan 1 2010 use electronic filing technology to file state income tax returns This requirement does not apply to paid tax preparers who during the previous calendar year prepared 25 or fewer tax returns The law provides that the tax commissioner may impose a 50 penalty for each return above 75 that is not filed but should have been filed by electronic technology OK Preparers who prepare more than 50 individual income tax returns in the previous tax filing season are required to e file all individual income tax returns There is an opt out if the taxpayer indicates on the return that they do not want the
255. ply with its terms and conditions If this Agreement is terminated you shall immediately discontinue all use of the Software delete all copies of the Software and return the Software to Licensor All provisions of this Agreement which must survive in order to give effect to its meaning will survive termination or expiration of this Agreement 2000 LLL License Agreement 5 Disclaimer of Warranties The Software is provided AS IS without war ranty of any kind While Licensor is providing the Software as a general tool to assist you in preparing and or filing tax returns the entire risk as to the results and performance of the Software is assumed by you Licensor does not warrant guarantee or make any representations regarding the use of or the results of the use of the Software in terms of correctness accuracy reliability or current ness THE SOFTWARE DOES NOT REPLACE YOUR OBLIGATION TO EXERCISE YOUR INDEPENDENT KNOWLEDGE OF TAX RETURN PREPARATION AND JUDGMENT IN USING THE SOFTWARE THERE ARE NO EXPRESS IMPLIED OR STATUTORY WARRANTIES OF ANY KIND ARISING OUT OF OR RELATING TO THE SOFTWARE OR THIS AGREEMENT INCLUDING WITHOUT LIMITATION ANY IMPLIED OR OTHER WARRANTIES OR i OF MERCHANTABILITY OF FITNESS FOR A PARTICULAR PURPOSE NON INFRINGEMENT WORKMANLIKE EFFORT QUALITY ACCURACY TIMELINESS COMPLETENESS TITLE QUIET ENJOYMENT NO ENCUMBRANCES NO LIENS OR SYSTEM INTEGRATION ii THAT THE SOFTWARE OR ANY PART THEREOF
256. pplicable e file processing center You can speak to a live attendant or leave a message The IRS e help telephone number is 1 866 255 0654 Form 8453 Form 8453 will only be generated if the return contains forms or support ing documents that are required to be mailed to the IRS for e filed returns These include Rev Proc 2009 20 1098 C 2848 3115 3468 4136 5713 8283 8332 8858 8864 8885 and 8949 Form 8879 will also be generated and must be signed by the taxpayer s and ERO Internal Revenue Service Attn Shipping and Receiving 0254 Receipt and Control Branch Austin TX 73344 0254 individual state e file handbooks or view the state requirements from the gt State Signature document requirements vary per state Reference the E File Center Overview screen State EF Information link 1040 Modernized e File MeF MeF stands for Modernized e File The IRS has used this platform when e filing business returns for several years The IRS is migrating individual returns to this platform in a three phase process All of the work is done by the software behind the scenes What you will notice is near real time transmission and acknowledgments A response time of about five minutes should be expected during non peak periods Drains still apply if returns do not meet MeF criteria requiring e file returns to be filed under the Legacy platform used to e file individual returns for years MeF will also allow filing of prior ye
257. print federal and state returns together or separately batch process a group of clients and print blank input and output forms We have a utility called the Form Filler that provides supplemental forms not sup ported in the tax systems Tax year 2011 federal and state forms and laws are in various update stages You will notice a DO NOT FILE message on some forms Included in this message is the date you can anticipate the release of the form If the current date is later than the date printing on the form use the upgrade feature to receive final forms that are approved and ready to file or the revised release date Please do not call Technical Support with questions on forms until the DO NOT FILE message is no longer displayed Several states have 2D barcodes on the forms This feature helps states pro cess returns more efficiently Original copies of 2D barcode forms must be submitted to the state for processing In addition to the print features discussed in this section you can duplex print the tax return To do so click the Settings menu and select Printer amp Delivery Settings Check both the Print forms in PDF format box and the Duplex Print box You can also duplex print any worksheet associated with the return by checking the Duplex Worksheets box Click OK to save the changes Distribution Sets Distribution Sets are a convenient way for you to print sets of forms for your specific needs Click Settings and select Distributio
258. print more than one return at a time Or maybe you want to print a State Only return You can do this through the Batch Process feature 130 Select the Process Option Click the Clients button From the Client Selection screen tag the client s you want to batch process Click the Utilities menu and select Batch Process Click the Process Options drop down box and make your selection Click Process Client forms included in the selected Process Option will print s Batch Process Process Options Process O nly Advanced Printing Advanced printing allows you to print the return by sets and save the return in PDF Continue to the next section for details on this feature Advanced Form Delivery Advanced Form Delivery is a powerful tool that allows you to print and save returns You can perform the steps individually or all together To access the Advanced Form Delivery screen 1 2 Click the Clients button Highlight a client and click Open While in a client s return click the Review button Close the Audit Diagnostics screen if it appears Click the Adv button located on the option bar in Review mode Make the desired selections or use any defaults that appear Reference Print Features Setting Print Defaults Print Features 131 5 Click the Start Job button to perform the options selected on the Advanced Form Delivery screen Advanced Form Delivery c P
259. pt Organizations must be e filed 5500 All 5500 Annual Return Report of Employee Benefit Plans must be e filed If you fall into any of the mandates and do not currently e file you are required to apply with the IRS to obtain an EFIN Reference How to Become an IRS E File Participant at the beginning of this section 777 E n Filing Returns Electronically 185 186 State Mandates AL 1040 Preparers who prepare more than 50 individual income tax returns and use tax preparation software must file all returns using elec tronic means Electronic means include electronic filing or printed returns with 2D barcodes Taxpayers not wanting to electronically file must com plete an additional Opt Out form Form EOO Taxpayer E File Opt Out Election form This form must be completed and attached to the taxpayer s printed 2D barcode return All business returns must be filed electronically 1120 1120S 1065 If an income tax return preparer prepares 25 or more acceptable original corporate partnership income tax returns using tax prep aration software in calendar year 2011 all acceptable corporate partnership income tax returns prepared by that income tax preparer must be filed using electronic technology There is no opt out provision CA Preparers who prepare more than 100 individual income tax returns during a calendar year are required to e file all individual income tax returns T
260. r The total amount will carry to the field The field will change to a peach color indicating it was detailed Calculator Ctrl R An independent calculator can be used to per form simple calculations The calculator can be accessed four differ ent ways 1 Click the Utilities menu and select Calculator 2 Press Ctrl R 3 While in a numeric field enter a number and press the plus key on the 10 key pad Add or subtract numbers using your 10 key pad When you press Enter the calculator will paste the total to the highlighted field 4 While in a numeric field enter a number and press the minus key on the 10 key pad Add or subtract numbers using your 10 key pad When you press Enter the calculator will paste the total to the highlighted field gt To turn off the automatic Paste feature uncheck the Paste value when is pressed box on the calculator Click to deactivate the Paste Amount feature 10 Key Catur OD This is the Tape section sim ne ER i to a desktop calculator Click to store a number T to clear the memory wa n 5 c 2 9 Click to recall a displayed number Click or press Ctrl P to Hu paste the value into the program Paste V Paste value when is pressed Notes Ctrl N This function allows you to type notes within a client s return The notes will print with the return Only notes entered under
261. r a code description and the discount amount or percentage While working in the client select INV Invoice and enter the applicable code in the Discount Code section Edit City Tax Info Select this option to view and edit city information Libraries When you start to type an entry that resembles one you typed before the program can auto complete or auto fill the entry for you in certain fields because it has been saved in a library 1 e Interest Income description on Schedule B Each system has a separate library Select this option to view edit or delete entries that have been stored in a library Employer Library Employer information entered on W 2s and 1099 Rs is stored in the Employer Library When entering W 2 and 1099 R Employer ID Numbers the employer s name and address will auto complete 1f the EIN has been entered previously Select this option to delete or edit information RTN Library Routing transit numbers entered for financial institutions are stored in the RTN Library Select from the bank names previously entered to auto fill the RTN Use this option to view add edit or delete information Colors Reference the General Instructions Colors section LLL Utilities Settings and Workbench Menus 123 124 Workbench Some of the items listed under the Workbench menu are utilities used by the Technical Support staff to resolve problems or questions you may have The following are Workbench item
262. r another W 2 with the same EIN the address and employer name will auto fill saving time and keystrokes For any state with localities the Locality name drop down box will display the related locality options Use the F3 key to scroll up the W 2 Screen and F4 to scroll down You can also use the mouse to scroll up and down the W 2 Screen If a client was updated from last year the W 2 s will show in the grid ready for entry of wages for the current tax year If the taxpayer s employer has changed and you would like to clear the grid click Remove all After entering all W 2 s for the Taxpayer and Spouse hit Alt N Filing Information Screen The Filing Information screen will appear The screen is divided into three sections Electronic Filing and PIN Financial Products and Income or Deductions f STaR Wizard Woks Filing Information w 2 gt Elling Information Preparer PIN 123485 Signature Date 04 15 2012 Electronic Filing and PIN Taxpayer PIN 12345 Taxpayer Spouse entered PIN o Spouse PIN 12345 Click here to select bank Financial Products products TH Click here to fill out bank products i I Deducti Click here to return lox c jn Firme or Dedit H Click here to show the Income or Deductions page Income or Deductions page Electronic Filing and Pin You will need to enter the Preparer PIN and the Taxpayer and Spouse s five di
263. re made to the beneficiaries gt The ncome distribution deduction on line 18 is pulled from Schedule B The program automatically enters an exemption amount on line 20 of gt Form 1041 based on the type of entity selected in the Heading section of the return ME om Gl 1041 Sample Return 215 216 Step 13 Form 1041 page 2 Schedule A The Smith Trust is a simple trust Therefore no entries are made in the Schedule A Charitable Deduction section of the input screen Step 14 Form 1041 page 2 Schedule B The program automatically completes Form 1041 page 2 Schedule B for simple trusts Use the Tier 1 and Tier 2 Allocations grids to report required line 9 and discretionary line 10 distributions Step 15 Form 1041 page 2 Schedule G The total tax amount on line 23 of Form 1041 page 1 is pulled from Schedule G on page 2 of Form 1041 The tax due for the Smith Trust is 1 146 This amount is computed on Schedule D part V using the maximum capital gains rates The program makes an entry on line 1a of Schedule G noting that the amount is Schedule D tax Step 16 Form 1041 page 2 Other Information A The Other Information section is located at the bottom of the Form 1041 page 2 input screen Line 1 is automatically answered based on income information entered on page 1 of Form 1041 As the Smith Trust had 783 of tax exempt interest income the box for line 1 is automati cally checked Yes and 783 is entered
264. rectly to the Filing Center bypassing the need to log into the E File Center 156 Refresh EF Status We have included columns in the Client Selection screen that allow you to view e file and bank statuses without going to the EF Center You must have Internet access to update information to the Client Selection screen However if you are running on a network other computers without Internet access can view the status after it has been updated To update the e file and bank statuses on the Client Selection screen tag the clients and click EF Status on the button bar The current e file statuses will appear in the EF Fed Status EF State Status and EF Bank Status columns If more than one state was e filed the resident state will appear in the EF State Status column Click to update and view e file and bank statuses Tod Cien 2 Step 2 E File Center The program has a powerful e file command center The E File Center allows you to send view and track e file and Financial Product information from one location With this feature your information will reside on a secure server instead of on your network or hard drive This eliminates lost transmissions acknowl edgments check print records as well as several keystrokes You can access the E File Center anywhere you have internet access Filing Returns Electronically 157 e e E File Center Login In order to ac
265. reen will appear asking if you want to remove the client file s from the server Click Yes or No Click Close g Download Clients File name to Download File1 Client files will be downloaded into the curent eS Choose one of the following options in case a cli Gen s same SSN EIN and filing status TR exist C Duplicate Existing Clients qe that client exists th more ats ih he sane name and SENEN then the client will be duplicated Cancel Help vents Existing Cons If exacti one copy of Enter the file name previously assigned Client files uploaded to the server are automatically deleted two weeks from the date the files were uploaded 138 Update Systems You can set up the program to automatically update systems during the Initial Configuration set up If you did not set up Auto Updates in the Initial Configuration section but you would like to or if you would like to manually download and install updates reference the Installation System Updates section weeks ahead of CD mail delivery If updating on a regular basis CDs gt When updating systems through the Internet you are approximately three received in the mail do not need to be installed Per Unit Process PUP Codes If you purchased a limited use package or need to process states or systems that you have not purchased a PUP code must be obtained in order to pro PUPs cess returns of this type There are t
266. returns are sent to the IRS with the fed eral return They cannot be sent after the federal has been accepted they must be sent initially with the federal You can only file ONE state return piggyback Piggyback state e file clients will appear on the E File Center Send Clients screen with the state noted in the State column The federal e file return will have FED noted in the RS column All states except CA IL MA ME MN and PR can be sent piggyback State Only SO State Only returns are sent to the IRS separate from the federal return You can e file MULTIPLE State Only states per client State Only e file clients will appear on the E File Center Send Clients screen with the state noted in the State column If a federal e file return is sent it will appear on a separate line with FED noted in the RS column State Only states include AL AR AZ CO CT DC DE GA HI IA ID IN KS KY LA MD MI MO MS MT NC ND NE NJ NM NY OH OK OR PA RI SC UT VA VT WI and WV Direct Direct state e file returns are sent directly to the state separate from the federal return You can e file MULTIPLE Direct states per client Direct e file clients will appear on the E File Center Send Clients screen with the state noted in the State column If a federal e file return is sent it will appear on a separate line with FED noted in the RS column CA IL MA ME MN and PR can only be sent as Direct states EL Filing Returns E
267. rint button C To print specific forms tag the forms you want to print by checking the box next to the form in the Output Forms list Select Tagged from the Print drop down box and then click the Print button D To print only one specific form highlight the form make sure Page is selected in the Print drop down box and click the Print button E To save the return in PDF file tag the forms you want to save and click the Adv button In the Save section of this screen select Tagged from the Set drop down box Click the Browse button to find the appro priate location Click the Start Job button Step 24 Exiting the Return When you are finished printing or viewing the return use the following steps to exit A Click the Clients button on the button bar This will take you back to the Client Selection screen B Or you may click the Close button on the button bar This will close the client You can then exit the program by selecting Exit from the File menu computer If you have installed the ArkWorks program you can automati Saving a return will save the PDF file in a location that you specify on your cally archive tax returns to ArkWorks by clicking the ArkWorks button Congratulations You have just completed the 1065 Sample Return O Tcv 1065 Sample Return 235 Other Systems 706 Estate Tax Frequently Asked Questions 236 Q What is the due
268. rm 4562 and a Detail Statement The program will also produce a Self Employment Worksheet a Federal Depreciation Schedule a Partner s Summary Schedule M 1 explanation Partner s current year increase decrease worksheet an instruction letter for the Partnership a K 1 letter with each K 1 an invoice and state forms A Click the Review button on the button bar B The program produces some audit statements that may provide use ful information or help identify trouble spots in the return This return should produce only one green FYI audit However if you do see some audits while processing client tax returns they should be resolved before filing the returns if possible green audits which are reminders and FYI information audits require no further action Step 22 Compare 1065 Pages 1 5 Schedules K 1 In the Samples directory you will find a copy of the AbleBaker Bookstore return Review the return print out Form 1065 pages 1 through 5 and Schedules K 1 Compare them to the return that you have entered in the Tutorial folder Step 23 Printing the Return You have various options for printing A You can print or save the return B There are several ways to print all of the forms 1 Click the W in the Print drop down box and select All Then click the Print button 2 Select all of the forms by clicking the checkbox at the very top of the Output Forms list Select Tagged from the Print drop down box and then click the P
269. rns for individual income tax that are eli gible for electronic filing 2 When the taxpayer refuses to allow the return to be filed by electronic data submission and the tax return preparer notes the refusal in the taxpay er s records or 3 When the tax return preparer has been granted a waiver from mandatory participation under section 05 MI The Michigan Department of Treasury mandated electronic filing for both individual income tax and single business tax returns Preparers completing 10 or more personal income tax returns are required to e file all eligible returns that are supported by their software MN Preparers who prepared more than 100 individual income tax returns in the previous tax filing season are required to e file all individual income tax returns Exceptions 1 Joint returns where both reciprocity and form MINR are required to file or 2 the SSN was used erroneously on a previ ously e filed return The preparer will be fined 5 per return for each return filed on paper NE Preparers filing 11 or more returns may be required to file them electronically NJ Practitioners who prepared 25 or more returns will be required to file returns electronically NM Preparers who prepared more than 25 individual income tax returns in the previous tax filing season are required to file all returns using elec tronic means Electronic means includes electronic filing or printed returns with 2D barcodes NY Ind
270. rs input screen If you open the Custom Letters utility from the Letters input screen and add letters sections you will need to move from the Letters input screen and then return to it before the new letters sections will be available to select Now that we have made our Custom Letter choices we are ready to review the return Step 22 Review A B C D Click the Review button on the button bar The Audit Statements screen will appear These are concerns that have come to the program s attention while the return was processing When possible suggestions to resolve these concerns are given If available click the Fix Now link in the Go column to resolve these situations If any red audits appear they must be corrected before you will be allowed to e file the return Click the Fix Now link to correct one of the red audits for the US third party designee This will take you directly to the 7hird Party Designee section on the Form 1040 page 2 input screen E Enter the following information e Name Your Name e Phone number Your phone number Personal ID number 12345 F Click the Review button again The remaining audits are meant to make you aware of various items within the return but for this tutorial we do not need to make any further changes Step 23 Create E file In Review mode you can create the e file and prepare it to send to the IRS and or state agency The Create E File s button appears above the
271. rts can be printed saved as PDF files exported as Excel Files or e mailed 4 Click Close to return to the E File Center 5 At any time you can tag the report and click Archive to remove the report from the screen if desired Database The E File Center Database is a convenient utility to help you track the bank status on clients that have been transmitted to the E File Center From the E File Center click the Database button Click to view clients with pending bank products Click to view various ban client situations Click to view clients with unresolvable bank products Select the desired database option system 1040 v All All Federal At Filing Center AHRS At the State ALIRS State Rejects Federal State Rejects Currently Rejected Accented Federal PiggyBack States Pending Bank Products State Only Direct States Accepted States All Bank Products inresolvable Rejects Federal Bank Products lvabl k Pr State Bank Products Accepted RALs Accepted RTs Common Pending Bank Products Click to view bank clients with pending bank products These include nonfunded and partially funded clients Bank All Bank Products Click to view all bank clients and asso ciated bank products Bank Federal Bank Products Click to view federal bank clients only Bank State Bank Products Click to view state bank clients only Bank Accepted RALs Cli
272. s Following are shortcut keys mentioned throughout the document or dis played on the STaR Wizard screens Breadcrumb Click desired topic at top of screen to access the related wizard screen Jump to Input Forms Click to exit StaR and jump to the Standard input screens and other tax forms STaR en Espa ol Displays the STaR Wizard in Spanish Hot Keys Displays a screen listing all of the Hot Keys Opens program helps Exit Exits the STaR Wizard Back Returns you to the previous screen EE Enhancing Your Performance 77 78 Next Click to advance to the next input screen Keys noted in the following chart allow you to perform all entries using the keyboard versus the keyboard and mouse STaR Hot Keys Functionality within the STaR Wizard Enter Key Select Next Required Entry Tab Key Select Next Field Spacebar Toggle Checkbox Selection Page Up Navigate to Previous Screen Page Down Navigate to Next Screen F1 Opens the Helps F2 Selects next required entry F3 Form W2 scroll up F4 Form W2 scroll down Selects highlighted item from grid list Scrolls up a grid list Scrolls a grid list down Inserts today s date in a signature date field Navigate to Previous Screen Navigate to Next Screen Access Hot Keys Summary Jump to forms input Allows entry of Alpha Numeric characters in SSN field
273. s which consist of account number security question answer to your security question and e mail address you entered during your initial login Click Submit to have your user name and password emailed to you Once all the security questions are answered correctly your usemame password will be sent to the e mail address you provided us when you created your login Security Questions What is your user name What was your security question Mother s maiden name Secret Answer What was the e mail address you provided for recovery purpose m eo 23 Access your email account to retrieve your login user name and password information 162 E File Center Overview The Overview screen is the command center It is from the Overview screen that you will access all e file and bank features and information E File Center buttons The following buttons are located across the top of the E File Center screen E Overview Links to the Overview screen covered in items 1 through 19 B Send Clients Links to the Send Clients screen where you will transmit e file and bank returns to the Filing Center B Acknowledgements Links to federal and state Acknowledgments and Confirmation Letters B Database Links to the Database screen allowing you to select and view e file and bank status information on clients that have been tran
274. s available in the software and can be accessed through the Standard input screens You cannot electronically file the return without a valid SSN or ITIN however you can still use STaR to prepare the majority of the tax return Assuming the taxpayer has a SSN or ITIN enter the nine digit number in the SSN field After entering the number the number will be hidden masked You will be prompted to Re key SSN Rekey the SSN and if the second number differs you will be prompted to correct the number or Start Over If you choose to start over click Start Over to clear the previous entries You can then re enter the SSNs This will increase the accuracy of the tax return Stak Wizard Joey Taxpayer s Social Security Number Taxpayer Social Security Number SSN Re Key SSN 121 00 1111 STaR en Espa ol __ Jump to Standard New Client After typing the same SSN or ITIN in both entry boxes you can proceed to the next screen by hitting ENTER on the keyboard If the client SSN matches one that already exists in the database the follow ing screen will appear Client File Exists client file with this SSN EIN already exits Doyouwantto Open the existing client file Create a new client file Dres You may continue with the data entered previously by clicking OK If you move the radio button to Create a new client file a new instance of the client
275. s you can access without Technical Support assistance Workbench Security i List Business Codes X3 Support Tool E Client File Editor 1E Command Line J gt Initial Configuration Wizard Import from RedGear Accounting Import from Creative Solutions Import from Easy Acct Import from QuickBooks Import from Microsoft Office Accounting Import from Other Acct Software E Security Reference the Enhancing Your Performance Security sec tion B List Business Codes Select this option to view the Business Code List Business Code List EE Principal Business Product or Service Business Activity Business Code Activities related to credit intermediation including loan brokers Finance amp Insurance 522300 Advertising amp related services Professional Scientific amp Technical Services 541800 lgents amp managers for artists athletes entertainers amp other public figure Arts Entertainment amp Recreation 711410 Air transportation Transportation amp Warehousing 481000 All Other specialty trade contractors Construction of Buildings 238900 er miscellaneous store retailers including tobacco candle amp trophy sl Retail Trade 453990 All other motor vehicle dealers Retail Trade 441229 All other personal services Other Services 812990 All other professional scientific amp technical services Professional Scientific amp Technical Services 541990 Amusement parks am
276. screen option 4 Scroll to the Type of Return and Referral section Select how you want the return filed from the drop down box This is optional but will create an audit 1f information entered on the return does not match your selec tion 5 Inthe Electronic Filing and Direct Deposit Information section check the File federal return electronically box Select the Gl screen option St u Le ees erties so Sot tet sn View the anticipated refund date Type of Return and Referral Check the box to File federal Select the type of return from return electronically the drop down box to allow the program to audit ensur ing the applicable entries Click to access input to file a have been made zd ie ed state return electronically Fiete Make required PIN entries to produce signature Form 8879 Click to enter electronic funds withdrawal or direct deposit information thdrawal Practioner FIN Program z345 zoas izsas p3 15 2012 6 To file the state return electronically click the File State Return s Electronically grid 7 Verify or enter the two letter state code in the State column eo Check the EF column to file the state return s electronically 9 The State EF File Type column will auto fill If you would like to change the file type click the arrow for the drop down box Select the desired e file type Piggyback and Direct are the defaults Piggyback can only b
277. se the auto fill feature 10 Click OK to continue 11 Click the Vehicle tab to enter the remaining actual expenses 12 Since the Suburban is over 6 000 pounds notice that the Options drop down box already shows 6000 to 14000 GVW Suv This will suppress the passenger automobile limitation 13 Enter the following additional information Parking and Tolls ccce 300 Interest Expense oore rcikirerinke ries 1 473 Gasoline and Oil es 3 266 D Click the Close button to return to the Schedule C input screen Step 14 Adjustments Richard and Stephanie have been contributing to individual retirement accounts each year They put the maximum deductible contribution in for each of them Neither of them is covered by an employer s plan Since Richard is self employed he is eligible to deduct his insurance premiums on Form 1040 page 1 Let s make the appropriate entries A On the General Information screen scroll down to the Adjustments section B Click on line 29 Self employed health insurance and enter 7 280 in the Taxpayer field C Click the Retirement Plans link on ine 32 IRA contribution D Enter the number 1 on the RA contribution line for both the Taxpayer and Spouse fields This allows the program to calculate the maximum deductible IRA contribution for both Richard and Stephanie E Click the green arrow button at the left of the input form control bar to return to the General Information screen
278. see Electronic Filing E File Center 61 94 141 190 EF Settings 34 121 122 143 144 150 156 Electronic Filing Identification Number EFIN 14 142 143 170 185 200 Electronic Filing 1040 E File 142 177 178 1041 E file 181 182 1065 E File 182 1120 E File 183 1120S E File 183 990 E File 180 181 Acknowledgments163 167 172 Alerts 163 165 172 178 202 Archive 141 163 167 172 176 Audits 218 Balance Due 145 Batch 142 143 Business 147 168 177 180 CADE Customer Account Data Engine 178 179 Center See E File Center Control Data 122 Confirmation Letter 163 167 168 Create E File s 55 149 150 165 168 184 218 219 Credit Card 147 Database 163 168 170 197 204 Declaration Control Number DCN 142 Default EFIN 14 143 Direct Deposit 53 144 147 191 Direct States 144 151 Drain Times 178 180 184 EFIN See Electronic Filing Identification Number Simulation 170 174 Election 155 156 Electronic Funds Withdrawal 53 144 147 179 212 Electronic Return Originator ERO 148 152 154 177 181 183 196 Email 168 Enrollment 76 160 164 174 191 200 Exempt Organization 990 180 185 Extensions 142 164 174 179 180 Federal 142 144 145 146 151 156 163 165 168 178 180 183 Federal Mandates 236 Financial Product Enrollment 76 164 174 Force New DCN 193 Forms 55 149 169 178 180 184 Form 8453 148 149 155 177 Form 8633 142 181 183 Form 8879 109 142 144
279. side of the Overview page in the E File Center For security reasons we do not recommend the sharing of User Name and Password information 5 Enter your e mail address for recovery purposes and verify the e mail address Select a security question and provide the answer Filing Returns Electronically 159 6 Click Submit o9 You have succesfully updated your profile 32 Center Login 2011 aA User Name Password Forgot User Name Password Keep me logged in First time logging in Are you the administrator 7 You have successfully completed the Security setup 8 You will be asked to re log into the E File Center using the new password you just set Reenter your User Name and the new Password Click the Log In button You are now in the E File Center You may also click the Manage User link at the top of the screen to reset your own password The first time you log in with your new password a screen will appear gt suggesting you create additional User Names for your office There will also be a Financial Products enrollment screen which may be bypassed by clicking Proceed to the E File Center Sendtiens Adknowiedgemenis Database Bank Report system 71048 e o mee Click Security to reset or recover existing passwords Held At Filing Center Schedule A gt To reset existing
280. smitted to the Filing Center IRS states and bank B Bank Links to the Bank screen allowing you to view and print bank checks and view a summary of information and items received from the bank B Reports Links to the Reports screen allowing you to view and print various e file and bank reports Also includes Archived e file and bank reports Alerts and other times that were previously viewed ni 1 Held At Filing Center 1 9 Schedule A 1 Account Displays your account number for quick reference 2 Overview Displays the main screen which allows you to link to features where you can perform e file and financial product tasks 200000 LLL Filing Returns Electronically 163 164 3 System Selection Drop down box allows selection for specific e file systems 4 Espa ol Toggles to a Spanish version of the E File Center 5 Manage User Allows you to reset your password and related security items 6 Security Allows you to secure E File Center options by user 7 Log Out Allows you to log out of the E File Center 8 Search Allows you to track returns by SSN EIN or last name and view detailed client information 9 Return Mode There are three e file return modes E Standard Use when working with regular e file returns E Extensions Use when working with e file extensions E Other Use when working with other e file returns e g amended returns 10 Samples
281. ss Enter N Click OK to continue Step 6 General Information A The first interview input screen will appear This is the General Information screen Notice that the taxpayer s and spouse s names social security numbers birth dates and address have all been carried from the New Client screen The Title field is used for such things as Jr II MD etc We do not need make an entry in this field for the Jones return Enter the taxpayer s and spouse s occupations EE 1040 Sample Return 37 Richard owns a computer consulting firm and prefers Self Employed as his occupation Stephanie is a Web Designer for Web Design Inc The occupation field 1s an auto fill library gt Enter their phone numbers Their home phone number is 801 555 3254 Richard s work phone number is 801 555 1212 Richard s cell phone number is 801 555 0777 Richard s work fax number is 801 555 1213 Stephanie s work phone number is 801 555 0659 Stephanie s cell phone number is 801 555 0776 Stephanie s work fax number is 801 555 5809 When entering dates SSNs or phone numbers if you wish to override the format provided press the Ctrl and Y keys together The pre existing for p will be deleted and the new information will print exactly as entered Richard and Stephanie prefer phone calls on Stephanie s cell phone list this as their daytime phone number They want their home phone num ber to be listed as their even
282. st obtaining all required authorizations or licenses The Software including the documentation are provided subject to Licensor s standard commercial agreement products acquired for use within or for any United States federal agency are pro vided with LIMITED RIGHTS and RESTRICTED RIGHTS as defined in DFARS 252 227 7013 and FAR 52 227 19 IRC Section 7216 IRC Section 7216 and the associated regulations 7216 govern a tax return preparer s use and disclosure of tax return informa tion You acknowledge that as a user of the Software to provide tax preparation services you are a tax return preparer as such term is defined under 7216 You warrant that as a tax return preparer you will comply with 7216 Subject to certain exceptions under 7216 you are required among other things to obtain a taxpayer s written consent before you are permitted to i use a tax payer s tax return information to offer products or services other than tax prepa ration or ii disclose a taxpayer s tax return information to third parties To the extent uses or disclosures requiring consent under 7216 are facilitated by the Software Licensor has included the required consent forms for your use You shall obtain the taxpayer s signature on the consent form s when required and retain the executed consent form s with the taxpayer s file To the extent you elect to use or disclose a taxpayer s tax return information for purposes other than those fac
283. status from the drop down box Date and ID fields will auto fill To add addi tional comments click the Comments tab Typed comments will auto matically word wrap when printed To add additional statuses click the Custom Statuses button status Date ID Click to enter comments Click to enter custom statuses that Completed z 06 21 11 4547003 z can then be selected from the Status drop down box Custom Statuses OK Cancel Do not display preparation status automatically Help DA Enhancing Your Performance 95 Asset Tracker wr M Click the Assets button on the button bar to launch the Asset Tracker Assets The Asset Tracker is a powerful tool that allows you to track all of the tax payer s fixed assets It organizes all of the depreciable assets by form or schedule Fields with double arrows indicate you have the capability to enter the item through the Asset Tracker Easy access tabs allowing you to move quickly to the desired aspect of the asset Navigation 96 The Tree The tree displays all assets in the current return separated by form A Click on the plus sign in front of a form to see all of the assets for that form B Click on an asset in the tree to display the entry tabs C Click a form to see the Asset Tracker grid details on all assets for that form D Use Ctrl Page Up Ctrl Page Down to move from asset to asset through the tree E Right clicking on the
284. stom Letters x Invoice Settings Ctrl H gt Discounts Edit City Tax Info li Libraries Employer Library B RTN Library Colors B Control Data Reference the Enhancing Your Performance Control section B EF Settings This is where control information for Electronic Filing is entered Reference the Filing Returns Electronically section E Printer amp Delivery Settings Reference the Print Features Setting Print Defaults section B Distribution Sets Reference the Print Features Distribution Sets section 122 Preparers Enter information for multiple preparers in the same office on this screen Enter the corresponding preparer number on the General Information screen in the Preparer Number field Corresponding preparer information will then print in the Preparer section of the federal state return The Preparer Number field can be set as a default Common Forms This is used to change or select forms you would like listed while working in a client s return The list is located on the Forms pane under the Common tab You can view each user s Common form selections and modify your own This is helpful if you want to restrict users to certain forms Reference the Security section Custom Letters Reference the nstruction Letters Custom Letters section Invoice Settings Ctrl I Reference the nvoice section Discounts Enter discounts you want applied to your invoice pricing Ente
285. t The financial statements prepared on a tax basis include a Statement of Revenue and Expenses a Balance Sheet and a Statement of the Partner s Capital A Check the box to Prepare financial statements Frank and Susan also want the Two Year Comparison Worksheet This worksheet lists the ordinary income expenses and Schedule K amounts for the current and prior years and computes the differences between them B Check the box to Prepare two year comparison worksheet Step 7 1065 page 1 Ordinary Income and Expenses Let s start by entering the ordinary income and expenses on page 1 of Form 1065 for the AbleBaker Bookstore A In the Forms pane click on 1 1065 Pg 1 B Enter the following ordinary income in the appropriate field in the Input pane Gross receipts or sales line la 409 465 Returns and allowances line 1b 3 365 Interest income on accounts receivable line 7 559 We will create a detail statement on line 7 for the interest income of 559 Put the curser on the line 7 input field then click the Detail button on the button bar Enter the description as Interest income on accounts receivable Enter the amount as 559 C Click OK to return to the 1065 page 1 input screen When you move from this field the color of the field will change indicat T ing that it was detailed The total amount will also appear 1065 Sample Return 223 224 D Enter the following allowable deductions in
286. t select EF EF Options Complete the applicable information in the Electronic Filing Options screen On the E File Center Overview screen select 990 from the System dropdown box Reference www irs gov efile article 0 id 108211 00 html for 990 IRS instructions no related IRS publication number Software 990 Drain Times View the latest e file drain times in the E File Center From the Overview screen click Drain Times in the Helpful Links box IRS 990 E help Phone Number 1 866 255 0654 Ogden Form 8879 EO Retention You must use the Practitioner PIN program You will need to have the client sign Form 8879 EO before transmitting the return This must be retained by the ERO for 3 years 990 IRS E File Application To participate in the IRS 990 e file program you must file Form 8633 with the IRS Check box 990 under question 4 The easiest way to apply is through IRS e services at http www irs gov taxpros article 0 id 109646 00 html 1041 E File The 1041 e file process is similar to the 1040 1 On the General Information screen click the Electronic filing options link to access the e file screen 2 Complete the applicable information on the Electronic Filing Options screen 3 Refer to the 1040 e file section and complete the creating and sending an e file return process 4 On the E File Center Overview screen select 1041 from the System dropdown box 1041 Drain Times View the latest e file drain times i
287. t th l Backnoe Loader Expense of Disp Basis Adj etes ken nter the gross sales Ems Deprec Alowed toverden l Cast or Other Basis 45000 p ri ce Bobcat Uliity Trai Aasted Basis g Expense of Disposition 0 ertaser Printer Gain Loss 190900 Depreciation Allowed 45000 Estimating software Adjusted Basis o F Enter any other Hydraulic Excavator Goin Loss BEC Tablet PC information for the Tool Trailer Adal Depr After 1975 Track Loader Appl After 1975 100 sp ecific type of Traile Recap Amt After 1975 oo oe Hfiited Tractor i disposition Sch E 1 Gain Depr After 75 180900 SchE 2 Addl Depr 1959 1975 G Select the part Recap Amt 69 75 a Section 281 Amount of Form 4797 on a which the sale will See1231 Gain 190900 be reported H If land is to be reported separately enter the sales price of the land any expenses associated with the sale of the land and the part of Form 4797 on which the sale of the land will be reported If there are assets that are 1250 and 1245 property included in the same group apply the asset to the applicable group with the use of the 1250 and 1245 tabs Select the correct part in the carry to Form 4797 drop down The Asset Tracker will calculate required depreciation recapture for 1245 1250 and other assets All Disposition forms are generated within the 1 Asset Tracker No additional entries are necessary in the return Special Depreciation Al
288. t to the total tax due This will not appear in the column as the return input may not be complete Only enter an amount if the tax payer wants only a portion of the tax due to be withdrawn 21 Use the Percent column to have the software calculate the specific dol lar amount for each account Use either the Amount column or Percent column but not both in the same return 22 If the client participates in EFW the withdrawal date will default to April 15th To override the withdrawal date enter the desired date If the return is e filed after April 15th the program will default to the date the return is entered The IRS will debit the account on the first business day following acceptance Default dates will not appear on the screen 23 Click Close 24 If the client participates in EFW a daytime phone number is required Verify the taxpayer s daytime phone number is entered on the General Information screen gov for details Do not complete the Direct Deposit and Electronic Funds gt Taxpayers may pay their federal taxes using a credit card Visit www irs Withdrawal grid There is a finance charge associated with this service A 1040 V will print in case the taxpayer decides to pay by check State credit card options vary Check with the individual states for details EEE Filing Returns Electronically 147 148 I 25 The IRS has mandated the use of the PIN Program for all tax returns Use of the PIN will generate F
289. that the state returns are ready to e file and check the corresponding boxes If applicable untag returns that are not ready to e file Click OK Create E File s C Alabama Z Federal amp NY Piggyback Efile Type Filing Returns Electronically 149 Transmit Directly to Filing Center To transmit an e file return without going to the EF Center click Settings and select EF Settings Under the EF Switches tab check Allow for Transmitting Directly to the Filing Center From Create E File After reviewing a return click the Create E File button The following screen will appear STRAIGHT MARK amp JUNE EFType MeF Amount Secondary Amount Bank Fee No 10306 Bonu 0 M n Sends return to Filing Center Transmit Directly to Filing Center H aH aosing this option moves the efile directly to the Filing Center ready for bypassi ng EFi le Center ission to the IRS and or States Moves return to E File Center 3 log in to E File Center to reports rather than individual reports transmit return to Filing Center Transmit From Send Clients Further actionis required to transmit this return Login to the Efile Center an to Send Clients to transmit this return Transmit From Send Clients Click Transmit Directly to Filing Center to move the return to the Filing Center ready for transmission to the IRS and or States This eliminates the need of logging into the E File Center and
290. the Add to Common option and the form will be added to the Common tab list To remove a form select the Common tab Right click on the desired form Select the Remove from Common option and the form will be removed from the Common tab list You can also customize the Common tab by clicking the Settings menu and selecting Common Forms The forms defaulted by the program will be tagged Select the System and User and tag the forms you want listed under the Common tab Click OK Click Restore Defaults to restore the Common Forms to the defaults distributed with the program Common Forms Users X Common Forms 1040 A548378 A548378 M General Info General Information lal ES Dependents Dependent Information 2 M Instr Ltr Instruction Letters E C Instr Ltr St Instruction Letters Standard Invoice Invoice Options E O Invoice Std Invoice Options Standard cR CO Options Prep Options Advocacy Taxpayer Advocacy Audits M E File Tax Declaration for Electronic Filing 3 M 1040 Pg 1 U S Individual Income Tax Retum Pg 1 a M 1040 Pg 2 U S Individual Income Tax Return Pg 2 M Wage W2 Wage and Tax Statement O Foreign W2 Foreign Employer Compensation TE App ITIN Application for ITIN E 8 C Gambling W2 Gambling Winnings and Tax Statement i e C Donated Car Contribution of Motor Vehicle Boats anc C 1099 Links Forms 1099 1098 and 5498 C Foreclosure Acquisition or Aban
291. the appropriate input fields Salaries and wages line9 29 350 Guaranteed payments to partners line 10 25 000 Frank received 20 000 and Susan received 5 000 Repairs and maintenance line 11 1 125 Bad debts line 12 0 000 4 250 Real Property line 13 20 000 State Income Taxes line 14 LL 3 295 Interest line 15 0 0 0 0 0008 1 451 Other Deductions line 20 Advertising 2 0 0 0 00 eee 4 000 Other business deductions 4 003 We will create a detail statement for the other business deductions of 4 003 Put the curser on the line 20 input field for Other business deductions then click the Detail button Enter the descriptions as Labeling Costs and Miscellaneous Deductions on separate lines Enter the amounts as 3 000 and 1 003 respectively Click OK to return to the 1065 page 1 input screen On the button bar click the Peek button to view the output form Check to make sure the Total Other Deductions of 8 003 is printing on line 20 Step 8 Depreciation The partnership has bookshelves that they are currently depreciating The bookshelves were purchased in one transaction Therefore they will be set up as one asset We will use the Asset Tracker to help track the depreciation A Click the Assets button located on the button bar to open the Asset Tracker B Click the New button to add the asset 1 Make s
292. the client B To move from field to field use your mouse or press the Enter Tab or arrow keys Press the Shift and Tab keys together to move back a field C The Client Number is optional Because this is the first client in this 36 oe d folder assign it number 1 D Enter the Client ID as JONE1234 We used the first four letters of the client s last name and the last four digits of the SSN The Client ID field is an optional entry It may be left blank or any combi nation of letters and or numbers may be used If the spouse s last name is the same as the taxpayer s an entry in the Spouse Last Name field is not necessary Enter Richard Jones as the taxpayer s first and last names F Enter Richard s social security number as 525 01 1234 The dashes are already provided and do not need to be entered G Enter Richard s birth date as 01 01 1982 H Click on the Spouse First Name input field Enter Stephanie as the spouse 5 first name Enter Stephanie s social security number as 529 01 6543 J Enter Stephanie s birth date as 02 02 1982 K Enter their address as 1350 South Main Street L Enter their ZIP Code as 84037 M Select Kaysville The city and state will be filled in based on the ZIP Code entered If there is more than one city assigned to a ZIP Code you will be prompted to select the proper city from a list To select the proper city click on the city with the mouse or use the arrow keys and pre
293. the drop down box click the Estimated Tax Calculation Adjustments link This will open the 20 2 Estimated Tax Calculations Adjustments Worksheet input screen where we can make any necessary changes for the 2012 estimated tax C Stephanie anticipates earning about 15 000 more in 2013 than in 2012 Enter 15 000 in the Spouse field on ine 1 of the Adjustments section of the input screen D Richard expects his self employment income to increase by 25 000 in 2012 Enter 25 000 in the Taxpayer field on line 3 of the Adjustments sec tion of the input screen This adjustment will increase both income tax and self employment tax MEM l1 6 5 n5 E Ec 1040 Sample Return 5 52 E Stephanie thinks her withholding will increase by 1 000 because of the increase in wages Enter 1 000 on ine 19 of the Adjustments section of the input screen Click the green arrow to return to the 1040 Federal Estimated Tax input screen F Inthe 2012 Vouchers section click the Rounding drop down box and select 3 Round voucher amount up to the next 100 If you click Peek the worksheet should show appropriately rounded amounts in the Voucher Amount column of the Voucher Amounts section of the worksheet Step 20 Finishing the General Information Screen Now let s go back to some of the other information found on the General Information input screen Click the GI General Info form in the Forms pane Type of R
294. the multiple number if necessary p y B FOR 1040 Asset E Enter the cost of the asset RETURNS ONLY EC S l h d s Real F Enter any current section 179 b HM ed Mupi T Lookup expense Ifthe asset was not placed payer spouse indica State UT ns T Taxpayer v d dani P tor will carry from ZEN In service in the current year the the indicated form ave New Asset screen will prompt you or will default to the er for prior section 179 expense resident state and sm G If the asset was not placed in service joint if MFJ or tax MCN MOSCA TE in the current year enter any prior if MF Type 6000 to 14000 GVW SUV FAM payer if not MFJ ES depreciation C Enter the asset s EN H Select a type description bas 754 Optimal C Actual C SMR D Enter the date the Method usvR asset was placed in Force Options I E service Type is an optional entry You can leave the type blank however the types ote g have built in default depreciation methods and periods If a period cannot be determined from the type or method selected you will be prompted to enter the appropriate period See the next page for a table of types and their default depreciation methods periods a NI Enhancing Your Performance 99 If the type is a vehicle enter the mileage and if applicable select the auto expense method Optimal for first year Actual to force actual expenses or SMR to force Standard Mileage Rate returns must use actual ex
295. the software ReadMe This option opens a document containing installation and initial configuration instructions About This option lists pertinent license agreement information appli cable to your program States and Cities We provide software for all 1040 states with a state tax as well as the Florida intangible tax Business software includes all 1041 1065 1120 and 1120S states that have an applicable tax The software also supports select 1040 cit ies including Michigan New York Ohio and Pennsylvania cities Movement through the federal and state returns is similar State and City Access To access state and city input screens while in the federal portion of the client s return click the State button The state screen defaults to the two letter state code entered on the federal General Information screen in the State f address field To change or add other states click the States button above the Forms pane The States to Process and Pup Codes screen will appear Enter the two letter state code or select the state from the drop down box For states with cities that we support a Cities button will appear above the Forms pane Click the Cities button A Cities to Process screen will appear Tag the desired city and click OK Eile Edit View di m Installations Help Click to prepare a city return e amp x amp t Bae aleve 9 GJH c o Mg
296. this Section 1 2 License Restrictions You may not directly or indirectly 1 re distribute sell rent loan resell or otherwise transfer the Software or any rights in or to the Software to any other person or entity 2 use the Software in any manner other than its intended manner including making the Software available on an applica tion service provider 3 duplicate the Software by any means including elec tronically except for a backup copy described in Section 1 above 4 remove any proprietary notice labels or marks on or in Software 5 derive or attempt to derive the source code for the Software or 6 disable or circumvent any access control or related device process or procedure established with respect to the Software 3 Intellectual Property Rights The Software is protected by United States copyright law and international treaty provisions Through your use of the Software you acquire no ownership interest in the Software or any derivative work or component of the Software Unless and to the extent that applicable laws may require otherwise you may not decompile disassemble modify or reverse engineer the Software or seek to derive the source code from any execut able object code provided to you or modify translate or otherwise create deriv ative works based on the Software or any part thereof 4 Term The Agreement is effective until terminated by Licensor This Agreement will terminate if you fail to com
297. tions Load Soft Fonts amp Revisions Release Dates Ls 1040 Tutorial L5 1041 Tutorial L5 1065 Tutorial Test Communications 7 ReadMe Q About Menu Summary 247 Notes Notes 248 Keyboard Shortcuts sur ra Moves to previous field Input Mode Notepad em A Audits Input Mode Get PUP Code Calculator Paste en B Links Back to Parent Form Input Mode Calculator Len c Universal Copy Input Mode Save T ll r Input Mode Set amp Clear Jel Defaults Calculator Print Tape Input Mode 2 Year Comparison en Input Mode Invoice Settings Universal Paste em x Input Mode Status Drawer Universal Cut Viewing File Make fields accessible to Alpha Characters Help Print Save Default Sets Federal Forms Peek State Forms Client Selection Asset Tracker Program Help Input Mode Detail Statement Review Mode Prints Tagged Client Status Input Mode Review Return Review Mode Prints Single Form Next State Print Advanced Form Delivery Reset Desk Erase Delete eu rio Reset Forms In Use
298. tions 29 Basic colors E T MEIN miii mmm Scroll for different m mmumu shades of a color ie NE NN UN E E NN NND NN NNI RGB and HSL boxes NENNEN Click to add a Displays the custom colors Custom colors custom color to the that have been saved gt Frrmmmau menu Hue 60 d 0 Displays the selected color Sat f0 Green 0 Define Custom Colors ColorlSolid Lum 5 Blue o Cancel Add to Custom Colors The default colors can be restored at any time Click the Settings menu and select Colors Then click the Defaults button Helpful Hints Moving through fields Move from field to field using any of the following methods mouse Enter Tab or arrow keys Press the Shift and Tab keys together to move back a field Tag or Untag File Edit View Utilities Help a gt 4 rM Ww V 1 X a m e EF Ctr New Open STaR Review Copy Delete Move EFStatus PUPs Download Upload Proforma Data Path Name My Tax Files v Folder Samples Find By TP Last Name Click to tag or untag all items Tag or untag one item at a time ClientID TPLastName TP FirstName 8P FirstName I Winter Cris Britt T TP Split Winter Cris Britt Winter Britt Cris SAMPLE 04 WILLIAMSON SAMPLE 03 Brady Edit Cut Copy and Paste can be accessed by right clicking in any field or through the Edit menu These are standard Windows functions T
299. titution You can view the Two Year Comparison from any input screen by pressing Ctrl T 108 Barcode Reader Capture W2 and K1 data by scanning forms with a 2 Dimensional 2 D barcode using a hand held 2 D barcode scanner Form data automatically imports to the tax software streamlining your data entry process Refer to helps in the program for details Signature Pad Move closer towards the goal of a paperless office by having taxpayers sign their return on a signature pad instead of the paper signature forms The signature is applied to the tax return for archival purposes in ArkWorks or other document management systems The signature can be printed on the return if you need to provide a paper copy of the return for any reason Easily apply the taxpayer s spouse s or tax preparer s signature to forms such as the 8879 or 8867 EIC Due Diligence Worksheets Refer to helps in the program for details Labels Your client correspondence can look professional by using a label on your envelopes This can be done by clicking the Mgmt button and selecting Labels Select the Type of label from the drop down box Make other selec tions as necessary Print Client Labels Clients Tag the clients for a LastName FistName SSN whom you would like to tt Brady Mica d print labels Select the type of label Select the number of labels per client Adjust where the print ing should start when
300. tom Sort Choose which column to sort then select the properties by which you would like to sort e Install Sample Returns Installs several sample returns to the Samples folder for you to reference e Lock Unlock Return Lock and unlock specific returns so no change can be made EH Help e Program Helps Ctrl F1 Displays program helps General Information Screen a Clients The General Information screen is where you will start most of your data entry It contains personal information about the client such as name SSN marital status etc We have provided links to other forms as well as input fields for some of the more common entries Click Clients on the button bar Tag the client you want to open and click Open There are four General Information screen options B Advanced For complex returns B Lite For the majority of your returns B EZ For clients who qualify for Form 1040EZ B Espa ol For Spanish speaking clients and preparers Within the General Information screen you can link to a form instead of using the Forms pane by clicking on the highlighted underlined form name The program will link to the form selected Make any applicable form entries When you are finished click the green arrow button on the input form control bar to return to the General Information screen 200000 5 0 0 000 CC Enhancing Your Performance 65 When entering new clients the Ge
301. tted E File amp Financial Product reports are available in the E File Center Reference the Filing Returns Electronically and Financial Products sections CPA and Other Professional Privacy Letters are available while enter gt ing client data from the Instruction Letter input screen Reference the Instruction Letter Custom Letters section Status Drawer Select the system from the drop down box The Status Drawer is used to track view and print status information Status Click the File menu and select Status Drawer From the drop down box select the desired system From the Preparation Status tree highlight the desired status The screen will list clients that fall under the status selected You can preview or print the selected status report Status Drawer 1040 Individual Client No FirstName SSN Status _ Data Path Michael 348 34 8222 Completed Test In Progress Incomplete Under Review Extended Waiting for Informatic Click the box to print the Completed Advanced Report with expanded status information Walked Ie E 1 Cient Advanced Repot J Samples Preview Print Close Help To change or add a client status from the Client Selection screen right click on the client s name and select Status Dialog To change or add a client status or comment while in the client s return click the Status but ton on the button bar While on the Status tab select the desired
302. turn 2 3 4 Click the Clients button Tag the client s you wish to upload and click Upload Move radio button to Support Team and click Upload If you wish to attach a note to the return click Yes Type the note and click Send To upload the return without a note click No A security statement will appear informing you that during the upload process certain personal information will be altered to ensure the pri vacy and security of the information We highly recommend that you do not click the Opt Out button unless directed by a Technical Support agent Clicking the Opt Out button allows the client file to be uploaded without altering or masking the client s information Click Close or the Opt Out button The file will be uploaded to support 6 Ascreen will appear asking you to contact support to alert them that a file was uploaded You can do this by phone or e mail Click OK Upload Clients Click to upload client s to support orks Support Feam Select Support C Account Number Team Upload Filename Upload client s to your own account folder You can upload client s to your own account folder The folder will reside on our Server for you to retrieve later This is a great feature for those who work at home and at the office You can upload files from the office to the server and retrieve the files from your home or vice versa Upload client s to an account bin 1 Click the Clients button
303. tware Changes System Updates Update Settings Tell us how you would like to update your tax software on all other computers on your network Download Options Software updates will be downloaded in the background so that they are ready to be installed at your convenience Which location can other computers check for available tax software updates to download Internet only Shared network location only Internet and shared network location Check for and download updates every Eight Hours e NOTE For the Updater to work properly any hardware or software firewall will need to be opened to allow downloads Update Options Once tax software updates have been downloaded each computer in a network environment will need to have the updates applied How should this computer apply tax software updates Apply tax software updates automatically on startup Apply tax software updates manually Prompt to install updates Eon software startup Elon software shutdown Software update reminder frequency Eight Hours SSC Back Cra Cancel Help Installation 19 Step 4 The final screen is a reminder to verify information carried for ward as part of the system updates or you can enter new informa tion You can access most of the items from the Settings menu once the initial configuration wizard is complete Click Finish to complete the initial configuraiton wizard process m nitial Configurati
304. ugh the Internet will automatically be pasted into the return You can process each return as many times as necessary with the same PUP code Click the Help menu and select Pup History A note may appear alerting you that you will be accessing a web page with the PUP history Access may require you to login Click OK The Internet will launch After a successful transmission the PUP History report will appear The report can be viewed or printed There are numerous ways to obtain help while using the software The Help menu contains many helpful Internet options Reference the Help Menu sec tion of this manual for more details 140 Alerts LN Alerts gt Double click to view the alert Tag alerts by checking box Alerts will be assigned a number according to the level of Severity E File Cen Alerts allows our personnel to send messages throughout the year to all customers or specific groups of customers These messages alert you of pro gram upgrades helpful hints e file IRS drain information etc To view Alerts you must have a valid Internet connection 1 Click the Alerts button 2 New alerts will be listed in bold text 3 Double click on the alert title in the Subject column to view the alert in detail You can tag an alert and mark it as viewed or archive it Marking an alert as viewed will stop it from opening when you initially open the software Archiving an alert will move it into the archives You
305. uired in your Firm Data Account Number Charge Number Serial Number and Street Address They must be entered exactly as shown on your License Notice These fields should already contain data entered during the installation pro cess Enter other applicable information in the non key fields fields not highlighted in blue T The Firm Telephone field will accept alpha characters e g 1 800 TAX 2 PREP E Access Displays the systems and associated states for which you have complete access B Paths This tab indicates the drives to be used for saving backing up installing and archiving data All options can be altered except the Install Path To change this path you must uninstall and reinstall the program To change the User ID set during the installation reenter it here The keep for box next to the Auto Backup Path field indicates how many days the auto backup will store your client data B Switches This tab contains program related functions that affect sev eral areas of the program Tag the items you want to activate This will default the selected function throughout all systems ELL Enhancing Your Performance 57 Startup This tab allows you to select your preference when opening the program You have the option of opening the program to the Client Selection screen or opening the program in idle mode You can also select to have the program check for alerts upon first opening the program Suppress
306. up utilities Backup To backup system and client files click the File menu and select BackUp Click the browse button and select the Backup To location and select the path from the Client Files From Data Path Name dropdown box Tag the files you would like to include in your backup Click OK to begin the backup When the backup is complete you can view and print the log Sek ix eccl i 81 2011 3 17 03 AM Last Backup Se Created Verity the data path where the client files reside m El a a El a Ej El a Every time you exit the program the Backup screen will appear To suppress this check the Do not prompt on exit box To turn this feature back on click the Control button and click the Suppress tab Uncheck the Suppress prompt for backup box EL Enhancing Your Performance 111 112 Tag items clients yo want to restore Restore To restore files you backed up using the program Backup feature click the File menu and select Restore Browse and select the Path to Backup Set Select the date of the Backup Set you would like to restore from the drop down box Click Next Select the type of file you would like to restore and click Next The program will then build and display a list of files or types of files Tag the files you would like to restore and click Next After the files have been restored you will receive the message To restore
307. ure the Form is set to 1065 2 Enter the Description as Shelves 3 The shelves were purchased on 05 01 2010 4 The Type is Furniture and Fixtures 5 The Prior Depreciation is 480 6 The Cost was 3 356 7 The Method should default to MACRS 7 Year M7YR 8 Click OK to continue You are now on the General tab of the Asset Tracker Select the Type by clicking W in the Type field or start typing Furniture lt gt to use the auto fill feature This is an optional entry 9 The Current Depreciation should be 822 10 Enter 480 as the Prior Depreciation in the AMT column C Click Close to exit the Asset Tracker and return to the 1065 page 1 input screen Step 9 1125A Cost of Goods Sold A From the Forms Selection pane click on Form 1125 A Cost of Good Sold 1l Enter the following amounts Inventory at beginning of year line 1 18 125 Purchases line2 0 00005 268 741 Inventory at end of year line 7 19 225 2 Line 8 Cost of goods sold will automatically calculate and should equal 267 641 3 The method used for valuing inventory for the partnership is Cost which is the default method in the program Therefore no entry is necessary 4 The remaining questions regarding inventory are answered No by default for the partnership You do not need to make any entry Ce 1065 Sample Return 225 226 B Again from the forms seleciton pane select the Form 1065 page 1 input screen C C
308. urity Page 3 Printer Software Changes System Updates Update Settings Tell us how you would like to udpate your tax software on this computer Download Options Software updates will be downloaded in the background so that they are ready to be installed at your convenience Which location can this computer check for available tax software udpates to download Internet only Shared network location only Internet and shared network location Check for and download updates every Eight Hours w NOTE For the Updater to work properly any hardware or software firewall will need to be opened to allow downloads Update Options Once tax software updates have been downloaded each computer in a network environment will need to have the updates applied How should this computer apply tax software updates Apply tax software updates automatically on startup Apply tax software updates manually Prompt to install updates Ton software startup on software shutdown Software update reminder frequency eight Hours SSC oe Cre Cor tee Step 3 Indicate how all other computers will download updates Again we recommend that Internet and shared network location be set for each computer You can also specify how the other computers will apply the updates Click Next Start Page Serial Number Firm Data Page 1 Firm Data Page 2 Security Security Page 2 Security Page 3 Printer Sof
309. us Report Allows printing of clients by status i e Updated In Progress etc Group Status Allows you to select and group clients by specific status Address Phone List Gives an address and phone listing Client Summary Lists tax return information including AGI tax due refund and invoice amounts Referral Report Lists client s name SSN and referral source Commission Report Allows you to figure the commission payment per invoice amount for each preparer Invoice Report Lists invoice information such as total invoice amounts paid and outstanding invoice amounts Paper Returns Lists clients who paper filed non e filers Client Logs Lists clients you started working on and notes the specific day Range selection cannot be viewed it can only be print ed Detail Report Prints return information for selected clients Enhancing Your Performance 93 94 e Detail Family Report Lists taxpayer spouse and dependent information for all clients e Comment Report Lists clients and comments entered in the Status menu e State Totals Lists the total number of returns processed categorized by state and system Birthday Listing Lists all clients and spouses by birthday B Marked for E File Not Transmitted Creates a report noting clients that have been marked for electronic filing and reviewed but no e file was created and the client has not been transmi
310. utton bar contains icons that will link to the most frequently used func tions The icons EF Ctr Mgmt New STaR and Clients link to screens where most of the tax preparation will take place The Assets Fed State and Detail icons link to input forms used to enter client information Peek toggles to a full view of the Output pane Review is used to process the return Audits will let you view audit messages for the client you are working on The PUPs and Upload icons link to program features through the Internet Status is used for in house tracking of a client Close exits the client s return and returns you to idle mode Ark links to a document storage software called ArkWorks 22 Control is a vital link for entering license information and setting unique prefer ences in the program Alerts links to a website allowing you to view messages regarding form and program changes and bank and IRS messages Update allows you to receive program updates through the Internet o ra mni x 6 H 0 EF Cir Mgmt New STaR Clients Assets Fed State Detail Peek Review Audits PUPs Upload Status Close Ark Control Alerts Update 12 34 567 8 9 101112 131415 16 1718 19 20 1 E File amp Financial Products functions and reports 11 Process and review return 2 Client Management utilities 12 Review Audits for client 3 Create a new client file 13 View or request PUP code through Internet 4 Simple Tax Return Wizard 14 Upload open
311. ve multiple lines of entry for the same item have simple grids Calculations from these entries do not take place until you review the return To move through a simple grid press Enter Pressing Tab will move the cursor off the grid and to the next line of input You can also import Excel files into any simple grid Make sure the spreadsheet columns correspond to the simple grid Other Medical Expenses ns Amount State Dr Ryan E 2500 CA Dr Bridget T 157 cal Detail Statements To detail an item while in a field double click or press F6 A grid will appear Enter descriptions and amounts The Amount column will total Click OK to exit the grid The detail total will be pasted to the field When you move from the field the color of the field will change letting you know the field was detailed General Instructions 3 Tag form and click Delete to delete form 32 Sort and Find The client s data is displayed in columns on the Client Selection screen Sort any column by clicking the column header The current sort column header will be noted with a A To sort at multiple levels click the Utilities menu and select Custom Sort Make selec tions The Find feature in Client Selection and Management coincides with the sort selection List Business Codes Select this option to view the business code list Business codes are used on Schedule C and Schedule F To access this function click the Workbench menu a
312. very 55 129 131 133 Batch Process 64 91 130 208 Blank Forms 206 Customizing Sets 127 Distribution Sets 122 125 126 132 Duplex 84 125 Defaults 122 128 129 132 Form Filler 125 133 134 Input Screen 122 Labels 129 Return 125 128 130 131 Sets 125 128 Soft Fonts 2 128 Printer amp Delivery 2 122 125 129 Printers 2 Prior Year Value 154 217 Privacy Letter 94 Proforma 59 60 62 64 90 Publications 49 PUP Codes 64 139 202 206 History 202 Multiple 206 Quick EF Lookup Tool 61 62 122 Rebuild Clients 64 Reciprocal State 207 Recycle Bin 62 63 Refresh 64 157 Refund Calculator 239 Refund Into Multiple Accounts 147 Rejects 144 168 Index 243 Release Dates 151 202 Removable Media 36 Remove Audits 34 Remove Captions 23 Remove Default 121 Remove Delete Form 32 Remove Delete Status 89 Rename Multiples 33 Renumber Multiples 32 Reports 93 108 163 171 174 Acknowledgment 166 Address Phone List 93 Asset 160 Birthday 94 Client Log 93 Client Summary 93 Comment 94 Commission 93 Custom 94 Depreciation 96 Detail 93 Detail Family 94 E File 177 E mailing 167 Financial 23 Invoice 93 Management 93 208 Production Summary 93 PUP History 140 202 Referral 93 State Totals 94 Status 93 95 Transmission 150 166 170 Two Year Comparison 108 Required Entry 28 68 71 78 Reset 24 88 Restore 112 Assets 97 Captions 23 Clients 112 Colors 29 30 Defaults 26 Files 112 Workspace 24 Retire
313. wo ways to obtain PUP codes Retrieve a PUP code while in the return 1 Click the Pups button or click the Utilities menu and select States amp Pups 2 The States to Process and Pup Codes screen will appear noting the resi dent state you entered on the federal General Information screen To select additional states type the two letter state abbreviation or select the state from the drop down box nput states in the order they will process 3 Click Get Pup s The Internet request will take place Click Close The PUP code will paste to the Pup Code field on the screen Click Close LLL Internet Service Provider ISP 139 gt Click Advanced to access the Move Up and Move Down po of the screen Click to retreive a history of your PUP code transactions pil Click to retrieve a PUP code The resident state must be entered on the federal General Information screen in the address area The resident state will always process last to ensure that the credits carry properly 3 States to Process and PUP Codes x State EF File Type State PUP Code Suppress ullis lm Resident rtion Federal Pup ACCESS Advanced gt gt gt PUP History 1 2 3 Help PUP History Get PUP s Remove Close esc Help RE PUP code s must be obtained separately for each system PUP code s received thro
314. x F In the Save section select Preparer File Set in the Set drop down box Click the browse button to the right of the Path field to select a destination for the saved return The Filename field will be automati cally populated but can be changed if desired We will leave the default name for this return G In the Email section select Client Copy Set from the Set drop down box The program is automatically set to send the information to the email address listed on the General Information screen If you would like to send a carbon copy to another email address such as your firm or preparer email utilize the CC field CC Eee 1041 Sample Return 219 220 H Now that our delivery choices are made click Start Job at the bottom of the screen A status window will appear and the delivery methods will proceed For the email option your default email program will open and a new email message will be created with the 7o address being the address you entered on the General Information screen The email will have a default message with the client copy of the return attached as a pdf document l In your email program click Send J Once that is done the focus should again return to the program and the Advanced Form Delivery screen Click Close at the bottom of the win dow to return to Review mode will need Adobe Acrobat Reader available from www adobe com to view the file The recipient will also need a password to open the file
315. x returns must file individual income tax returns using electronic means or software that produces a 2D barcode A waiver can be requested in writing to the Tax Commissioner clearly demonstrating the nature of the undue hardship to comply with the mandate WI Preparers who prepare 100 or more WI Forms 1 1A and WI Z and Schedule H are required to e file individual income tax returns Exception WI returns on which the taxpayers write no e file before their signatures to indicate they do not want to e file the return WV Preparers who prepare more than 100 individual returns in any calen dar year are required to e file Financial Products Click to view a comparison of all financial product offerings Click to enroll with a financial partner We have partnered with several leading financial institutions to offer our customers a variety of financial product options to choose from Financial Products allow tax preparers to earn fee based revenue while providing the following benefits E Can give taxpayers quicker access to their funds Bi No out of pocket expenses All fees can be deducted from the refund B6 Tax preparation fees are deposited directly into the tax preparers account E Multiple disbursement options Checks printed in the tax preparer s office direct deposit or pre paid debit cards E Serves the unbanked client For a complete listing of all Financial Partners access the 2011 E File Center
316. xpenses in Part V Other Expenses Telephone scan psu pepe ys CERE 821 SUDSCTIPTIONS s scs a X opea d OUR Ee x 322 Enter Subscriptions in the Other Expenses grid Entries made in the Other Expenses simple grid are registered to the Schedule C library To edit this library click the Settings menu and select Libraries Simple grids allow for unlimited entries Overflow statements will be prepared for any simple grid if needed Step 12 Detail Information A Occasionally you may want to provide a detail statement for an item In this case we will detail three tax items on Richard s Schedule C B Click the input field for ine 23 Taxes and licenses C Press F6 to open Detail Statement D Enter the three tax items as follows Slate Sales dax cs idee da dedere RU e 3 250 Miscellaneous taxes ccce ee 420 Business license v vs es Edu 175 E Click OK to return to the Schedule C input screen When you move from this field the color of the field will change which T lets you know that it was detailed The total amount will also appear 777777D s viEE 1040 Sample Return 45 Step 13 Depreciation Richard has two assets that he depreciates We will use the Asset Tracker to help track depreciation A Click the Assets button on the button bar or the Depreciation link on Schedule C line 13 to open the Asset Tracker Because no assets have been

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