e-fx 2012.02030 Updates

e-fx 2012.02030 Updates 2012.02030 e-fx 2012.02030 Updates 1 Technology Updates 2 Electronic Filing 2 Individual (1040) Product Updates 3 Partnership (1065) Product Updates 4 Corporation (1120) Product Updates 5 S Corporation (1120S) Product Updates 6 Estate and Gift (706/709) Product Updates 7 Upcoming Releases 8 Highlights for Release 2012.01000 9 Status of IRS Release of 2012 Government Forms and IRS Approach to Pending Legislation 9 ProSystem fx Response to IRS Approach 9 Windows 8 Compatibility 9 Tax Notebook Toolkit 10 Electronic Filing Status System 10 Tax Preparation 11 Office Manager 12 Network Software and Network Clients 13 Tax Product Enhancements 2012.01000 - Worksheet View 14 Individual (1040) Product Enhancements - Worksheet View 14 Partnership (1065) Product Enhancements - Worksheet View 31 Corporation (1120) Product Enhancements - Worksheet View 35 S Corporation (1120S) Product Enhancements - Worksheet View 44 Fiduciary (1041) Product Enhancements - Worksheet View 49 Exempt (990) Product Enhancements - Worksheet View 50 Estate and Gift (706/709) Product Enhancements - Worksheet View 51 Employee Benefit Plan (5500) Product Enhancements - Worksheet View 52 Tax Product Enhancements 2012.01000 - Interview View 53 Individual (1040) Product Enhancements - Interview View 53 Partnership (1065) Product Enhancements - Interview View 67 Corporation (1120) Product Enhancements - Interview View 71 S Corporation (1120S) Product Enhancements - Interview View 80 Fiduciary (1041) Product Enhancements - Interview View 85 Exempt (990) Product Enhancements - Interview View 86 Estate and Gift (706/709) Product Enhancements - Interview View 87 Employee Benefit Plan (5500) Product Enhancements - Interview View 88 Contents 1

Technology Updates Return to Table of Contents. Electronic Filing Individual Corporation S Corporation Partnership Fiduciary Tax Exempt 1040 returns. Qualified returns currently can be uploaded and released. These returns will be held by ProSystem fx until the IRS opens electronic filing on Wednesday, January 30, 2013. ProSystem fx software calculation changes related to the American Taxpayer Relief Act of 2012 are available, but returns containing forms on the IRS delay list continue to be disqualified until the IRS provides their revisions to the electronic filing data. The list can be reviewed at http://www.irs.gov/uac/newsroom/list-of-irs-forms-that-1040-filers-canbegin-filing-in-late-february-or-into-march-2013. Business returns. Until the IRS provides a specific date they will open for business electronic filing, none of the returns, including the state returns, can be uploaded. 1041 returns. The IRS announced they will open for 1041 electronic filing on Monday, January 28, 2013. These returns will be available for submission with this release. In addition to those previously announced, the following federal, state and city products are approved and available for electronic filing submission as noted above: Virginia and Vermont Alabama, California, Delaware, Mississippi, Virginia Alabama, Arkansas Magnetic Media, Delaware, Mississippi Arkansas Magnetic Media, Mississippi, New Jersey, Rhode Island, Tennessee Federal, Federal Extension, New York 204LL, Wisconsin Federal Forms 926, 970, 2220, 8275/8275R, 990 Schedules C, D, G, H, I, J, K, L and M, and California Technology Updates 2

Individual (1040) Product Updates Return to Table of Contents. Federal Schedule 8812. The menu now reflects the name of the form. Schedule F. The prior year numbers appearing on Farm / 4835 > Expenses align with the proper descriptions. Illinois Electronic Filing Schedule G. When a negative amount is present on the Schedule G a disqualifying diagnostic will issue to prevent electronic filing. Michigan Electronic Filing Disqualifying diagnostic 45753 issues when a contract number on Form MI-1040CR-5 or Schedule CR-5 has not been entered or the length exceeds 6 characters. New York Electronic Filing Form IT-204-LL diagnostic 39479 now issues with the direct debit information for all IT-204-LL entities. Technology Updates 3

Partnership (1065) Product Updates Return to Table of Contents. Federal Arizona Kentucky Schedule B-1. Worksheet Federal General > Basic Data > Ownership By Other Entities in Partnership > Name of Entity now allows entry of data. Worksheet Federal > Special Allocations > new descriptive allocations individually listed no longer need to enter the Special Allocation code in Special Allocations > Special Allocations > Special Allocation Detail > Look-up Code. The first line of the entity name no longer appears twice in the heading of Form AZ 165, Page 2. Form 765 transmittal letters, filing instructions, and cover sheet now use data from Schedule RR-E in SaaS. Kentucky Cities New York Entries made on Worksheet Federal > Common State > State/City Common Data for other states is no longer included on Lexington Form 228. The amounts for extension and estimate payments now print on the Credits statement behind Form 228S. Form MTA-405E, Exemption from Withholding for the Metropolitan Commuter Transportation Mobility (MCTM) Tax, now includes the telephone number of the partner claiming exemption. New York - New York City North Carolina North Dakota Pennsylvania Filing Instructions now includes credits from Form NYC-114.7 in the Less: payments and credits section. Special allocation entries for allocation of the adjustment for 1st-year depreciation added back in 2009 no longer affect the allocation calculation of the adjustment for 1st-year depreciation added back in 2010 or 2011. Schedule KP, Column 4 now reflects the partner's ownership percentage, per the state instructions. Current year calculated depreciation now displays on Pennsylvania Form REV-799 when 2011 totals are present. Technology Updates 4

Corporation (1120) Product Updates Return to Table of Contents. Federal Print positions for the two boxes on top of the form has been updated. Florida Kansas F-1120 Page 3, Schedule II, Line 9 and 10 now include the 2011 amounts entered. Form K 120 line 17 will subtract out on line 18 even when method 1 and method 2 are selected. Technology Updates 5

S Corporation (1120S) Product Updates Return to Table of Contents. Federal Schedule K-1 export is updated to carry amounts for code 12R - Employer's Form W-2 wages and other oil-related DPAD information to the related fields to Individual Interview Form K-7. The print positions for statement reference to "Adjustments to shareholders' equity" line is updated. Maine The option to suppress Form 941P-ME now also suppresses Schedule 2P and Schedule 3P when indicated on Maine-General > Options > Suppress Form 941P-ME (Interview Form ME-1, Box 32). New Jersey North Dakota Wisconsin New Jersey distributions reported on Schedule NJ-K-1, Parts II and III and Schedule K will now match federal distributions when detail is input with ratio ID number. Form 60, Page 1, "Extension" Box, will be checked automatically when ND Form 101 or federal Form 7004 is present. Form 5S, page 3, Schedule Q, line 6 revision now offsets additional tax on built in gains with net business loss carryforward. Technology Updates 6

Estate and Gift (706/709) Product Updates Return to Table of Contents. Federal When the Schedule B Column C Worksheet has more than one page, the information displayed on page one now prints. Technology Updates 7

Upcoming Releases Return to Table of Contents. Look for the following updates in a future release. California Electronic Filing Form 3527, New Jobs Credit, will now process correctly for a California Combined Return that is being electronically filed. Upcoming Releases 8

Highlights for Release 2012.01000 Status of IRS Release of 2012 Government Forms and IRS Approach to Pending Legislation With tax season approaching and Congress still in session considering legislation that impacts 2012 tax returns, the IRS has begun releasing forms that have the flexibility to accommodate retroactive changes to 2012 tax law. The current IRS approach is to leave the forms in 2011 format, replacing the descriptions of lines with lapsed tax provisions with "Reserved." To date, Forms 1040, 1040A, 1040NR, 1040 Schedule A, 3468, 3800, 4136, 6478, 6765, 8689, 8820, 8834, 8835, 8844, 8845, 8859, 8864, 8900, 8908, 8909, and 8910 contain Reserved fields. The IRS has not officially released draft versions of Forms 1065, 1120, 1120S, or 1041. ProSystem fx Response to IRS Approach Given the current IRS approach, ProSystem fx is prepared as follows: Draft, preliminary, and final versions with "Reserved" fields will be released. All 2011 tax calculations remain in place regarding expired provisions, in anticipation that some or all will be extended retroactively by Congress. Reserved fields will be completed, if applicable. Current 2012 tax rates, limitations, and thresholds are being used within these calculations, other than alternative minimum tax, which remains at 2011 levels. Any return containing a form with an amount in a Reserved field will include a diagnostic indicating that the return was prepared with an expired provision in use. Form 1065 pp. 1-5, Form 1120S pp. 1-5, and Schedule D (1120, 1120S, and 1065) will print with portions of the forms intentionally left blank. Calculations of these forms will remain visible using the information we currently have regarding the 2012 tax calculations. These forms will be updated as soon as drafts or final versions are released from the IRS. The IRS requires that only forms officially posted on the IRS.gov Web site can be made available to the public, so these forms are not official IRS versions. This method allows us to be as prepared as possible for any late legislative changes. We continue to monitor Congressional activity and the IRS approach to open items daily. Windows 8 Compatibility With Release 2012.01000, ProSystem fx Tax is compatible with Microsoft Windows 8. Please refer to the CCH Compatibility Schedule for important information, as well as product release information for other ProSystem fx applications, at this location: http://support.cch.com/supportedenvironments/operatingsystems.aspx. Highlights for Release 2012.01000 9

Notes: CCH will support 32-bit and 64-bit versions of Microsoft Windows 8 Professional and Enterprise operating systems in conjunction with ProSystem fx Suite. CCH will not support Microsoft Windows 8 Home versions. CCH does not support touchscreen features. Due to extensive programming changes required for Windows 8 compatibility, CCH has updated the product releases stated in the above location. We recommend you maintain a Windows 7, XP, or Vista workstation within your firm to run prior year versions of ProSystem fx software. For ProSystem fx Tax, you may utilize Windows 8 for prior year return processing provided these prior year releases were installed using Windows 7, XP, or Vista operating systems. If you need to install or re-install versions of Tax prior to version 2012.01000, you must conduct the installation from a Windows 7, XP, or Vista machine. Tax Notebook Toolkit Tax Notebook Toolkit is now available for processing. Electronic Filing Status System New Filtering Options. Two new filtering options were added. Filter your view to exclude returns on extension, or to view only returns with signature forms not received. Select the filtering options on the Filter/Search Panel: Exclude Returns on Extension Show Returns with Signature Forms Not Received Return Delivery Receipt. A new status has been added to the Electronic Filing Status System. For certain Michigan and Ohio cities, a receipt of delivery of the return to the city is received. To obtain an official city e-file acknowledgement, use the link for contact information in the provided Alert. Authorized e-file Provider. The IRS no longer accepts Form 8633, Application to Participate in the IRS e-file Program. You must submit an online application to become an IRS e-file provider. See the IRS.gov Web site for more information. Search Results List. To provide more clarity, the icons used in the Search Results List were changed to the following: Not Accepted. The Rejected return icon name was changed to Not Accepted. This icon indicates that the return is either in a rejected or stopped status. Alert. If a return has a status of accepted, the alert contains information provided by the taxing authority. If the return is in another status, the alert may contain information provided by CCH. Search Results columns. Changes to the columns include the following: The DCN column was changed from a default column to an optional column. Note: You will see this change after you select Save on the first tab in the View option menu. Due Date was changed to Federal Due Date. You can configure the columns that display in the Search Results List on the View Preferences page. Alert Report. A new report has been added. View the alert report by clicking the hyperlink next to the Alert indicator. The Alert report contains information provided by the taxing authority or CCH. Highlights for Release 2012.01000 10

Extensions. To help you quickly differentiate between extensions and returns in the Electronic Filing Status System, extensions display in the Search Results List with a different row color. For additional information on any of these features, see the ProSystem fx Tax User Guide or the ProSystem fx Electronic Filing Status System Help. Tax Preparation Extensions and 1st Quarter Estimate Vouchers. From File > Print > Extensions and 1st Quarter Estimate Vouchers, you can select to send extensions to printer, to PDF files, or to both. You can also select to print extension letters, if applicable. Status of Electronically filed returns. To allow users to view the status of the electronically filed return from within the tax return, a new Electronic Filing Status column has been added to the Select Returns for Export and Select Extensions for Export dialogs. This column displays the current electronic filing status of the returns or extensions available for export. The column has also been added to the Electronic Filing Status report. Please note that the column will update only when you access the reports. The column will not be updated until you access the return again or access either the Export dialog or the Status Report. Electronic Filing Options Print Dialog. Changes to the Electronic Filing Options print dialog include the following: Export to electronic filing only. Select this option to bypass printing. Click OK to continue the export for electronic filing. Export to electronic filing and print. Select this option to print returns or extensions in addition to exporting the selected items for electronic filing. Click OK to continue the export and print for electronic filing. Worksheet View Forms List. To provide easy access to Worksheets, a new navigation screen for Worksheets has been added. You can choose from a full list of available worksheets for the return type selected by using View > Full Window Worksheets List. To select worksheets from the Category menu, select View > Worksheet Menu/Tree. Locked Returns. You now have the ability to look up a list value if a return has been locked. You can view available options for a particular field but are not able to make changes to the return. Group Diagnostics. Federal and State diagnostics are now grouped by taxing authority based on the tree menu government view order. Within each severity type (for example: caution, informational) you can quickly find the desired taxing authority. Import or Export Foreign Entities Data. Form 8858 is now available as a return type to select when importing or exporting foreign entities data. From File > Import or Export > Foreign Entities Data from Spreadsheets, select to import or export Form 8858 data. 1041 Returns. The following enhancements have been made: Partial Grantor Trust. We have provided the capability to prepare a trust return that is part grantor trust and part other type of trust. Qualified Funeral Trust. We have installed form 1041-QFT and all related calculations. Form 8865 Automation. A new feature is available in the 1065 program to generate standalone versions of Form 8865. This feature allows for the full use of the Partnership program including all calculations, special allocations, Trial Balance import, partnershiplevel Excel import, and apportionment features to be used in preparing Form 8865. Once done, a completed Form 8865 can be either attached in its entirety, including all supporting forms, schedules and statements, to a 1040, 1065, 1120, 1120S, or 990 return, or within the same 1065 return where most of the Form 8865 schedules are automatically prepared. Highlights for Release 2012.01000 11

Office Manager Multiple forms 8865s can be attached to a single return, and/or a single Form 8865 can be attached to multiple 1040, 1065, 1120, 1120S, and 990 returns simply by referencing the Client ID. All attached returns can be accessed through the Return Group tab. Electronic Filing Options. Multiple enhancements have been made to the electronic filing product options. The dialogs are found at Configure Applications > Tax Preparation > office group > Electronic Filing Options. See the online Help for the carryover of particular fields from tax year 2011 to tax year 2012 and for specific overrides on the returns in Tax Preparation. Alternative Filing Options has been renamed Electronic Filing Options to better reflect the use of these settings. The 2D barcode option has been moved from each specific product tab and it is now selected on the Print Options dialog at Configure Applications > Tax Preparation > office group > Print Options > Formatting and Print Options tab. A new option, Print the ERO name in the signature block of the 8879, has been added to the ERO tab. A new option, Electronically file extensions, has been added to the Individual, Partnership, Corporation, S Corporation, Fiduciary, and Exempt tabs. The option Electronic filing has been renamed to Electronically file return on all product tabs except Partnership. A new option, Suppress printing of taxpayer signature dates, has been added to the Individual tab. The drop-down selections for Transmittal/filing instructions paragraph on Individual and Fiduciary tabs now reflect the 8879 option. A new option for all tax products that ProSystem fx Tax electronically files allows the preparer to receive an email reminder regarding the status of the 8879. Select Send notification when 8879 not received and specify when you want notification by entering the number of days after the return status was set to Ready to Release. There is also an option to have the email sent to an alternate email address instead of the preparer. Formatting and Print Options. These changes have been added to the dialog at Configure Applications > Tax Preparation > office group > Print Options > Formatting and Print Options tab. You can select to mask any or all of these fields: Social Security Numbers, Employer Identification Numbers, and bank account numbers. There is also a selection to show the last four digits when masking. To enable the selected masking features, the Mask box must be selected on the Print dialog within Tax Preparation at File > Print > Print Entire Return or Print Preview. For tax years 2010 and 2011, the system will continue to mask all digits and data types. A new option, Suppress print of all extensions in the client copy, has been added to this tab. See the online Help for the carryover from tax year 2011 to tax year 2012. The 2D barcode option has been moved from each specific product tab of Electronic Filing Options and it is now selected on this tab. For the Small font options selection, the new default value is Convert fields to small fonts if needed. The previous default value was blank. This change affects new office groups only. Highlights for Release 2012.01000 12

1040 Options. A new option, Default for 1099-B, has been added to Configure Applications > Tax Preparation > office group > 1040 Options. There is a drop-down menu from which to select reporting of the 1099-B. 1120/1120S Options. The option Print total everywhere default amount worksheets has been removed as it only applies to tax years 2008 and prior (Configure Applications > Tax Preparation > office group > 1120/1120S Options). Letters and Filing Instructions Information. The following options have been added to Configure Applications > Tax Preparation > office group > Letters/Filing Instructions. See the online Help for the carryover of specific fields from tax year 2011 to tax year 2012 and for specific overrides on the returns in Tax Preparation. Include paragraph referencing IRS Revenue Procedure 2012-17 (1065 only). This option applies to Partnership returns only. Letters reflect paper instructions when electronic filing is disqualified. This new selection allows you to set this option by office group. Miscellaneous Options - Reserved for future use 1-9. On the dialog at Configure Applications > Tax Preparation > office group > Miscellaneous Options, all Reserved for future use fields have been reset to their initial defaults of blank or not selected. See online Help for the carryover from tax year 2011 to tax year 2012 of specific fields that are now used instead of the Reserved for future use fields. Configure Staff > Add or Setup > Tax Preparer. The following fields for preparer information have been added. These fields have also been added to the Signature Block dialog in Configure Applications > Tax Preparation > office group > Signature Block. Designation Code Jurisdiction License number Additionally, the field Federal alternate ID # has been changed to PTIN. Network Software and Network Clients As of release 2012.01000, CCH no longer supports Novell Networks and the Novell client software. Highlights for Release 2012.01000 13

Tax Product Enhancements 2012.01000 - Worksheet View Individual (1040) Product Enhancements - Worksheet View Return to Table of Contents. Federal Basic Data > General In the 2013 system, fields will be available for taxpayer and spouse first name, middle initial, last name, and suffix. In this year's system, users will have the ability to define those fields manually. The 2012-2013 Pro Forma program will use the manual entries first. If they are not present, logic will be present to make a "best guess." Interest > IRS 1099-INT A default change has been made to better serve the needs of our users. If tax-exempt interest has been entered in Box 8 of the 1099-INT, it will be considered state taxable. This is the opposite of last year where the interest was considered state nontaxable. The Consolidated Brokerage Statement is unchanged. The user continues to have input fields to explicitly state if federal tax-exempt interest is either state taxable or state nontaxable. Passthrough worksheets, Basis Limitation Information Enhancements A default change has been made to reduce audit risk. Rather than including guaranteed payments from basis calculation, we will exclude them. Pro Forma will be updated so existing returns will not require a change in the 2012 system. To be consistent with the change above, a default change will occur to include guaranteed payments from at-risk calculations. This will impact the At-Risk Limitations (Form 6198) section on several worksheets: Business worksheet Rent and Royalty worksheet Farm / 4835 worksheet Passthrough worksheets Tax Equalization - Exclude Interest, Dividends, and Passthrough Income Fields to "exclude from hypothetical calculation" have been added to the following: Interest > Foreign Dividends > Foreign Consolidated 1099 > Form 1099-INT Interest Income Consolidated > Form 1099-DIV Dividend Income Fiduciary Passthrough > General Partnership Passthrough > General S Corporation > General Note: The Large Partnership Passthrough worksheet will be updated at a later date. Tax Product Enhancements 2012.01000 - Worksheet View 14

Fields to "exclude resident foreign country income from hypothetical calculation" have been added to the following: Tax Equalization > Federal Calculation Options Tax Equalization Engagement > Engagement - Federal Calculation Options Depletion Summary Grids The worksheet view input for depletion properties and depletion production income and expenses has been changed to summary grids. These summary grids allow import, export, and sorting to occur. Property numbers on the Property Production Income and Expense are required for matching purposes. Depreciation Adjustments to Depletion Fields for depreciation and state if different depreciation have been added to Property Production Income and Expenses. These give the user more flexibility in defining depreciation related to depletion. Calculation Time Added to Return Summary The second page of the return summary now includes a line to indicate the time that the return was calculated. International ACH Transaction (IAT) / Diagnostic 21667 In the prior year, Basic Data > Direct Deposit / Electronic Funds Withdrawal had a checkbox for "International ACH Transaction (IAT)". This has been changed to a picklist with the following options: Blank (Default) Domestic Account Foreign Account Leaving the question blank would operate as it did in prior years. Diagnostic 21667 would issue and the banking information would carry through the return as a domestic account. Selecting "Domestic Account" would suppress diagnostic 21667 and the banking information would carry through the return as a domestic account. Selecting "Foreign Account" would suppress diagnostic 21667 and the banking information would carry through the return as a foreign account. State diagnostics would issue. Pro Forma will change checked entries in 2011 to foreign accounts in 2012; 2011 blank entries will assume domestic accounts with an accompanying preparer note. Form 5471 - Dynamic Table for Shareholders In worksheet view, a dynamic picklist has been added on Information Return of US Persons with Respect to Foreign Corporations > Separate Schedule I - Shareholder's Income from Foreign Corporations > Shareholder name. The picklist will allow valid values to be selected from entries on Information Return of US Persons with Respect to Foreign Corporations > Schedule B - U.S. Shareholders of Foreign Corporation. Tax Product Enhancements 2012.01000 - Worksheet View 15

Foreign Tax Credit (FTC) Carryback Diagnostics Diagnostics have been added to alert the user that they may need to amend their return to reflect the foreign tax credit carryback. Form 1116. A foreign tax credit carryback has been calculated in the amount of $&$ for the general limitation income category. Foreign tax credit carryovers have been adjusted to reflect the carryback. The prior year return may need to be amended to reflect the foreign tax credit carryback. Form 1040-ES - Statement for Adjusted Gross Income A statement has been added to provide the user additional detail in regards to Form 1040-ES, Line 1 "Adjusted gross income you expect in 2013." Office Manager - Additional Fields for Form 2848 Office Manager fields have been added per preparer for the following: Designation code Licensing Jurisdiction License/Bar or Enrollment Number Overrides are available on Power of Attorney > Representative(s)/Appointee(s). Federal Elections - New Election for Section 1.1367(g) Input has been added for this election. It may be found on Federal Elections > Election to Adjust Basis of Shareholder Stock in S Corporation. Letters/Filing Instructions Letters have been updated to support electronic filing of any state amended returns that may be added. Conservation Expenses Calculation Gross conservation expenses entered on Farm / 4835 > Expenses will be multiplied by 25% to calculate net conservation expenses. An override for net conservation expenses is available when there is a gain on the sale of farm animals from Schedule D or Form 4797. This override may be found on Farm / 4835 > Expenses. Schedule J - Statement for Elected Farm Income A statement has been added to provide the user additional detail in regards to Schedule J, Line 2a "Elected farm income". This line contains an optimization, and the statement indicates how the program arrives at the final number. 1099-G - Ability to Associate to Schedule F Input has been added to associate a 1099-G to a Schedule F. Agricultural program payments entered on Other Income > Certain Government Payments (IRS 1099-G) will flow to Schedule F and/or Form 4835. In addition, agricultural payments have been added to the Certain Government Payments (IRS 1099-G) summary grid to facilitate data entry and import/export. Tax Product Enhancements 2012.01000 - Worksheet View 16

Form 1116 - Suppress Statements An option has been added to suppress statements associated with Form 1116 and Form 1116AMT. This option is present on Returns Option > Supporting Statements Print Options > Form 1116 supporting statements. Stocks, Securities, and Other Non-Passive Transactions Summary Grid Consistency To the extent possible, the summary grids for Stocks, Securities, and Other Non-Passive Transactions on the Gains and Losses worksheet and Consolidated 1099 worksheet have been made consistent. This will allow users to more easily import and export this type of data in the system. TSJ, FS, and State fields are not present on the Consolidated 1099 worksheet as they are present in another section on this worksheet to reduce the data entry required by the user. Depreciation - Partial Distribution A partial distribution of an asset may be made through an entry on Depreciation > General > Partial distribution. This box may be used to enter either a percentage or an amount. A value of less than 1 is considered a percentage, while a value of 1 or more is considered an amount. When this field is used, a new asset will be created with applicable information included. Certain input fields for the existing asset will be reduced accordingly. Once the user makes the entry and attempts to leave the field, they will be alerted that input changes will be made. Also, they will be made aware that the action can only be undone manually. Additional information is available to the user within the partial distribution field's help screen. Depreciation - Diagnostic for ADS Assets Diagnostic 30360 will no longer issue for each farm asset using a method of ADS (alternative depreciation system). Like-Kind Exchanges to Form 2106 Assets attached to Form 2106 / Statement SBE may be a part of a like-kind exchange. Tax Product Enhancements 2012.01000 - Worksheet View 17

Form 8889 - HSA Contributions from W-2 Input Form 8889, Lines 4 and 9 will now reference data entry from Wages > IRS W-2 > Box 12 code and amount fields. When a code of "R" is used for employer contributions to an Archer MSA, the amount will be included in the calculation of Form 8889, Line 4. When a code of "W" is used for employer contributions to a HSA, the amount will be included in the calculation of Form 8889, Line 9. Excess Contributions to Coverdell ESAs Input has been added to calculate a penalty for excess contributions to Coverdell ESAs on Retirement Plan Taxes > Distributions from Education Accounts and Excess Contribution Information. In order to calculate each contributor's limit for the year, the contributor's filing status and modified AGI must be entered. If the amount of contribution made by that contributor exceeds their contribution limit, a penalty is calculated. Additional information is available in the help screens. Shareholder Debt Basis Calculation Input has been added to compute the shareholder's debt basis. This input may be found on Passthrough > Basis Limitation Information, under the heading titled Debt Basis. Page 2 of the S Corporation Basis Worksheet in the government menu indicates how the total shareholder stock and debt basis is calculated. Input Consistency for 1099 Questions To promote consistency across systems, the 1099 questions changed on the Business worksheet, Rent and Royalty worksheet, and the Farm worksheet. The questions now state: If you made payments during the tax year that would require you to file Form(s) 1099 If you filed, or will file all required Form(s) 1099 A checkmark is a valid entry. California Source Option New options have been added to Passthrough > Activity > State grid, California source. The first two options listed below are new: Amounts in state column are CA all-sources amounts Use state amounts for CA source and CA all-sources Use state amounts for CA source and fed amounts for CA all-sources (default) As the name suggests, these options will only change the California return. A different number for can now be entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts. Nonresident / Part Year Resident State Overrides Input has been added at the federal level to allow state information to be overridden. Tax Product Enhancements 2012.01000 - Worksheet View 18

Export/Import Category in Worksheet View A new category has been added to Worksheet View that contains several worksheets: Depletion Property Summary Fiduciary K-1 Partnership K-1 S Corporation K-1 Many of these worksheets use grids that allow import and export of data to and from the return. Form and Law Changes 1099-INT 1099-DIV The IRS released a new 1099-INT. The state field is now present in Box 11 and the program has been changed to match. This small change may catch some preparers familiar with our system off-guard. The state code is no longer at the top of the form as many users will expect. In addition, the IRS added Box 12 for state ID, and Box 13 for state tax withheld. Input fields were available for this data in the prior year and were moved to match the new 1099-INT. The IRS also released a new 1099-DIV, with the same changes to state, state ID, and state tax withheld. Two new fields have also been added to the 1099-DIV by the IRS: exempt-interest dividends (Box 10) and specified private activity bond interest dividends. 1099-K A new source document was made available by the IRS, the 1099-K. It is available on the Other Income > Payment Card and Third Party Network Transactions (IRS 1099-K). The 1099-K may be associated to a business, farm, or rent / royalty through input. If not tied to any of these places, payments entered here will flow to Form 1040, Line 21. The IRS has indicated that they will not have separate lines on the Schedule C, Schedule F, and Schedule E for "merchant card and third party payments". Amounts will be included in the gross number with a supporting statement. Checklists Form 8863 (Education Credits) and Form 8867 (Paid Preparer's Earned Income Credit Checklist), the IRS will be requiring more information to determine eligibility to take certain credits. Input fields will be added as needed. Form 8915-RA Removed Bank Products Form 8915-RA (Qualified Hurricane Retirement Plan Distributions and Repayments) has been removed from the system. Form 8930 (Qualified Disaster Recovery Assistance Retirement Plan Distribution) will remain. No longer supported. Tax Product Enhancements 2012.01000 - Worksheet View 19

Additional Field Information New Fields Required to file Form TD F 90-22. Moved to the Interest > Foreign Account Information Basic Data > Direct Deposit / Electronic Funds Withdrawal Entity number (TX only) State use Electronic Filing > General Entity number (TX only) allows payment due to be applied to a particular entity State use is available for MI-DTW payment voucher usage Electronic Filing > PDF Attachments Option to suppress QEPD Option to suppress 1065 K-1 basis limitation Option to suppress 1120S K-1 basis limitation Option to suppress sale of home Returns Option > Supporting Statements Print Options Form 1116 supporting statements Depreciation and Depletion Options and Overrides > Depreciation Options Kansas first year deduction option Two Year Comparison > Other Taxes Homebuyer repayment Federal Elections > Election to Adjust Basis of Shareholder Stock in S Corporation Interest > IRS 1099-INT Interest > Foreign S Corporation name Employer identification number Recipient state Recipient ZIP Recipient foreign country code Recipient foreign province/state/county Exclude from hypothetical calculation Tax Product Enhancements 2012.01000 - Worksheet View 20

Dividends > IRS 1099-DIV Dividends > Foreign Recipient state Recipient ZIP Recipient foreign country code Recipient foreign province/state/county Exempt-interest dividends Specified private activity bond interest dividends Exclude from hypothetical calculation Consolidated 1099 > General Recipient foreign country code Recipient foreign province/county Consolidated > Form 1099-DIV Dividend Income Exclude from hypothetical calculation field Consolidated 1099 > Form 1099-INT Interest Income Exclude from hypothetical calculation field Gains and Losses > Asset Acquisition Statement TSJ Note: This replaces the FSO field. Rent and Royalty > Tax Equalization Farm / 4835 > Expenses Hypothetical AMT federal passive activity loss carryover Conservation expenses - gross Other Income > Miscellaneous Income Recipient foreign country code Recipient foreign province/state/county Miscellaneous Income > Other New York City tax withholding Yonkers tax withholding Other Income > Certain Government Payments Recipient foreign country code Recipient foreign province/state/county Tax Product Enhancements 2012.01000 - Worksheet View 21

Other Income > Payment Card and Third Party Network Transactions (IRS 1099-K) All fields Itemized Deductions > State and Local Sales Tax Information Itemized receipts Itemized Deductions > Contribution Carryovers Depreciation > General Cash, 50%, 2011 amount Cash, 30%, 2011 amount Appreciated property, 30%, 2011 amount Appreciated property, 20%, 2011 amount Conservation real property, 100%, 2011 amount Conservation real property, 100%, 2011 AMT amount Conservation real property, 50%, 2011 amount Conservation real property, 50%, 2011 AMT amount Kansas first year deduction option Kansas deduction Date ceased to qualify for Kansas deduction Noncash Charitable Contributions > Noncash Charitable Contributions of $5000 or Less Vehicle identification number Retirement Plan Taxes > Distributions from Education Accounts and Excess Contribution Information Name of contributor Filing status of contributor Amount of contribution Contributor's modified AGI Residential Energy Credits > General 2011 windows expense 2011 nonbusiness energy credit Credit for Prior Year Alternative Minimum Tax > Credit for Prior Year Alternative Minimum Tax (Form 8801, Form 1116) Taxes reclassified under high tax kickout Tax Equalization > Federal Calculation Options Exclude resident foreign country income from hypothetical calculation Resident foreign country code - override Tax Product Enhancements 2012.01000 - Worksheet View 22

Tax Equalization Engagement All fields Extensions > Name/Address to Which Form 4868 or 2350 Correspondence Should be Sent Deleted Fields State if different ZIP or postal code if different Electronic Filing > Bank Products Options Bank product will be applied for with River City Bank for this return Bank product application also applies to the home state return Confirm that you have received the proper consent for disclosure of taxpayer information to the bank Letters and Filing Instructions > Use and Disclosure Consent Templates Bank product use and disclosure option Two Year Comparison > Other Taxes Advance earned income credit Form 5405, Line 16 Wages, Salaries and Tips > Social Security and Medicare Tax on Unreported Tip Income Business > General Business > Foreign E-file Pro Forma E-file explanation for unreported tip income Not small business 1099 blank Gross amount of merchant card / third party network payments reported on Form 1099-K 8938 code 8938 name Gains and Losses > Sale of Home section 8938 code 8938 entity Tax Product Enhancements 2012.01000 - Worksheet View 23

Gains and Losses > Asset Acquisition Statement FSO Note: This was replaced by the TSJ field. IRAs, Pensions and Annuities > IRA Information Basis in rollovers from qualified retirement plans for prior years Amount from 2010 Form 8606, Line 20a Amount from 2010 Form 8606, Line 25a for rollovers to Roth IRAs Basis in Roth IRA conversions prior to 2010 Populate Part III if no distributions from Roth IRA field Amount of distribution allocable to in-plan Roth rollover within 5 year of rollover Amount from 2010 designated Roth Account Income Acceleration > Line 3 Amount from 2010 Form 8606, Line 25a for an in-plan rollover to Roth account Populate Part IV if no distribution IRAs, Pensions and Annuities > Qualified Disaster Recover Assistance Retirement Plan Information All fields Rent and Royalty > General section Leave 1099 questions blank Rent and Royalty > Income Merchant card and third party payments - rent Merchant card and third party payments - royalty Cash back Rent and Royalty > Foreign 8938 code 8938 name Fiduciary Passthrough > General Small business code Farm / 4835 > General Farm / 4835 > Foreign Leave 1099 questions blank 8938 code 8938 name Tax Product Enhancements 2012.01000 - Worksheet View 24

Depreciation > Listed Property and Percent Excluded Total business miles after 6/30 Depreciation Totals > Election to Expense Certain Tangible Property Type Carryover of disallowed deduction from last year for real property Employee Business Expense > Listed Property Information Business miles after 6/30 Recapture > Recapture of Low-Income Housing Credit (Form 8611) Foreign country Foreign province/county Nonconventional Source Fuel Credit (Form 8907) > Facility Information Small business code Alternative Motor Vehicle Credit (Form 8910) > Alternative Motor Vehicle Credit Small business code Other Credits > Flowthrough Credits - Form 8931 - Agricultural Chemicals Security Credit Small business code Other Credits > Flowthrough Credits - Form 8932 - Credit for Employer Differential Wage Payments Small business code Other Credits > Flowthrough Credits - Form 8933 - Carbon Dioxide Sequestration Credit Small business code Expatriate Wages > Wages 8938 code 8938 name Expatriate Information > Other Income, Adjustments and Noncash Income 8938 code 8938 name Tax Treaties > Election to Defer Taxation on RRSP and/or Canadian Pension Plan Earnings All fields Tax Product Enhancements 2012.01000 - Worksheet View 25

Tax Treaties > Statement in Accordance with Revenue Procedure 2002-23 to Report Efile 1040 All fields Community Property > Community Property Making work pay for taxpayer Making work pay for spouse 90-22.1 Mandated starting July 2013. Expected delivery Spring 2013 State efile Electronic filing of returns: adding TX Electronic filing of amended returns: NY only Electronic filing of estimates: KS Electronic filing of extensions: adding KS, MD, TX State Nonresident and Part Year State Overrides Alabama California A new feature allows the prorating of income between states based on percentages entered. A single, global percent can be used, or each income item can be prorated based on percent or amount. The percent/amount is applied to the total per income item, not to the underlying detail. Limitations: Not all states follow the Federal return to the letter Not all states allow efile without the detail available Added foreign employer address overrides to Alabama Individual > General > Basic Data > Lines 9-11 and 17-19 New donations to Alabama > General > Contributions New options have been added to Passthrough > Activity > State grid, California source. The first two options listed below are new: Amounts in state column are CA all-sources amounts Use state amounts for CA source and CA all-sources Use state amounts for CA source and fed amounts for CA all-sources (default) As the name suggests, these options will only change the California return. A different number for can now be entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts. Form CA 568 now allows suppression of Schedule A/B and Schedule K. New boxes have been added California > 568 Limited Liability Company Return of Income > Options. Tax Product Enhancements 2012.01000 - Worksheet View 26

Delaware Added interactive diagnostic functionality Hawaii Added Form HI N-109, PG1 and PG2. This is for the carryforward and carryback of a Hawaii NOL. Input is on Hawaii > Other > Carryback of NOL (Form N-109). MeF (modernized electronic filing) is available for 2012 returns. Indiana Schedule TCSP-40, Twenty-First Century Scholars Program Credit. Renter s Deduction input modified to allow separate input boxes for the Landlord s and Rental property city, state, and ZIP code on Income / Deductions worksheet > Renter s Deduction section > City through ZIP code fields. Income / Deductions worksheet > Private School / Homeschool Deduction section. Income / Deductions worksheet > Net Operation Loss Carryforward section > Domestic production activities field through Certain trade or business deductions based on employment of unauthorized alien field. Income / Deductions worksheet > Net Operation Loss Carryforward section > National Guard and reserve component member s deduction field through Nonresident military spouse earned income deduction field. Kansas Electronic filing of estimated taxes and extension payments only if direct debit input is present. Not allowed in batch electronic filing. Form K-64, Business and Job Development Credit removed due to expiration. Form K-89, Rural Opportunity Zone Credit (e-filing only) added. Schedule K-120EX, Expensing Deduction. A one-time deduction is available to Kansas businesses including sole proprietors for machinery and equipment purchased in the year that it is placed in service in Kansas. The expensing deduction must qualify with the IRS under IRC Section 168: Accelerated cost recovery system. Form K-40, Line 39 Kansas Hometown Heroes fund: All contributions are used solely for the purpose of advocating and assisting Kansas Veterans, dependents and survivors ensuring they receive all federal and state benefits they have earned. Enter on Line 39 the amount you wish to contribute to this fund (must be $1 or more). Massachusetts Michigan Installed the ability to have multiple entities of Form M-1310 "Statement to Claimant of Refund" tied to the federal occurrence number. Other > Statement of Claimant of Refund Due a Deceased Taxpayer > Occurrence Number. Form MI-4884, Pension Schedule. Form MI-4973, Pension Continuation Schedule. Form MI-4976, Home Heating Credit Claim Supplemental Income / Deductions worksheet > Voluntary Contributions section > Special Olympics field. Credits worksheet > Household Income section > Gifts or expenses paid on your behalf field. Tax Product Enhancements 2012.01000 - Worksheet View 27

Credits worksheet > Homestead Property Tax Credit (Form MI-1040CR) section > Taxable value of homestead includes unoccupied farmland classified as agricultural field. Income / Deductions worksheet > Nonresident and Part-year Information section > Domestic production activities deduction field. Other worksheet > Power of Attorney (Form 151) section > Additional Email Address, Additional Telephone Number, Additional Fax Number, Additional Contact Name, and Grant unlimited authorization fields. Other worksheet > Amended section > Small business investment tax credit field. Michigan Michigan Cities Missouri Montana Nebraska New input for additional electronic filing information for W-2 s on Michigan Cities worksheet > Income / Deductions section > Wages (for Nonresident Cities Only) and Additional Information sub-section. New input for Partnership or S Corporation taxes paid on Michigan Cities worksheet > Credits section > Credit for Taxes paid to Another City and Credit for Taxes Paid by a Partnership subsection. New check box for amounts Carried Forward for Miscellaneous Tax credits: Credits worksheet > Other Credits section > Carried Forward field. Adding Form MO-NJD Small Business Deduction for New Jobs. New input on Montana General > Options > Do not discuss return with your spouse field for check box for main form to not discuss return with your spouse. New Hampshire New Jersey Add NR/PY Schedule E state source statement. Added interactive diagnostic functionality. Letters and Return Summary now produce for NH SMLLC returns. New input on Business Tax Returns (NH-1040 and BET-PROP) Proprietorship Tax Return > Income / Deductions > Separate Entity Adjustments sub-section. New input on Single Member LLC (NH-1040 and BET-PROP) Business Profits Tax > Income / Deductions section > Separate Entity Adjustments sub-section. There are 3 new contribution codes allowed. Input has been added to New Jersey > General > Donations > Other contributions code. Created output forms for the NJK1P/NJK1S that were previously only for electronic filing purposes. The forms only print with the accountant copy of the return. The 2D barcode is now mandatory with more forms impacted. New York Electronic Filing MeF is available for 2012 PIT returns. Tax Product Enhancements 2012.01000 - Worksheet View 28

New Mexico North Carolina New Mexico has added 3 new credits for 2012: New Mexico > Credits > Other Credits (Form PIT-CR). MeF is available for 2012 returns. Form NC-478A is now obsolete and has been removed. Ohio Ohio Cities Oklahoma Oregon Pennsylvania Toledo. A primary source of income can be selected. Aggregate losses from income sources other than the primary source will be suspended. This option is activated by entering a code on Ohio Cities > Toledo Form IR > Primary income code. Valid entries are: W - Wage, S - Self-employment, E - Rental, M - Miscellaneous. Suspended losses from prior years may also be entered on Ohio Cities > Toledo Form IR section > Suspended Losses sub-section. All Cities. Credit for taxes paid overrides are now provided on Ohio Cities > Credit for taxes paid. These overrides allow the preparer to override the amounts used in credit calculation on a per city basis. An option has also been added to limit the credit to the amount of withholding and direct payments if less than the calculated tax. Suspended losses may be entered on Ohio Cities Income Allocation > Losses Suspended per Entity on a per entity basis. Oklahoma has added 6 new contributions this year: Oklahoma > General > Contributions. Multnomah has mandated 2D barcodes for 2012. Oregon has added direct deposit for its 529 College Savings Plan: Oregon > General > 529 College Savings Plan. Added new Form PA 40-X Pennsylvania > Other > Amended Return. Add ability to electronically file the spouse version. Pennsylvania Cities (PGH obsolete) In accordance with PA Act 32, the Pittsburgh City/School District and Mount Oliver individual earned income tax returns are prepared using the Pennsylvania Cities product; there is no longer a separate product for Pittsburgh available through ProSystem fx for 2012. Pertinent information entered through the 2011 Pittsburgh product will pro forma/roll forward into the 2012 Pennsylvania Cities product as a result. Utah Credits > Nonrefundable Credits > Gold and silver coin sale credit: Added input for gold and silver coin sale credit. Credits > Nonrefundable Credits > Veteran employment tax credit: Added input for veteran employment tax credit. Tax Product Enhancements 2012.01000 - Worksheet View 29

West Virginia Schedule H, Certification of Permanent and Total Disability input modified to allow separate input boxes for the Physician s address, city, state, and ZIP code on Other > Certification of Permanent and Total Disability (Schedule H) > Address through ZIP code. Tax Product Enhancements 2012.01000 - Worksheet View 30

Partnership (1065) Product Enhancements - Worksheet View Return to Table of Contents. Schedule K-1, Federal and State Schedule K-1 s are now overrideable from Worksheet input K-1 s at the Federal and State level can be overridden on Worksheet Federal > Partners > Federal/State Schedule K-1 Overrides. This new summary grid allows the user to import from an excel spreadsheet for more efficient entry of Schedule K-1 partner data. Schedule K-1, Option to Print Partner s Name Instead of Partner Number on Top of the Federal Schedule K-1 Input is now available, to request the partner name to print on top of the Schedule K-1 instead of the partner number on Interview Form 2, Box 47 (Worksheet Federal > General > Return Options > Processing Options > X to print partner name rather than number on Schedule K-1). Schedule K, Option to create Schedule K based upon Schedule K-1 overrides An option is available to complete Federal Schedule K with the Schedule K-1 override entries. Use Worksheet Federal > Partners > General Options > Schedule K-1 Print Options > Calculate reverse Schedule K from K-1 override. Schedule K-1 Multiple Activity, Schedule of Activities Alternative A new summary grid is available to import activity information for Schedule K-1 support from Excel. Use Worksheet Federal > Partners > Federal/CA Alternative K-1 Activity Schedule Import. Passthrough Activities, An Export Summary Grid is added for Passthrough Activity Data An export summary grid is now available to provide a spreadsheet to move passthrough activity level data to the following systems: 1040, 1041. Passthrough, IRS K-1 Input Format A new input method is added for passthrough. The IRS K-1 format is available on Interview Form IRS K1P (Worksheet Federal > Income/Deductions > Partnership Passthrough) and IRS K1F (Worksheet Federal > Income/Deductions > Fiduciary Passthrough). Alternative Method for Entering Federal Special Allocations in Worksheet View Depletion New worksheets are available to enter Special Allocations for Federal allocable items. These worksheets use the allocable item description as opposed to the allocation codes. This method of allocation is available in Worksheet Federal > Partners. Summary grids are available for Property, Well and Depreciation on Worksheet Federal > Income/Deductions > Depletion > Property and Cost Depletion; Property Production Income and Expenses; Depletion Property/ Overhead Depreciation and Amortization. Tax Product Enhancements 2012.01000 - Worksheet View 31

Depletion, Depreciation Adjustment Well level depreciation may be adjusted on Interview Form E-2, Boxes 130 and 139 (Worksheet Federal > Income/Deductions > Depletion > Property Production Income and Expenses > Depreciation; Depreciation State (if different). Depletion, Option to Produce an Alternative Depletion Schedule that uses a Property ID Code Instead of a Property Description Depletion An option is available to produce the Schedule of Mineral Interests Summary using the Property ID Code instead of the Property description on Interview Form E-2, Box 109 along with Interview Form 2, Box 45 (Worksheet Federal > Income/Deductions > Depletion > Property and Cost Depletion > Property ID Code along with Worksheet Federal > General > Return Options > Processing Options > Option to Suppress Depletion Schedules). The partial barrel calculation is added which allows marginal barrels to be taken first. Depletion Property Summary Grid Export Partner Basis A grid is added to the Export tab for depletion. This data will be a summary of the property information. It will populate with the data from the Schedule of Mineral Interest Properties. It can be exported to an Excel spreadsheet. New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-1, Boxes 36 and 110 (Worksheet Federal > Partners > Partner Basis > Partner Basis Options > Include reduction of liabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Include reduction of liabilities in adjusted basis) for the Partner Basis Worksheet. New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-3, Boxes 37 and 113 (Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Options > Include AMT reduction of liabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Information > Include AMT reduction of liabilities in adjusted basis) for the AMT Partner Basis Worksheet. New input is available for loans to partners on Interview Form PB-1, Box 111 (Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Loan to partner) for the Partner Basis Worksheet. New input is available for loans to partner on Interview Form PB-3, Box 114 (Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Information > Loan to partner) for the AMT Partner Basis Worksheet. New input is available for loans from partner on Interview Form PB-1, Box 112 (Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Loan from partner) for the Partner Basis Worksheet. New input is available for loans from partner on Interview Form PB-3, Box 115 (Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Loan from partner) for the AMT Partner Basis Worksheet. Tax Product Enhancements 2012.01000 - Worksheet View 32

Form 2848 - Power of Attorney and Declaration of Representative/Form 8821, Tax Information Authorization Office Manager now contains fields for designation code, licensing jurisdiction, and license/bar or enrollment number. Overrides are available on Interview Form O-12, Boxes 110 through 112 (Worksheet Federal > Other > 2848 Power of Attorney > Representative(s)/Appointee Individuals). Form 2848 is now prepared from entries on Interview Form O-12. Form 8821 is now prepared from entries on Interview Form O-12A. Form 8949, Sales and Other Dispositions of Capital Assets Added and available for processing. Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships State Returns Form 8865 may now be prepared in one return, and accessed and filed from other returns. This feature applies to the Individual, Partnership, Corporation, S Corporation, and Exempt Organization systems. In addition, a Form 8865 version of the following forms is prepared: Form 3468, Form 4562, Form 4797, Form 8825, and Schedule F. State Schedule K-1 Overrides State level Schedule K-1s may be overridden on Worksheet Federal > Partners > Federal/State Schedule K-1 Overrides. State Schedule K-1 Overrides Reconciliation A reconciliation of any State Schedule K-1 overrides entered is produced to tie the override numbers to the state Schedule K-1. Estimate Reminder Letters Added for States and Cities that have Estimates Estimate reminder letters for states and cities may be requested on Interview Form 9, Box 40 (Worksheet Federal > General > Letters and Filing Instructions > General Letter Information > Estimate reminder letter). The Office Manager > Print option is also available. State K-1 Export to 1040 is expanded to Arizona, Iowa, Nebraska, North Dakota, and Utah Common State Tab in Worksheet is Expanded for Adjustments to Federal Income and Schedule K Overrides Arizona Worksheet Federal > Common State. Form 338, Credit for Investment in Qualified Small Businesses is added and available for processing. Tax Product Enhancements 2012.01000 - Worksheet View 33

California Form 592, Partner/Member information is now in a summary grid format for Worksheet input. Schedule K-1 Multiple Activity, Schedule of Activities Alternative. A new summary grid is available to import activity information for Schedule K-1 (565) support from Excel. Use Worksheet Federal > Partners > Federal/CA Alternative K-1 Activity Schedule Import. Illinois Indiana Maine Electronic Filing is available. Form WH-18, Information is now in a summary grid format for Worksheet input. Form 1065ME and Schedule PSI are obsolete. New Forms 941P-ME and 941P-PV-ME are used for partnership returns this year. Maryland Schedule K-1 from a Passthrough, Input is added for a Maryland partnership that had taxes paid on their behalf from a passthrough to be able to include the K-1 from that passthrough in the electronic file. Use Interview Forms MD16 and MD17 (Worksheet Maryland > General > Schedule K-1 Information from Passthrough, Electronic Filing). New Hampshire Pennsylvania Rhode Island Tennessee Combined Group Processing is available. Form REV-774, Assignment of Tax Credit is added and prepared from entries on Interview Form PA20 (Worksheet Pennsylvania > Corporate Tax Report > General > Assignment of Tax Credits). Form RI 1096V, Passthrough Withholding Payment Voucher is added and is available for payment of passthrough withholding. Form FAE 170, Schedule G is now completed when the Federal 1065 Schedule L is not required. Tax Product Enhancements 2012.01000 - Worksheet View 34

Corporation (1120) Product Enhancements - Worksheet View Return to Table of Contents. Federal Schedule M-3 (Form 1120) Form 1118 Form 1120-F Form 4626 Form 5452 Form 6765 Form 8810 Form 8827 55 new interactive Schedule M-3 diagnostics have been added. Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line. Interest and dividends now can be automatically carried to Form 1118 based on detail entries on Income/Deductions > Interest or Dividend (Interview Forms B-1 and B-2.) Form 1118 will be automatically created from these entries for income category N (Passive income) and A (General income). Schedule W on page 7 has been added to support the computation of overpayment resulting from tax deducted and withheld under Chapter 3 on Line 8b, page 1. Statement of AMT Domestic Production Activities Deduction (DPAD) Adjustment will be produced to support the AMTDPAD adjustment included in Line 2o. The detailed statement will be produced to support Line 4d for net positive ACE adjustment from prior years. A new worksheet for figuring current year earnings and profits has been added. A new election has been added where you can elect to not reduce the R&D credit and also to not carry the credit to other deductions on page 1 of the return. A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list each member of the specified aggregate group. You can now enter year by year prior year minimum tax carryover detail on Credits > 8827 > Prior Year Minimum Tax Carryover (Interview Form A-5) with type M. Section 382 limitation capability also has been added. We refer to the prior year carryover entered in the Alternative minimum tax from prior year Form 4626 and Minimum tax credit carryforward fields as summary entries. When either one of these summary entries and new carryover detail entries are present, the summary entries will override Lines 1 and 2 of Form 8827 and detail entries will not carry to Lines 1 and 2 but will always carry to Lines 8a and 8b. Whenever detailed entries are present, Detailed Carryover Report to Next Year will always be produced. Tax Product Enhancements 2012.01000 - Worksheet View 35

Form 8858 A new Import/Export capability has been added for this form. Controlled Group Credit Summary This summary form has been added for the credits that can be allocated between controlled group members. The allocated credits carry automatically from Summary form to the appropriate credit forms. Tax Balance Summary It is designed to be a one glance check to insure major balances and tie-ins are in agreement. The Tax Balance Summary will only print in the accountant s copy. New State Adjustment Category Added to Worksheet View This new category allows access to every state s adjustment without navigating to each individual state. It is accessed from the federal level. There is no extra or less input data than the existing ones at the state level. If data is entered here, the state menu will also highlight. Return Type Error Message for Incomplete Input NOL Carryover Non-1120 (1120-PC, 1120-L etc) returns require two entries to generate. The first entry is the return code on General > Basic (Interview Form 1) and the second one is the mandatory entry on the worksheet or interview form specific to that return type. If an entry made on General > Basic (Interview Form 1) and no corresponding second entry is on the return specific interview form, an error message will now be generated. 2012 will be the first year the 20 year NOL carryover period will have an affect on the program. In the past, 1997 NOL would exceed the old 15 year carryover period and the program would have ignored it. For NOL originating in a tax year beginning after August 5, 1997 can be carried over 20 years. Calculation History State Codes 1099 Questions A new Calculation History report is informational that shows the results of the prior two calculations of the tax return. It is located on the federal menu following Form 1120. Input for State codes has been changed to display only US states plus XX and FC. Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data > Miscellaneous Information (Interview Form 4). Note that this input has been standardized across all systems and both questions are handled in the same way in every system. Schedule M-3 Option A new option to leave Schedule M-3 and Schedule B blank when the corporation is a member of a consolidated return is available at Sch L/M > General and Net Income (Loss) Reconciliation (Interview Form 4). This option applies to Forms 1120, 1120-PC and 1120-L. Tax Product Enhancements 2012.01000 - Worksheet View 36

Suppress Statements Mailsheets A new section Suppress Printing of Statements has been added to General > Return Options (Interview Form 4). You can now selectively suppress various statements from printing in return. Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheets addresses. NOL and Carryovers Depreciation You can now enter the detailed foreign tax credit carryover information with type F for regular tax and type FA for alternative minimum tax. The carryover amount will carry to Form 1118, page 2, Schedule B, part II, Line 5. You can now enter year by year prior year minimum tax carryover detail with type M. You can now enter year by year net positive ACE adjustments from prior years with type AC. You can now enter multiple section 382 limits for NOL and AMT NOL carryover. Previously it was limited to just one section 382 limitation. Section 382 limit also is expanded to General Business Credit and Credit for Prior Year Minimum Tax. The multiple section 382 carryovers will be grouped as one on the Carryover Data to the Next Year report. This new input is on Worksheet Federal > Alternative Minimum Tax > Net Positive Ace Adjustment from Prior Years (Interview Form 5). New code 19 for Mark-to-Market has been added for Schedule M-3 purposes. New column for Partial Disposition has been added. Input field Suppress automatic book adjustment has been added. When this option is present, we assume tax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustment for depreciation will be made. Rents New column for X if Direct Expense has been added. Royalty Extensions Input fields for X to exclude from quantity limit, Property ID code, Depreciation, and Depreciation - state if different have been added. Foreign Returns New input field Extension message to print at the top of extension form has been added. Input for attaching Form 8858 to Forms 1120, 5471 and 8865 have been condensed into one set of forms. Use Foreign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 to another return type. Tax Product Enhancements 2012.01000 - Worksheet View 37

8865 Crossover functionality As a new feature for 2012, you can prepare Forms 8865 in one return and then access and file those from another return. Also from one return you could access Forms 8865 from many other returns, using your current return as a master or combined return for e-file or paper filing purposes. A Form 8865 prepared this way is called a crossover 8865. A return accesses the Forms 8865 in another return by using Interview form FOR-CC, or Worksheet view 8865 Automated Feature Worksheet under Foreign menu. You can use this feature across five systems such as Partnership, S Corporation, Corporation, Individual and Exempt Organization. The capability to send a 8865 from one system to another and file it, include both automated and non-automated. (See Partnership level help for additional information. Automated 8865 is reference to 8865 generated automatically out of a Partnership return using 1065 calculations. This is also new for 2012.) The top unit (filing entity) is known as the 8865 reporting entity. 8865 level forms included this year are 4797, 8825, 4562, Schedule F and 3468. These are 8865 versions of corresponding return level forms. IRS Schedule K-1 Facsimile View Forms General State Foreign New Worksheets and Interview forms are available for IRS K-1 facsimiles. Enter information on these IRS K-1 interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. These new forms are in addition to older format. New columns have been added for K-1 Reconciliation Print Code and X NOT to Pro Forma. Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have been added to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC). 2 Year Comparison Form 6252 We will now display the Effective and Marginal tax rates for current and prior year. We will now calculate and display cumulative totals for all columns on 6252, page 2. New Insurance Election You can select to print the Section 831(b) election in Insurance > 1120-PC > Taxable Income Under Section 834 (Interview Form PC-3). Return Summary The second page of the return summary now includes a line to indicate the time the return was calculated. Tax Product Enhancements 2012.01000 - Worksheet View 38

Consolidated/Combined Returns Consolidated Tax Balance Summary A new workflow tool where you can see separate companies out of balance which causes the consolidated return to be out of balance. You can view each member company s tax balance summary from the consolidated return. You also can quickly identify if one member company is filing a Schedule M-1 when Schedule M-3 is required at the consolidated level. Consolidated Option Accumulate Prior Year AMT Credit Carryover Detail This new option has been added to Consolidated > Options (Interview Form CC-1). Detailed carryover entries are not automatically accumulated for consolidated returns. It must be requested on Consolidated >Options (Interview Form CC-1). We refer to the prior year carryover entered in the Alternative minimum tax from prior year Form 4626 and Minimum tax credit carryforward fields on Credits > 8827-Credit Prior Year Minimum Tax (Interview Form P-1A) as summary entries. The summary entries will never be accumulated. Summary entries at the consolidated level will suppress accumulation of the detailed entries even if this option is present. Consolidated Treatment for Net Positive ACE Adjustment from Prior Years Detailed carryover entries are not automatically accumulated for consolidated returns. It must be requested on Consolidated >Options (Interview Form CC-1). Prior year positive ACE adjustment should be on a consolidated basis, not separate company. The Net positive ACE adjustment from prior years override field on Taxes > Alternative Minimum Tax > Adjustments, Preferences and Other Items (Interview Form T-3) at the consolidated level will suppress accumulation of the detailed entries if this option is present. Option to Suppress Automatic Book Adjustment on General > Depr and Depl Options and O/R (Interview Form DP-9) This option is not applicable at the consolidated level. New Consolidated Statement Format Consolidated and Combined Statements have been merged into one workpaper. The new format simplifies the review. It applies to the 1120 federal system only. New Level 1 Diagnostics 12 new level 1 diagnostics have been added to alert the preparer of an out of balance condition in a separate company return that could throw the consolidated return out of balance. Three new level 1 diagnostics have been added to alert the preparer of separate company asset numbers on Interview Forms DP-2, DP-3 and DP-4 that do not have matching DP- 1 numbers (Interview only). Centralized Federal and State Consolidated Help This help can be accessed from form level help on Consolidated > Membership Information (Interview Form CC-1). All state consolidated help can be viewed in one area. Consolidated Option Suppress Automatic Depreciation Adjustment Options No change to original Option X on Consolidated > Options (Interview Form CC-1). Option 1 is the new option. If Option X is used, the depreciation reported in consolidated taxable income is the amount reported for each separate company s taxable income, not the amount reported on Tax Product Enhancements 2012.01000 - Worksheet View 39

its Form 4562. No adjustments are made. If Option 1 is used, we will use the depreciation computed for each asset at the separate company level, not the separate company depreciation deduction reported in its taxable income. We will base depreciation on the consolidated Form 4562, not the combined depreciation deduction. Automatic adjustment may still occur. Consolidated Option Carryover Statement Option (Division/DRE Only) Options 1 and 2 are new. You can now attribute all the current year loss to the parent only. Consolidated Option Treat Disregarded Entities as Taxable Entities This option on Consolidated > Options (Interview Form CC-1) will allow you to treat any Divisions or Disregarded Entities (DRE s) as taxable entities on the consolidated return. If this option is used, the Code for Consolidated return field on General > Basic Data (Interview Form 1) should not contain Division/DRE (the code V ) When this option is used, this return should not be filed for federal or state tax purpose. Consolidated Options for Accumulated Totals Only Depreciation New Option 1 Do NOT recompute total depreciation has been added to Consolidated > Options (Interview Form CC-1). Consolidated Form 5472 Accumulation Options New option Accumulate Form 5472 and use separate company name as reporting entity has been added to Consolidated > Options (Interview Form CC-1). This option is used to accumulate separate company name to print on Form 5472 instead of printing the consolidated name, address and FEIN. Consolidated Form 8865 Accumulation Options New option Accumulate Form 8865." In consolidated returns, 8865 will accumulate from separate companies. These options have been added as: Interview Forms: CC-1 Box 146; Worksheet View: Consolidated > Options > Accumulate 8865. Consolidated Statement Allocation of Current Consolidated Capital Loss to Member Corporations This option has been changed to allocate current consolidated capital loss to members without regard to section 1231 gain. Only members with current capital loss should be allocated a consolidated capital loss. Option Print Form 8916-A for a Mixed Group State This new option has been added to Consolidated > Mixed Groups > Life/Non-Life Mixed Group (Interview Form CCLNL-1). Use this option to produce a consolidated version of Form 8916-A for a Mixed Group. Alaska Added Form AK 6300 Incentive Credits Added Form AK 6310 Education Credits Tax Product Enhancements 2012.01000 - Worksheet View 40

Arizona Connecticut Added - Schedule ACS Arizona Air Carrier Apportionment Added Form CT-120 TCE - Connecticut Tax Credit Cap District of Columbia Georgia Added DC Unitary Combined Tax Return Added Form 900 - Georgia Financial Institutions Business Occupation Tax return Added Form PT-440 - Return of Business License Taxes (county and city level filing) Hawaii Illinois Added Form F-1, Hawaii Franchise Tax Return Added Form Form FP-1 - Hawaii Franchise Tax or Public Service Company Tax Install Payment Voucher Added Form N-755 - Hawaii Application for Automatic Extension of Time to file Hawaii Franchise Tax Return Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing Added Schedule 80/20 - Related-Party Expenses Added Schedule 4255 - Illinois Recapture of Investment Credits Kentucky Added Schedule KESA - Kentucky Environmental Stewardship Act Credit Maine Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld Added Schedule 2P - Pass-through Entity Withholding Listing Added Schedule 3P - List of Exempt Members Added Form 941P-PV-ME - Maine Payment Voucher Michigan - CIT Forms Added MI - Form CIT 4891, Michigan Corporate Income Tax Annual Return MI - Form CIT 4892, Michigan Corporate Income Tax Amended Return MI - Form CIT 4893, Michigan Corporate Income Tax Small Business Alternative Credit MI - Form CIT 4894, Michigan Corporate Income Tax Schedule of Shareholders and Officers MI - Form CIT 4895, Michigan Corporate Income Tax Loss Adjustment for the Small Business Alternative Credit Tax Product Enhancements 2012.01000 - Worksheet View 41

Missouri Nebraska MI - Form CIT 4896, Michigan Corporate Income Tax Unitary Business Group Affiliates Excluded from the Return of Standard Taxpayers MI - Form CIT 4897, Michigan Corporate Income Tax Data on Unitary Business Group Members MI - Form CIT 4898, Michigan Corporate Income Tax: Non-Unitary Relationships with Flow- Through Entities MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for Underpaid Estimated Tax MI - Form CIT 4900, Michigan Corporate Income Tax: Unitary Relationships with Flow-Through Entities MI - Form CIT 4901, Michigan Corporate Income Tax E-File Annual Return Payment Voucher MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits MI - Form CIT 4903, Michigan Corporate Income Tax Withholding Opt-Out Schedule MI - Form CIT 4905, Michigan Insurance Company Return for Corporate Income and Retaliatory Taxes MI - Form CIT 4906, Michigan Insurance Company Amended Return for Corporate Income and Retaliatory Taxes MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule for Financial Institutions MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return MI - Form FTW 4919, Michigan Schedule of Unitary Apportionment for Flow-Through Withholding MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer MI - Form MBT 4947, Michigan Schedule of Certificated Credits MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding MI - Form MBT 4974, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Insurance Filer MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Financial Filer Added Schedule NO-NJD, Missouri Small Business Deduction Added Form 1120NF - Nebraska Financial Institution Tax Return Added Form NFC - Statement of Nebraska Financial Institution Tax Credit Added Form 1120XNF Nebraska Amended Nebraska Financial Institution Tax Return Tax Product Enhancements 2012.01000 - Worksheet View 42

North Carolina New Hampshire Pennsylvania South Carolina Virginia Wisconsin Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can be automatically included in the combined report are Corporations, S Corporations, and Partnerships. Information for non-designated members that are Fiduciaries or Individuals can also be entered manually. Added Form REV-774 Pennsylvania Assignment of Tax Credit Added Form 1101B - Bank Return Tax Return Added Form 1104 - Savings and Loan Association Tax Return Added Schedule 500AB - Virginia Schedule of Related Entity Add Backs and Exceptions Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit Tax Product Enhancements 2012.01000 - Worksheet View 43

S Corporation (1120S) Product Enhancements - Worksheet View Return to Table of Contents. Federal Schedule M-3 (Form 1120) Form 5452 Form 6765 Form 8810 Form 8858 55 new interactive Schedule M-3 diagnostics have been added. Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line. A new worksheet for figuring current year earnings and profits has been added. A new election has been added where you can elect to not reduce the R&D credit and also to not carry the credit to other deductions on page 1 of the return. A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list each member of the specified aggregate group. A new Import/Export capability has been added for this form. Controlled Group Credit Summary This summary form has been added for the credits that can be allocated between controlled group members. The allocated credits carry automatically from Summary form to the appropriate credit forms. Calculation History A new worksheet that will display the calculated amounts for all income and deduction items for the past 4 return calculations. New State Adjustment Category Added to Worksheet View This new category allows access to every state s adjustment without navigating to each individual state. It is accessed from the federal level. There is no extra or less input data than the existing ones at the state level. If data is entered here, the state menu will also highlight. Calculation History State Codes A new Calculation History report is informational that shows the results of the prior two calculations of the tax return. It is located on the federal menu following Form 1120. Input for State codes has been changed to display only US states plus XX and FC. Tax Product Enhancements 2012.01000 - Worksheet View 44

1099 Questions Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data > Miscellaneous Information (Interview Form 4). Note that this input has been standardized across all systems and both questions are handled in the same way in every system. Suppress Statements Mailsheets Schedule K-1 Depreciation A new section Suppress Printing of Statements has been added to General > Return Options (Interview Form 4). You can now selectively suppress various statements from printing in return. Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheets addresses. A new option is available in General > Return Options > Processing Options (Interview Form 2) to print the shareholder name (rather than number) at the top of each schedule K-1. New code 19 for Mark-to-Market has been added for Schedule M-3 purposes. New column for Partial Disposition has been added. Input field Suppress automatic book adjustment has been added. When this option is present, we assume tax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustment for depreciation will be made. Rents New column for X if Direct Expense has been added. Royalty Extensions Input fields for X to exclude from quantity limit, Property ID code, Depreciation, and Depreciation - state if different have been added. Foreign Returns New input field Extension message to print at the top of extension form has been added. Input for attaching Form 8858 to Forms 1120, 5471 and 8865 have been condensed into one set of forms. Use Foreign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 to another return type. 8865 Crossover functionality As a new feature for 2012, you can prepare Forms 8865 in one return and then access and file those from another return. Also from one return you could access Forms 8865 from many other returns, using your current return as a master or combined return for e-file or paper filing purposes. A Form 8865 prepared this way is called a crossover 8865. Tax Product Enhancements 2012.01000 - Worksheet View 45

A return accesses the Forms 8865 in another return by using Interview form FOR-CC, or Worksheet view 8865 Automated Feature Worksheet under Foreign menu. You can use this feature across five systems such as Partnership, S Corporation, Corporation, Individual and Exempt Organization. The capability to send a 8865 from one system to another and file it, include both automated and non-automated. (See Partnership level help for additional information. Automated 8865 is reference to 8865 generated automatically out of a Partnership return using 1065 calculations. This is also new for 2012.) The top unit (filing entity) is known as the 8865 reporting entity. 8865 level forms included this year are 4797, 8825, 4562, Schedule F and 3468. These are 8865 versions of corresponding return level forms. IRS Schedule K-1 Facsimile View Forms General State Foreign Form 6252 New Worksheets and Interview forms are available for IRS K-1 facsimiles. Enter information on these IRS K-1 interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. These new forms are in addition to the older format. New columns have been added for K-1 Reconciliation Print Code and X NOT to Pro Forma. Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have been added to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC). We will now calculate and display cumulative totals for all columns on 6252, page 2. Return Summary State The second page of the return summary now includes a line to indicate the time the return was calculated. Alaska Added Form AK 6300 Incentive Credits Added Form AK 6310 Education Credits Arizona Georgia Added - Schedule ACS Arizona Air Carrier Apportionment Added Form 900 - Georgia Financial Institutions Business Occupation Tax return Added Form PT-440 - Return of Business License Taxes (county and city level filing) Hawaii Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing Tax Product Enhancements 2012.01000 - Worksheet View 46

Illinois Added Schedule 80/20 - Related-Party Expenses Added Schedule 4255 - Illinois Recapture of Investment Credits Kentucky Added Schedule KESA - Kentucky Environmental Stewardship Act Credit Maine Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld Added Schedule 2P - Pass-through Entity Withholding Listing Added Schedule 3P - List of Exempt Members Added Form 941P-PV-ME - Maine Payment Voucher Michigan - CIT Forms Added Nebraska North Carolina MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for Underpaid Estimated Tax MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule for Financial Institutions MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return MI - Form FTW 4919 Michigan Schedule of Unitary Apportionment for Flow-Through Withholding MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer MI - Form MBT 4947, Michigan Schedule of Certificated Credits MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Financial Filer Added Form 1120XNF Nebraska Amended Financial Institution Tax Return Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative Tax Product Enhancements 2012.01000 - Worksheet View 47

New Hampshire Pennsylvania Wisconsin Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can be automatically included in the combined report are Corporations, S Corporations, and Partnerships. Information for non-designated members that are Fiduciaries or Individuals can also be entered manually. Added Form REV-774 Pennsylvania Assignment of Tax Credit Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit Tax Product Enhancements 2012.01000 - Worksheet View 48

Fiduciary (1041) Product Enhancements - Worksheet View Return to Table of Contents. General > Basic Data > Type of Entity Input fields have been adjusted to enter entity type F to prepare form 1041-QFT, Qualified Funeral Trust. General > Basic Data > Partial grantor trust Input field indicates a Partial Grantor Trust is to be prepared. General > Basic Data > Perpetual care fund Input field has been added to indicate a perpetual care fund. General > Return Options/Miscellaneous Options > Print beneficiary name rather than number on schedule K-1 Input field has been added to print the beneficiary name instead of number on the federal Schedule K-1. Beneficiaries / Distribution Options > Number of gravesites and Income distribution Input fields have been added to indicate the number of gravesites and income distribution for a perpetual care fund. New or Modified Federal Forms Form 1041-QFT, U.S. Income Tax Return for a Qualified Funeral Trust has been added. Form 1041, Perpetual Care Fund modifications have been added to form 1041. Forms Partial Grantor Trust, Statement of Grantor Tax Items and all applicable supporting forms and statements have been added for the grantor portion of a Partial Grantor Trust. New State Forms New Hampshire NH-1041 and all supporting forms and schedules have been added Texas Texas Franchise Tax report and all supporting forms and schedules have been added Tax Product Enhancements 2012.01000 - Worksheet View 49

Exempt (990) Product Enhancements - Worksheet View Return to Table of Contents. There were no changes to Worksheet View. Tax Product Enhancements 2012.01000 - Worksheet View 50

Estate and Gift (706/709) Product Enhancements - Worksheet View Return to Table of Contents. Tennessee Adding TN Form INH 301, Inheritance Tax Return Adding TN Form INH 302, Short Form Inheritance Tax Return Adding TN Form INH 304, Application for Extension of Time to File Estate Tax Return Tax Product Enhancements 2012.01000 - Worksheet View 51

Employee Benefit Plan (5500) Product Enhancements - Worksheet View Return to Table of Contents. Efile Form 8955-SSA Spring 2013 Tax Product Enhancements 2012.01000 - Worksheet View 52

Tax Product Enhancements 2012.01000 - Interview View Individual (1040) Product Enhancements - Interview View Return to Table of Contents. Federal Interview Form 1 and 1A In the 2013 system, fields will be available for taxpayer and spouse first name, middle initial, last name, and suffix. In this year's system, users will have the ability to define those fields manually. The 2012-2013 Pro Forma program will use the manual entries first. If they are not present, logic will be present to make a "best guess". So that the new input could be added in the same area as the existing name input, some fields have been moved from Interview Form 1 to Interview Form 1A. Interview Form IRS 1099-INT A default change has been made to better serve the needs of our users. If tax-exempt interest has been entered in Box 8 of the 1099-INT, it will be considered state taxable. This is the opposite of last year where the interest was considered state nontaxable. The Consolidated Brokerage Statement is unchanged. The user continues to have input fields to explicitly state if federal tax-exempt interest is either state taxable or state nontaxable. Interview Form N-1, Box 33 Enhancements A default change has been made to reduce audit risk. Rather than including guaranteed payments from basis calculation, we will exclude them. Pro Forma will be updated so existing returns will not require a change in the 2012 system. To be consistent with the change above, a default change will occur to include guaranteed payments from at-risk calculations. Tax Equalization - Exclude Interest, Dividends, and Passthrough Income Fields to "exclude from hypothetical calculation" have been added to the following: Interview Form IRS 1099-INT, Box 144 Interview Form IRS 1099-DIV, Box 160 Interview Form CN-1, Box 117 Interview Form CN-2, Box 65 Interview Form IRS K-1 (1041), Box 361 Interview Form IRS K-1 (1065), Box 762 Interview Form IRS K-1 (1120S), Box 740 Note: The Large Partnership Passthrough worksheet will be updated at a later date. Tax Product Enhancements 2012.01000 - Interview View 53

Fields to "exclude resident foreign country income from hypothetical calculation" have been added to the following: Interview Form TE-1, Box 74 Interview Form TE-51, Box 74 Depletion Summary Grids The worksheet view input for depletion properties and depletion production income and expenses has been changed to summary grids. These summary grids allow import, export, and sorting to occur. Property numbers on the Property Production Income and Expense are required for matching purposes. Depreciation Adjustments to Depletion Fields for depreciation and state if different depreciation have been added to Interview Form E-8, Boxes 110 and 119. These give the user more flexibility in defining depreciation related to depletion. Calculation Time Added to Return Summary The second page of the return summary now includes a line to indicate the time that the return was calculated. International ACH Transaction IAT / Diagnostic 21667 In the prior year, Interview Form BNK-1, Box 40 had a checkbox for "International ACH Transaction IAT". This has been changed to a picklist with the following options: Blank (Default) Domestic Account Foreign Account Leaving the question blank would operate as it did in prior years. Diagnostic 21667 would issue and the banking information would carry through the return as a domestic account. Selecting "Domestic Account" would suppress diagnostic 21667 and the banking information would carry through the return as a domestic account. Selecting "Foreign Account" would suppress diagnostic 21667 and the banking information would carry through the return as a foreign account. State diagnostics would issue. Pro Forma will change checked entries in 2011 to foreign accounts in 2012; 2011 blank entries will assume domestic accounts with an accompanying preparer note. Foreign Tax Credit (FTC) Carryback Diagnostics Diagnostics have been added to alert the user that they may need to amend their return to reflect the foreign tax credit carryback. Form 1116. A foreign tax credit carryback has been calculated in the amount of $&$ for the general limitation income category. Foreign tax credit carryovers have been adjusted to reflect the carryback. The prior year return may need to be amended to reflect the foreign tax credit carryback. Tax Product Enhancements 2012.01000 - Interview View 54

Form 1040-ES - Statement for Adjusted Gross Income A statement has been added to provide the user additional detail in regards to Form 1040-ES, Line 1 "Adjusted gross income you expect in 2013". Office Manager - Additional Fields for Form 2848 Office Manager fields will be added per preparer for the following: Designation code Licensing Jurisdiction License/Bar or Enrollment Number Overrides are available on Interview Form S-2, Boxes 95-97 Federal Elections - New Election for Section 1.1367(g) Input has been added for this election. It may be found on Interview Form FE-5, Boxes 60 and 61. Letters/Filing Instructions Letters have been updated to support electronic filing of any state amended returns that may be added. Conservation Expenses Calculation Gross conservation expenses entered on Interview Form F-2, Box 32 will be multiplied by 25% to calculate net conservation expenses. An override for net conservation expenses is available when there is a gain on the sale of farm animals from Schedule D or Form 4797. This override may be found on Interview Form F-2, Box 33. Schedule J - Statement for Elected Farm Income A statement has been added to provide the user additional detail in regards to Schedule J, Line 2a "Elected farm income". This line contains an optimization, and the statement indicates how the program arrives at the final number. 1099-G - Ability to Associate to Schedule F Input has been added to associate a 1099-G to a Schedule F. Agricultural program payments entered on Interview Form IRS 1099-G, Box 67 will flow to Schedule F and/or Form 4835. Form 1116 - Suppress Statements An option has been added to suppress statements associated with Form 1116 and Form 1116AMT. This option is present on Interview Form 5, Box 45. Depreciation - Partial Distribution A partial distribution of an asset may be made through an entry on Interview Form DP-1, Box 291. This box may be used to enter either a percentage or an amount. A value of less than 1 is considered a percentage, while a value of 1 or more is considered an amount. When this field is used, a new asset will be created with applicable information included. Certain input fields for the existing asset will be reduced accordingly. Tax Product Enhancements 2012.01000 - Interview View 55

Once the user makes the entry and attempts to leave the field, they will be alerted that input changes will be made. Also, they will be made aware that the action can only be undone manually. Additional information is available to the user within the partial distribution field's help screen. Depreciation - Diagnostic for ADS Assets Diagnostic 30360 will no longer issue for each farm asset using a method of ADS (alternative depreciation system). Like-Kind Exchanges to Form 2106 Assets attached to Form 2106 / Statement SBE may be a part of a like-kind exchange. Form 8889 - HSA Contributions from W-2 Input Form 8889, Lines 4 and 9 will now reference data entry from IRS W-2 > Box 12 code and amount fields. When a code of "R" is used for employer contributions to an Archer MSA, the amount will be included in the calculation of Form 8889, Line 4. When a code of "W" is used for employer contributions to a HSA, the amount will be included in the calculation of Form 8889, Line 9. Excess Contributions to Coverdell ESAs Input has been added to calculate a penalty for excess contributions to Coverdell ESAs on Interview Form T-7, Boxes 50 through 53. In order to calculate each contributor's limit for the year, the contributor's filing status and modified AGI must be entered. If the amount of contribution made by that contributor exceeds their contribution limit, a penalty is calculated. Additional information is available in the help screens. Shareholder Debt Basis Calculation Input has been added to compute the shareholder's debt basis. This input may be found on Interview Form N-1, Boxes 115 through 134. Page 2 of the S Corporation Basis Worksheet in the government menu indicates how the total shareholder stock and debt basis is calculated. Tax Product Enhancements 2012.01000 - Interview View 56

Input Consistency for 1099 Questions To promote consistency across systems, the 1099 questions changed on Interview Form C-3, Interview Form E-1, and Interview Form F-1. The questions now state: If you made payments during the tax year that would require you to file Form(s) 1099 If you filed, or will file all required Form(s) 1099 A checkmark is a valid entry. California Source Option New options have been added Interview Form K-1, Box 70, Interview Form IRS K-1 (1065), Box 92, Interview Form IRS K-1 (1120S), Box 67, Interview Form IRS K-1 (1041), Box 67. The first two options listed below are new: Amounts in state column are CA all-sources amounts Use state amounts for CA source and CA all-sources Use state amounts for CA source and fed amounts for CA all-sources (default) As the name suggests, these options will only change the California return. A different number for can now be entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts. Interview Form ST-1 Input has been added at the federal level to allow state information to be overridden. Form and Law Changes 1099-INT 1099-DIV The IRS released a new 1099-INT. The state field is now present in Box 11 and the program has been changed to match. This small change may catch some preparers familiar with our system off-guard. The state code is no longer at the top of the form as many users will expect. In addition, the IRS added Box 12 for state ID, and Box 13 for state tax withheld. Input fields were available for this data in the prior year and were moved to match the new 1099-INT. The IRS also released a new 1099-DIV, with the same changes to state, state ID, and state tax withheld. Two new fields have also been added to the 1099-DIV by the IRS: exempt-interest dividends (Box 10) and specified private activity bond interest dividends. 1099-K A new source document was made available by the IRS, the 1099-K. It is available on Interview Form IRS 1099-K. The 1099-K may be associated to a business, farm, or rent / royalty through input. If not tied to any of these places, payments entered here will flow to Form 1040, Line 21. The IRS has indicated that they will not have separate lines on the Schedule C, Schedule F, and Schedule E for "merchant card and third party payments". Amounts will be included in the gross number with a supporting statement. Tax Product Enhancements 2012.01000 - Interview View 57

Checklists For Form 8863 (Education Credits) and Form 8867 (Paid Preparer's Earned Income Credit Checklist), the IRS will be requiring more information to determine eligibility to take certain credits. Input fields will be added as needed. Form 8915-RA Removed Bank Products Form 8915-RA (Qualified Hurricane Retirement Plan Distributions and Repayments) has been removed from the system. Form 8930 (Qualified Disaster Recovery Assistance Retirement Plan Distribution) will remain. No longer supported. Additional Field Information Moved Fields New Fields We attempted to synchronize interview form fields so as to better match the flow of the government form. Interview Form 5 Interview Form 9 A Series CN Series Interview Form 5, Box 45, Form 1116 supporting statements Interview Form 9, Box 70, Homebuyer repayment Interview Form A-2, Box 131, Itemized receipts Interview Form A-5, Box 93, Cash, 50%, 2011 amount Interview Form A-5, Box 99, Cash, 30%, 2011 amount Interview Form A-5, Box 105, Appreciated property, 30%, 2011 amount Interview Form A-5, Box 111, Appreciated property, 20%, 2011 amount Interview Form A-5, Box 117, Conservation real property, 100%, 2011 amount Interview Form A-5, Box 147, Conservation real property, 100%, 2011 AMT amount Interview Form A-5, Box 123, Conservation real property, 50%, 2011 amount Interview Form A-5, Box 154, Conservation real property, 50%, 2011 AMT amount Interview Form A-6, Box 130, Vehicle identification number Interview Form CN-1, Box 43, Recipient foreign country code Interview Form CN-1, Box 41, Recipient foreign province/county Interview Form CN-2, Box 65, Exclude from hypothetical calculation field Interview Form CN-1, Box 117, Exclude from hypothetical calculation field Tax Product Enhancements 2012.01000 - Interview View 58

Interview Form D-10, Box 30, TSJ Note: This replaces the FSO field. DP Series Interview Form DP-2, Box 227, Kansas first year deduction Interview Form DP-2, Box 228, Kansas deduction Interview Form DP-2, Box 229, Date ceased to qualify for Kansas deduction Interview Form DP-9, Box 51, Kansas first year deduction option E Series Interview Form EF-1 Interview Form EF-PDF-1 EXT Series F Series Interview Form FE-5 Interview Form E-5, Box 77, Hypothetical AMT federal passive activity loss carryover Interview Form EF-1, Box 42, Entity number (TX only) allows payment due to be applied to a particular entity Interview Form EF-1, Box 59, State use is available to MI-DTW payment voucher usage Interview Form EF-PDF-1, Box 170, Option to suppress QEPD Interview Form EF-PDF-1, Box 171, Option to suppress 1065 K-1 basis limitation Interview Form EF-PDF-1, Box 172, Option to suppress 1120S K-1 basis limitation Interview Form EF-PDF-1, Box 173, Option to suppress sale of home Interview Form EXT-1, Box 73, State if different Interview Form EXT-1, Box 74, ZIP or postal code if different Interview Form F-2, Box 32, Conservation expenses - gross Interview Form FE-5, Box 60, S Corporation name Interview Form FE-5, Box 61, Employer identification number Interview Form IRS 1099-MISC Interview Form IRS 1099-MISC, Box 55, Recipient foreign country code Interview Form IRS 1099-MISC, Box 56, Recipient foreign province/state/county Interview Form IRS 1099-MISC, Box 115, New York City tax withholding Interview Form IRS 1099-MISC, Box 116, Yonkers tax withholding Interview Form IRS 1099-G Interview Form IRS 1099-G, Box 53, Recipient foreign country code Interview Form IRS 1099-G, Box 54, Recipient foreign province/state/county Tax Product Enhancements 2012.01000 - Interview View 59

Interview Form IRS 1099-K Interview Form IRS 1099-K, All fields Interview Form IRS 1099-INT Interview Form IRS 1099-INT, Box 54, Recipient state Interview Form IRS 1099-INT, Box 55, Recipient ZIP Interview Form IRS 1099-INT, Box 56, Recipient foreign country code Interview Form IRS 1099-INT, Box 57, Recipient foreign province/state/county Interview Form IRS 1099-INT, Box 144, Exclude from hypothetical calculation Interview Form IRS 1099-DIV P Series T Series TE Series Deleted Fields Interview Form 9 Interview Form 17 Interview Form IRS 1099-DIV, Box 54, Recipient state Interview Form IRS 1099-DIV, Box 55, Recipient ZIP Interview Form IRS 1099-DIV, Box 56, Recipient foreign country code Interview Form IRS 1099-DIV, Box 57, Recipient foreign province/state/county Interview Form IRS 1099-DIV, Box 83, Exempt-interest dividends Interview Form IRS 1099-DIV, Box 84, Specified private activity bond interest dividends Interview Form IRS 1099-DIV, Box 160, Exclude from hypothetical calculation Interview Form P-28, Box 60, 2011 windows expense Interview Form P-28, Box 55, 2011 nonbusiness energy credit Interview Form P-6, Box 82, Taxes reclassified under high tax kickout Interview Form T-7, Box 50, Name of contributor Interview Form T-7, Box 51, Filing status of contributor Interview Form T-7, Box 52, Amount of contribution Interview Form T-7, Box 53, Contributor's modified AGI Interview Form TE-1, Box 74, Exclude resident foreign country income from hypothetical calculation Interview Form TE-1, Box 75, Resident foreign country code - override Interview Form TE-51 through Interview Form TE-54, All fields Interview Form 9, Box 69, Advance earned income credit Interview Form 9, Box 71, Form 5405, Line 16 Interview Form 17, Box 50, Bank product use and disclosure option Tax Product Enhancements 2012.01000 - Interview View 60

Interview Form 26 A Series C Series D Series Interview Form 26, Box 137, 8938 code Interview Form 26, Box 138, 8938 name Interview Form A-10, Box 85, Business miles after 6/30 Not small business Interview Form C-3, Box 83, 1099 blank Interview Form C-1, Box 68, Gross amount of merchant card / third party network payments reported on Form 1099-K Interview Form C-3, Box 80, 8938 code Interview Form C-3, Box 81, 8938 name Interview Form D-7, Box 43, 8938 code Interview Form D-7, Box 44, 8938 entity Interview Form D-10, Box 42, FSO Note: This was replaced by the TSJ field. DP Series E Series EF Series Interview Form DP-3, Box 107, Total business miles after 6/30 Interview Form DP-5, Box 36, Type Interview Form DP-5, Box 52, Carryover of disallowed deduction from last year for real property Interview Form E-1, Box 53, Merchant card and third party payments - rent Interview Form E-1, Box 54, Merchant card and third party payments - royalty Interview Form E-1, Box 55, Cash back Interview Form E-1, Box 56, Leave 1099 questions blank Interview Form E-2, Box 41, 8938 code Interview Form E-2, Box 42, 8938 name Interview Form EF-3, Box 30, Bank product will be applied for with River City Bank for this return Interview Form EF-3, Box 31, Bank product application also applies to the home state return Interview Form EF-3, Box 32, Confirm that you have received the proper consent for disclosure of taxpayer information to the bank Tax Product Enhancements 2012.01000 - Interview View 61

EXP Series Interview Form EXP-1, Box 106, 8938 code Interview Form EXP-3, Box 107, 8938 name F Series Interview Form F-1, Box 53, Leave 1099 questions blank Interview Form F-3, Box 64, 8938 code Interview Form F-3, Box 65, 8938 name IRS K Series Interview Form IRS K-1 (1041), Box 68, Small business code M Series Interview Form M-23, Box 78, Basis in rollovers from qualified retirement plans for prior years Interview Form M-23, Box 79, Amount from 2010 Form 8606, Line 20a Interview Form M-23, Box 81, Amount from 2010 Form 8606, Line 25a for rollovers to Roth IRAs Interview Form M-23, Box 83, Basis in Roth IRA conversions prior to 2010 Interview Form M-23, Box 76, Populate Part III if no distributions from Roth IRA field Interview Form M-23, Box 90, Amount of distribution allocable to in-plan Roth rollover within 5 year of rollover Interview Form M-23, Box 91, Amount from 2010 designated Roth Account Income Acceleration Interview Form M-23, Box 92, Amount from 2010 Form 8606, Line 25a for an in-plan rollover to Roth account Interview Form M-22, Box 57, Populate Part IV if no distribution Interview Form M-26, All fields P Series Interview Form P-12, Box 101, Foreign country Interview Form P-12, Box 102, Foreign province / county Interview Form P-21, Box 140, Small business code Interview Form P-31, Box 44, Small business code Interview Form P-31, Box 57, Small business code Interview Form P-31, Box 67, Small business code Interview Form P-32, Box 170, Small business code STMT Series Interview Form STMT-1, Box 88, Making work pay for taxpayer Interview Form STMT-1, Box 89, Making work pay for spouse Interview STMT-4, Boxes 30 through 41, All fields Interview STMT-4, Boxes 45 through 68, All fields Tax Product Enhancements 2012.01000 - Interview View 62

T Series Interview Form T-20, Box 130, E-file Pro Forma Interview Form T-20, Box 131, E-file explanation for unreported tip income Efile 1040 90-22.1 Mandated starting July 2013. Expected delivery Spring 2013 State efile Electronic filing of returns: adding TX Electronic filing of amended returns: NY only Electronic filing of estimates: KS Electronic filing of extensions: adding KS, MD, TX State Nonresident and Part Year State Overrides Interview Form ST-1 Alabama California Delaware A new feature allows the prorating of income between states based on percentages entered. A single, global percent can be used, or each income item can be prorated based on percent or amount. The percent/amount is applied to the total per income item, not to the underlying detail. Limitations: Not all states follow the Federal return to the letter Not all states allow efile without the detail available Added foreign employer address overrides to Interview Form AL1, Box 56-58 and 64-66 New donations to Interview Form AL2, Box 72-73 New options have been added to Interview Form K-1, Box 70, and Interview Form IRS K-1 (1065), Box 92, Interview Form IRS K-1 (1120S), Box 67, Interview Form IRS K-1 (1041), Box 67. The first two options listed below are new: Amounts in state column are CA all-sources amounts Use state amounts for CA source and CA all-sources Use state amounts for CA source and fed amounts for CA all-sources (default) As the name suggests, these options will only change the California return. A different number for can now be entered for federal, state all-source, and CA source income (loss) on the same entity. The default for all-source changed to use federal amounts. Form CA 568 now allows suppression of Schedule A/B and Schedule K. New boxes have been added to Interview Form CA26, Boxes 92 and 93. Added interactive diagnostic functionality Tax Product Enhancements 2012.01000 - Interview View 63

Hawaii Indiana Added Form HI N-109, PG1 and PG2. This is for the carryforward and carryback of a Hawaii NOL. Input is on Interview Form HI-16 MeF (modernized electronic filing) is available for 2012 returns. Schedule TCSP-40, Twenty-First Century Scholars Program Credit Renter s Deduction input modified to allow separate input boxes on Interview Form IN3, Boxes 67-69, 71-73, 78-80, and 82-84. Interview Form IN4, Boxes 70-72, Homeschool Deduction Interview Form IN11, Boxes 64-117, Domestic production activities field through Certain trade or business deductions based on employment of unauthorized alien field Interview Form IN11, Boxes 144-149, National Guard and reserve component member s deduction field through Nonresident military spouse earned income deduction field Kansas Electronic filing of estimated taxes and extension payments only if direct debit input is present. Not allowed in batch electronic filing. Form K-64, Business and Job Development Credit removed due to expiration. Form K-89, Rural Opportunity Zone Credit (e-filing only) added. Schedule K-120EX, Expensing Deduction. A one-time deduction is available to Kansas businesses including sole proprietors for machinery and equipment purchased in the year that it is placed in service in Kansas. The expensing deduction must qualify with the IRS under IRC Section 168: Accelerated cost recovery system. Form K-40, Line 39 Kansas Hometown Heroes fund: All contributions are used solely for the purpose of advocating and assisting Kansas Veterans, dependents and survivors ensuring they receive all federal and state benefits they have earned. Enter on Line 39 the amount you wish to contribute to this fund (must be $1 or more). Massachusetts Michigan Installed the ability to have multiple entities of Form M-1310 "Statement to Claimant of Refund" tied to the federal occurrence number on Interview Form MA20, Box 33. Form MI-4884, Pension Schedule Form MI-4973, Pension Continuation Schedule Interview Form MI2, Box 84, Special Olympics field Interview Form MI3, Box 71, Gifts or expenses paid on your behalf field Interview Form MI4, Box 47, Taxable value of homestead includes unoccupied farmland classified as agricultural field Interview Form MI8, Box 76, Domestic production activities deduction field Interview Form MI12, Boxes 49, 53, 55, 57, and 70, Additional Email Address, Additional Telephone Number, Additional Fax Number, Additional Contact Name, and Grant unlimited authorization fields Interview Form MI13, Box 67, Small business investment tax credit field Tax Product Enhancements 2012.01000 - Interview View 64

Michigan Michigan Cities Missouri Montana Nebraska New input for additional electronic filing information for W-2 s on Interview Form DTW9. New input for Partnership or S Corporation taxes paid on Interview Form DTW4 New checkbox for amounts Carried Forward for Miscellaneous Tax credits on Interview Form MO8, Box 43. Adding Form MO-NJD Small Business Deduction for New Jobs. New input on Interview Form MT1, Box 42 for check box for main form to not discuss return with your spouse New Hampshire New Jersey Add NR/PY Schedule E state source statement Added interactive diagnostic functionality Letters and Return Summary now produce for NH SMLLC returns New input on Business Tax Returns Interview Form NH1, Boxes 90-92 New input on Single Member LLC Interview Form NH11, Boxes 90-92 There are 3 new contribution codes allowed on Interview Form NJ1, Box 37 Created output forms for the NJK1P/NJK1S that were previously only for electronic filing purposes. The forms only print with the accountant copy of the return. The 2D barcode is now mandatory, with more forms impacted. New York Electronic Filing New Mexico North Carolina MeF is available for 2012 PIT returns. New Mexico has added 3 new credits for 2012 on Interview Form NM8, Boxes 57, 74, 75 MeF is available for 2012 returns. Form NC-478A is now obsolete and has been removed. Ohio Ohio Cities Toledo. A primary source of income can be selected. Aggregate losses from income sources other than the primary source will be suspended. This option is activated by entering a code on Interview Form OHC7, Box 63. Valid entries are: W - Wage, S - Self-employment, E - Rental, M - Miscellaneous. Suspended losses from prior years may also be entered Interview Form OHC7, Boxes 80-85. Tax Product Enhancements 2012.01000 - Interview View 65

Oklahoma Oregon Pennsylvania All Cities. Credit for taxes paid overrides are now provided on Interview Form OHC8, Boxes 50, 60-64. These overrides allow the preparer to override the amounts used in credit calculation on a per city basis. An option has also been added to limit the credit to the amount of withholding and direct payments if less than the calculated tax. Suspended losses may be entered on Interview Form OHC9, Boxes 90-93 on a per entity basis. Oklahoma has added 6 new contributions this year on Interview Form OK3, Boxes 74-79 Multnomah has mandated 2D barcodes for 2012. Oregon has added direct deposit for its 529 College Savings Plan on Interview Form OR1, Boxes 85-92. Added new Form PA 40-X on Interview Form PA-25 Add ability to electronically file the spouse version Pennsylvania Cities (PGH obsolete) In accordance with PA Act 32, the Pittsburgh City/School District and Mount Oliver individual earned income tax returns are prepared using the Pennsylvania Cities product; there is no longer a separate product for Pittsburgh available through ProSystem fx for 2012. Pertinent information entered through the 2011 Pittsburgh product will pro forma/roll forward into the 2012 Pennsylvania Cities product as a result. Utah Interview Form UT3, Box 36: Added input for gold and silver coin sale credit. Interview Form UT4, Box 43: Added input for veteran employment tax credit. West Virginia Schedule H, Certification of Permanent and Total Disability input modified to allow separate input boxes for the Physician s address, city, state, and ZIP code on Interview Form WV1, Boxes 88-91. Tax Product Enhancements 2012.01000 - Interview View 66

Partnership (1065) Product Enhancements - Interview View Return to Table of Contents. Schedule K-1, Federal and State Schedule K-1 s are now overrideable from Worksheet input K-1 s at the Federal and State level can be overridden on Worksheet Federal > Partners > Federal/State Schedule K-1 Overrides. This new summary grid allows the user to import from an excel spreadsheet for more efficient entry of Schedule K-1 partner data. Schedule K-1, Option to Print Partner s Name Instead of Partner Number on Top of the Federal Schedule K-1 Input is now available, to request the partner name to print on top of the Schedule K-1 instead of the partner number on Interview Form 2, Box 47 (Worksheet Federal > General > Return Options > Processing Options > X to print partner name rather than number on Schedule K-1). Schedule K, Option to create Schedule K based upon Schedule K-1 overrides An option is available to complete Federal Schedule K with the Schedule K-1 override entries. Use Worksheet Federal > Partners > General Options > Schedule K-1 Print Options > Calculate reverse Schedule K from K-1 override. Schedule K-1 Multiple Activity, Schedule of Activities Alternative A new summary grid is available to import activity information for Schedule K-1 support from Excel. Use Worksheet Federal > Partners > Federal/CA Alternative K-1 Activity Schedule Import. Passthrough Activities, An Export Summary Grid is added for Passthrough Activity Data An export summary grid is now available to provide a spreadsheet to move passthrough activity level data to the following systems: 1040, 1041. Passthrough, IRS K-1 Input Format A new input method is added for passthrough. The IRS K-1 format is available on Interview Form IRS K1P (Worksheet Federal > Income/Deductions > Partnership Passthrough) and IRS K1F (Worksheet Federal > Income/Deductions > Fiduciary Passthrough). Alternative Method for Entering Federal Special Allocations in Worksheet View Depletion New worksheets are available to enter Special Allocations for Federal allocable items. These worksheets use the allocable item description as opposed to the allocation codes. This method of allocation is available in Worksheet Federal > Partners. Summary grids are available for Property, Well and Depreciation on Worksheet Federal > Income/Deductions > Depletion > Property and Cost Depletion; Property Production Income and Expenses; Depletion Property/ Overhead Depreciation and Amortization. Tax Product Enhancements 2012.01000 - Interview View 67

Depletion, Depreciation Adjustment Well level depreciation may be adjusted on Interview Form E-2, Boxes 130 and 139 (Worksheet Federal > Income/Deductions > Depletion > Property Production Income and Expenses > Depreciation; Depreciation State (if different). Depletion, Option to Produce an Alternative Depletion Schedule that uses a Property ID Code Instead of a Property Description Depletion An option is available to produce the Schedule of Mineral Interests Summary using the Property ID Code instead of the Property description on Interview Form E-2, Box 109 along with Interview Form 2, Box 45 (Worksheet Federal > Income/Deductions > Depletion > Property and Cost Depletion > Property ID Code along with Worksheet Federal > General > Return Options > Processing Options > Option to Suppress Depletion Schedules). The partial barrel calculation is added which allows marginal barrels to be taken first. Depletion Property Summary Grid Export Partner Basis A grid is added to the Export tab for depletion. This data will be a summary of the property information. It will populate with the data from the Schedule of Mineral Interest Properties. It can be exported to an Excel spreadsheet. New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-1, Boxes 36 and 110 (Worksheet Federal > Partners > Partner Basis > Partner Basis Options > Include reduction of liabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Include reduction of liabilities in adjusted basis) for the Partner Basis Worksheet. New input is available to include reduction in liabilities in adjusted basis on Interview Form PB-3, Boxes 37 and 113 (Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Options > Include AMT reduction of liabilities in adjusted basis and Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Information > Include AMT reduction of liabilities in adjusted basis) for the AMT Partner Basis Worksheet. New input is available for loans to partners on Interview Form PB-1, Box 111 (Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Loan to partner) for the Partner Basis Worksheet. New input is available for loans to partner on Interview Form PB-3, Box 114 (Worksheet Federal > Partners > Partner Basis > AMT Partner Basis Information > Loan to partner) for the AMT Partner Basis Worksheet. New input is available for loans from partner on Interview Form PB-1, Box 112 (Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Loan from partner) for the Partner Basis Worksheet. New input is available for loans from partner on Interview Form PB-3, Box 115 (Worksheet Federal > Partners > Partner Basis > Partner Basis Information > Loan from partner) for the AMT Partner Basis Worksheet. Tax Product Enhancements 2012.01000 - Interview View 68

Form 2848 - Power of Attorney and Declaration of Representative/Form 8821, Tax Information Authorization Office Manager now contains fields for designation code, licensing jurisdiction, and license/bar or enrollment number. Overrides are available on Interview Form O-12, Boxes 110 through 112 (Worksheet Federal > Other > 2848 Power of Attorney > Representative(s)/Appointee Individuals). Form 2848 is now prepared from entries on Interview Form O-12. Form 8821 is now prepared from entries on Interview Form O-12A. Form 8949, Sales and Other Dispositions of Capital Assets Added and available for processing. Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships State Returns Form 8865 may now be prepared in one return, and accessed and filed from other returns. This feature applies to the Individual, Partnership, Corporation, S Corporation, and Exempt Organization systems. In addition, a Form 8865 version of the following forms is prepared: Form 3468, Form 4562, Form 4797, Form 8825, and Schedule F. State Schedule K-1 Overrides State level Schedule K-1s may be overridden on Worksheet Federal > Partners > Federal/State Schedule K-1 Overrides. State Schedule K-1 Overrides Reconciliation A reconciliation of any State Schedule K-1 overrides entered is produced to tie the override numbers to the state Schedule K-1. Estimate Reminder Letters Added for States and Cities that have Estimates Estimate reminder letters for states and cities may be requested on Interview Form 9, Box 40 (Worksheet Federal > General > Letters and Filing Instructions > General Letter Information > Estimate reminder letter). The Office Manager > Print option is also available. State K-1 Export to 1040 is expanded to Arizona, Iowa, Nebraska, North Dakota, and Utah Common State Tab in Worksheet is Expanded for Adjustments to Federal Income and Schedule K Overrides Arizona Worksheet Federal > Common State Form 338, Credit for Investment in Qualified Small Businesses is added and available for processing. Tax Product Enhancements 2012.01000 - Interview View 69

California Form 592, Partner/Member information is now in a summary grid format for Worksheet input. Schedule K-1 Multiple Activity, Schedule of Activities Alternative. A new summary grid is available to import activity information for Schedule K-1 (565) support from Excel. Use Worksheet Federal > Partners > Federal/CA Alternative K-1 Activity Schedule Import. Illinois Indiana Maine Electronic filing is available. Form WH-18, Information is now in a summary grid format for Worksheet input. Form 1065ME and Schedule PSI are obsolete. New Forms 941P-ME and 941P-PV-ME are used for partnership returns this year. Maryland Schedule K-1 from a Passthrough, Input is added for a Maryland partnership that had taxes paid on their behalf from a passthrough to be able to include the K-1 from that passthrough in the electronic file. Use Interview Forms MD16 and MD17 (Worksheet Maryland > General > Schedule K-1 Information from Passthrough, Electronic Filing). New Hampshire Pennsylvania Rhode Island Tennessee Combined Group Processing is available. Form REV-774, Assignment of Tax Credit is added and prepared from entries on Interview Form PA20 (Worksheet Pennsylvania > Corporate Tax Report > General > Assignment of Tax Credits). Form RI 1096V, Passthrough Withholding Payment Voucher is added and is available for payment of passthrough withholding. Form FAE 170, Schedule G is now completed when the Federal 1065 Schedule L is not required. Tax Product Enhancements 2012.01000 - Interview View 70

Corporation (1120) Product Enhancements - Interview View Return to Table of Contents. Federal Schedule M-3 (Form 1120) Form 1118 Form 1120-F Form 4626 Form 5452 Form 6765 Form 8810 Form 8827 55 new interactive Schedule M-3 diagnostics have been added. Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line. Interest and dividends now can be automatically carried to Form 1118 based on detail entries on Income/Deductions > Interest or Dividend (Interview Forms B-1 and B-2.) Form 1118 will be automatically created from these entries for income category N (Passive income) and A (General income). Schedule W on page 7 has been added to support the computation of overpayment resulting from tax deducted and withheld under Chapter 3 on Line 8b, page 1. Statement of AMT Domestic Production Activities Deduction (DPAD) Adjustment will be produced to support the AMTDPAD adjustment included in Line 2o. The detailed statement will be produced to support Line 4d for net positive ACE adjustment from prior years. A new worksheet for figuring current year earnings and profits has been added. A new election has been added where you can elect to not reduce the R&D credit and also to not carry the credit to other deductions on page 1 of the return. A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list each member of the specified aggregate group. You can now enter year by year prior year minimum tax carryover detail on Credits > 8827 > Prior Year Minimum Tax Carryover (Interview Form A-5) with type M. Section 382 limitation capability also has been added. We refer to the prior year carryover entered in the Alternative minimum tax from prior year Form 4626 and Minimum tax credit carryforward fields as summary entries. When either one of these summary entries and new carryover detail entries are present, the summary entries will override Lines 1 and 2 of Form 8827 and detail entries will not carry to Lines 1 and 2 but will always carry to Lines 8a and 8b. Whenever detailed entries are present, Detailed Carryover Report to Next Year will always be produced. Tax Product Enhancements 2012.01000 - Interview View 71

Form 8858 A new Import/Export capability has been added for this form. Controlled Group Credit Summary This summary form has been added for the credits that can be allocated between controlled group members. The allocated credits carry automatically from Summary form to the appropriate credit forms. Tax Balance Summary This form is designed to be a one glance check to insure major balances and tie-ins are in agreement. The Tax Balance Summary will only print in the accountant s copy. New State Adjustment Category Added to Worksheet View This new category allows access to every state s adjustment without navigating to each individual state. It is accessed from federal level. There is no extra or less input data than the existing ones at the state level. If data is entered here, state menu will also highlight. Return Type Error Message for Incomplete Input NOL Carryover Non-1120 (1120-PC, 1120-L etc) returns require two entries to generate. The first entry is the return code on General > Basic (Interview Form 1) and the second one is the mandatory entry on the worksheet or interview form specific to that return type. If an entry is made on General > Basic (Interview Form 1) and no corresponding second entry is on the return specific interview form, an error message will now be generated. 2012 will be the first year the 20 year NOL carryover period will have an affect on the program. In the past, 1997 NOL would exceed the old 15 year carryover period and the program would have ignored it. For NOL originating in a tax year beginning after August 5, 1997 can be carried over 20 years. Calculation History State Codes 1099 Questions A new Calculation History report is informational that shows the results of the prior two calculations of the tax return. It is located on the federal menu following Form 1120. Input for State codes has been changed to display only US states plus XX and FC. Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data > Miscellaneous Information (Interview Form 4). Note that this input has been standardized across all systems and both questions are handled in the same way in every system. Schedule M-3 Option A new option to leave Schedule M-3 and Schedule B blank when the corporation is a member of a consolidated return is available at Sch L/M > General and Net Income (Loss) Reconciliation (Interview Form 4). This option applies to Forms 1120, 1120-PC and 1120-L. Tax Product Enhancements 2012.01000 - Interview View 72

Suppress Statements Mailsheets A new section Suppress Printing of Statements has been added to General > Return Options (Interview Form 4). You can now selectively suppress various statements from printing in return. Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheets addresses. NOL and Carryovers Depreciation You can now enter the detailed foreign tax credit carryover information with type F for regular tax and type FA for alternative minimum tax. The carryover amount will carry to Form 1118, page 2, Schedule B, part II, Line 5. You can now enter year by year prior year minimum tax carryover detail with type M. You can now enter year by year net positive ACE adjustments from prior years with type AC. You can now enter multiple section 382 limits for NOL and AMT NOL carryover. Previously it was limited to just one section 382 limitation. Section 382 limit also is expanded to General Business Credit and Credit for Prior Year Minimum Tax. The multiple section 382 carryovers will be grouped as one on the Carryover Data to Next Year report. This new input is on (Federal > Alternative Minimum Tax > Net Positive Ace Adjustment from Prior Years (Interview Form 5). New code 19 for Mark-to-Market has been added for Schedule M-3 purposes. New column for Partial Disposition has been added. Input field Suppress automatic book adjustment has been added. When this option is present, we assume tax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustment for depreciation will be made. Rents New column for X if Direct Expense has been added. Royalty Extensions Input fields for X to exclude from quantity limit, Property ID code, Depreciation, and Depreciation - state if different have been added. Foreign Returns New input field Extension message to print at the top of extension form has been added. Input for attaching Form 8858 to Forms 1120, 5471 and 8865 has been condensed into one set of forms. Use Foreign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 to another return type. Tax Product Enhancements 2012.01000 - Interview View 73

8865 Crossover functionality As a new feature for 2012, you can prepare 8865 in one return and then access and file those from another return. Also from one return you could access Forms 8865 from many other returns, using your current return as a master or combined return for e-file or paper filing purposes. A Form 8865 prepared this way is called a crossover 8865. A return accesses the Forms 8865 in another return by using Interview form FOR-CC, or Worksheet view 8865 Automated Feature Worksheet under Foreign menu. You can use this feature across 5 systems such as Partnership, S Corporation, Corporation, Individual and Exempt Organization. The capability to send a 8865 from one system to another and file it, include both automated (See Partnership level help for additional information, automated 8865 is reference to 8865 generated automatically out of a partnership return using 1065 calculations, this is also new for 2012) and non-automated 8865, We will call the top unit (filing entity) as 8865 reporting entity. New for 2012, additional 8865 level forms we included this year are 4797, 8825, 4562, Sch F and 3468, these are 8865 versions of corresponding return level forms. IRS Schedule K-1 Facsimilie View Forms General State Foreign New Worksheets and Interview forms are available for IRS K-1 facsimilies. Enter information on these IRS K-1 interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. These forms are new K-1 format for passthroughs and in addition to older format. New columns have been added for K-1 Reconciliation Print Code and X NOT to Pro Forma. Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have been added to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC). 2 Year Comparison Form 6252 We will now display the Effective and Marginal tax rates for current and prior year. We will now calculate and display cumulative totals for all columns on 6252, page 2. New Insurance Election You can select to print the Section 831(b) election in Insurance > 1120-PC > Taxable Income Under Section 834 (Interview Form PC-3). Return Summary The second page of the return summary now includes a line to indicate the time the return was calculated. Tax Product Enhancements 2012.01000 - Interview View 74

Consolidated/Combined Returns Consolidated Tax Balance Summary A new workflow tool where you can see separate companies out of balance which causes the consolidated return to be out of balance. You can view each member company s tax balance summary from the consolidated return. You also can quickly identify if one member company is filing a Schedule M-1 when Schedule M-3 is required at the consolidated level. Consolidated Option Accumulate Prior Year AMT Credit Carryover Detail This new option has been added to Consolidated > Options (Interview Form CC-1). Detailed carryover entries are not automatically accumulated for consolidated returns. It must be requested on Consolidated > Options (Interview Form CC-1). We refer to the prior year carryover entered in the Alternative minimum tax from prior year Form 4626 and Minimum tax credit carryforward fields on Credits > 8827-Credit Prior Year Minimum Tax (Interview Form P-1A) as summary entries. The summary entries will never be accumulated. Summary entries at the consolidated level will suppress accumulation of the detailed entries even if this option is present. Consolidated Treatment for Net Positive ACE Adjustment from Prior Years Detailed carryover entries are not automatically accumulated for consolidated returns. It must be requested on Consolidated > Options (Interview Form CC-1). Prior year positive ACE adjustment should be on a consolidated basis, not separate company. The Net positive ACE adjustment from prior years override field on Taxes > Alternative Minimum Tax > Adjustments, Preferences and Other Items (Interview Form T-3) at the consolidated level will suppress accumulation of the detailed entries if this option is present. Option to Suppress Automatic Book Adjustment on General > Depr and Depl Options and O/R (Interview Form DP-9) This option is not applicable at the consolidated level. New Consolidated Statement Format Consolidated and Combined Statements have been merged into one workpaper. The new format simplifies the review. It applies to the 1120 federal system only. New Level 1 Diagnostics 12 new level 1 diagnostics have been added to alert the preparer of an out of balance condition in a separate company return that could throw the consolidated return out of balance. Three new level 1 diagnostics have been added to alert the preparer of separate company asset numbers on Interview Forms DP-2, DP-3 and DP-4 that do not have matching DP- 1 numbers (Interview only). Centralized Federal and State Consolidated Help This help can be accessed from form level help on Consolidated > Membership Information (Interview Form CC-1). All state consolidated help can be viewed in one area. Consolidated Option Suppress Automatic Depreciation Adjustment Options No change to original Option X on Consolidated > Options (Interview Form CC-1). Option 1 is the new option. If Option X is used, the depreciation reported in consolidated taxable income is the amount reported for each separate company s taxable income, not the amount reported on Tax Product Enhancements 2012.01000 - Interview View 75

its Form 4562. No adjustments are made. If Option 1 is used, we will use the depreciation computed for each asset at the separate company level, not the separate company depreciation deduction reported in its taxable income. We will base depreciation on the consolidated Form 4562, not the combined depreciation deduction. Automatic adjustment may still occur. Consolidated Option Carryover Statement Option (Division/DRE Only) Options 1 and 2 are new. You can now attribute all the current year loss to the parent only. Consolidated Option Treat Disregarded Entities as Taxable Entities This option on Consolidated > Options (Interview Form CC-1) will allow you to treat any Divisions or Disregarded Entities (DRE s) as taxable entities on the consolidated return. If this option is used, the Code for Consolidated return field on General > Basic Data (Interview Form 1) should not contain Division/DRE (the code V ) When this option is used, this return should not be filed for federal or state tax purpose. Consolidated Options for Accumulated Totals Only Depreciation A new Option 1 Do NOT recompute total depreciation has been added to Consolidated > Options (Interview Form CC-1). Consolidated Form 5472 Accumulation Options The new option Accumulate Form 5472 and use separate company name as reporting entity has been added to Consolidated > Options (Interview Form CC-1). This option is used to accumulate separate company name to print on Form 5472 instead of printing the consolidated name, address and FEIN. Consolidated Form 8865 Accumulation Options New option Accumulate Form 8865. In consolidated returns, 8865 will accumulate from separate companies. These options have been added as: Interview Forms: CC-1 box 146; Worksheet View: Consolidated > Options > Accumulate 8865. Consolidated Statement Allocation of Current Consolidated Capital Loss to Member Corporations This option has been changed to allocate current consolidated capital loss to members without regard to section 1231 gain. Only members with current capital loss should be allocated a consolidated capital loss. Option Print Form 8916-A for a Mixed Group State This new option has been added to Consolidated > Mixed Groups > Life/Non-Life Mixed Group (Interview Form CCLNL-1). Use this option to produce a consolidated version of Form 8916-A for a Mixed Group. Alaska Added Form AK 6300 Incentive Credits Added Form AK 6310 Education Credits Tax Product Enhancements 2012.01000 - Interview View 76

Arizona Connecticut Added - Schedule ACS Arizona Air Carrier Apportionment Added Form CT-120 TCE - Connecticut Tax Credit Cap District of Columbia Georgia Added DC Unitary Combined Tax Return Added Form 900 - Georgia Financial Institutions Business Occupation Tax return Added Form PT-440 - Return of Business License Taxes (county and city level filing) Hawaii Illinois Added Form F-1, Hawaii Franchise Tax Return Added Form Form FP-1 - Hawaii Franchise Tax or Public Service Company Tax Install Payment Voucher Added Form N-755 - Hawaii Application for Automatic Extension of Time to file Hawaii Franchise Tax Return Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing Added Schedule 80/20 - Related-Party Expenses Added Schedule 4255 - Illinois Recapture of Investment Credits Kentucky Added Schedule KESA - Kentucky Environmental Stewardship Act Credit Maine Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld Added Schedule 2P - Pass-through Entity Withholding Listing Added Schedule 3P - List of Exempt Members Added Form 941P-PV-ME - Maine Payment Voucher Michigan - CIT Forms Added MI - Form CIT 4891, Michigan Corporate Income Tax Annual Return MI - Form CIT 4892, Michigan Corporate Income Tax Amended Return MI - Form CIT 4893, Michigan Corporate Income Tax Small Business Alternative Credit MI - Form CIT 4894, Michigan Corporate Income Tax Schedule of Shareholders and Officers MI - Form CIT 4895, Michigan Corporate Income Tax Loss Adjustment for the Small Business Alternative Credit Tax Product Enhancements 2012.01000 - Interview View 77

Missouri Nebraska MI - Form CIT 4896, Michigan Corporate Income Tax Unitary Business Group Affiliates Excluded from the Return of Standard Taxpayers MI - Form CIT 4897, Michigan Corporate Income Tax Data on Unitary Business Group Members MI - Form CIT 4898, Michigan Corporate Income Tax: Non-Unitary Relationships with Flow- Through Entities MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for Underpaid Estimated Tax MI - Form CIT 4900, Michigan Corporate Income Tax: Unitary Relationships with Flow-Through Entities MI - Form CIT 4901, Michigan Corporate Income Tax E-File Annual Return Payment Voucher MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits MI - Form CIT 4903, Michigan Corporate Income Tax Withholding Opt-Out Schedule MI - Form CIT 4905, Michigan Insurance Company Return for Corporate Income and Retaliatory Taxes MI - Form CIT 4906, Michigan Insurance Company Amended Return for Corporate Income and Retaliatory Taxes MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule for Financial Institutions MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return MI - Form FTW 4919, Michigan Schedule of Unitary Apportionment for Flow-Through Withholding MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer MI - Form MBT 4947, Michigan Schedule of Certificated Credits MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding MI - Form MBT 4974, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Insurance Filer MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Financial Filer Added Schedule NO-NJD, Missouri Small Business Deduction Added Form 1120NF - Nebraska Financial Institution Tax Return Added Form NFC - Statement of Nebraska Financial Institution Tax Credit Added Form 1120XNF Nebraska Amended Nebraska Financial Institution Tax Return Tax Product Enhancements 2012.01000 - Interview View 78

North Carolina New Hampshire Pennsylvania South Carolina Virginia Wisconsin Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can be automatically included in the combined report are Corporations, S Corporations, and Partnerships. Information for non-designated members that are Fiduciaries or Individuals can also be entered manually. Added Form REV-774 Pennsylvania Assignment of Tax Credit Added Form 1101B - Bank Return Tax Return Added Form 1104 - Savings and Loan Association Tax Return Added Schedule 500AB - Virginia Schedule of Related Entity Add Backs and Exceptions Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit Tax Product Enhancements 2012.01000 - Interview View 79

S Corporation (1120S) Product Enhancements - Interview View Return to Table of Contents. Federal Schedule M-3 (Form 1120) Form 5452 Form 6765 Form 8810 Form 8858 55 new interactive Schedule M-3 diagnostics have been added. Whenever a line on Schedule M-3 does not cross foot, a diagnostic will be issued to identify the line. New Worksheet for Figuring Current Year Earnings and Profits has been added. A new election has been added where you can elect to not reduce the R&D credit and also to not carry the credit to other deductions on page 1 of the return. A new Statement of Disclosure of Activity Grouping has been added. The Disclosure Statement will list each member of the specified aggregate group. A new Import/Export capability has been added for this form. Controlled Group Credit Summary This summary form has been added for the credits that can be allocated between controlled group members. The allocated credits carry automatically from Summary form to the appropriate credit forms. Calculation History A new worksheet that will display the calculated amounts for all income and deduction items for the past 4 return calculations. New State Adjustment Category Added to Worksheet View This new category allows access to every state s adjustment without navigating to each individual state. It is accessed from federal level. There is no extra or less input data than the existing ones at the state level. If data is entered here, state menu will also highlight. Calculation History State Codes A new Calculation History report is informational that shows the results of the prior two calculations of the tax return. It is located on the federal menu following Form 1120. Input for State codes has been changed to display only US states plus XX and FC. Tax Product Enhancements 2012.01000 - Interview View 80

1099 Questions Input to answer the questions about 1099 filings has been changed to X boxes on General > Basic Data > Miscellaneous Information (Interview Form 4). Note that this input has been standardize across all systems and both questions are handled in the same way in every system. Suppress Statements Mailsheets Schedule K-1 Depreciation A new section Suppress Printing of Statements has been added to General > Return Options (Interview Form 4). You can now selectively suppress various statements from printing in return. Input is available on General > Return Options (Interview Form 9A) to enter overrides for mailing sheets addresses. A new option is available in General > Return Options > Processing Options (Interview Form 2) to print the shareholder name (rather than number) at the top of each schedule K-1. New code 19 for Mark-to-Market has been added for Schedule M-3 purposes. New column for Partial Disposition has been added. Input field Suppress automatic book adjustment has been added. When this option is present, we assume tax and book depreciation are equal. No automatic Schedule M-1 or M-3 adjustment for depreciation will be made. Rents New column for X if Direct Expense has been added. Royalty Extensions Input fields for X to exclude from quantity limit, Property ID code, Depreciation, and Depreciation - state if different have been added. Foreign Returns New input field Extension message to print at the top of extension form has been added. Input for attaching Form 8858 to Forms 1120, 5471 and 8865 have been condensed into one set of forms. Use Foreign > 8858 (Interview Forms FDRE Series) to enter input in one place for attaching Form 8858 to another return type. 8865 Crossover functionality As a new feature for 2012, you can prepare 8865 in one return and then access and file those from another return. Also from one return you could access Forms 8865 from many other returns, using your current return as a master or combined return for e-file or paper filing purposes. A Form 8865 prepared this way is called a crossover 8865. Tax Product Enhancements 2012.01000 - Interview View 81

A return accesses the Forms 8865 in another return by using Interview form FOR-CC, or Worksheet view 8865 Automated Feature Worksheet under Foreign menu. You can use this feature across 5 systems such as Partnership, S Corporation, Corporation, Individual and Exempt Organization. The capability to send a 8865 from one system to another and file it, include both automated ( See Partnership level help for additional information, automated 8865 is reference to 8865 generated automatically out of a partnership return using 1065 calculations, this is also new for 2012) and non-automated 8865, We will call the top unit (filing entity) as 8865 reporting entity. New for 2012, additional 8865 level forms we included this year are 4797, 8825, 4562, Sch F and 3468, these are 8865 versions of corresponding return level forms. IRS Schedule K-1 Facsimilie View Forms General State Foreign Form 6252 New Worksheets and Interview forms are available for IRS K-1 facsimilies. Enter information on these IRS K-1 interview forms as it is presented on the applicable Schedules K-1 from the passthrough activities. These forms are new K-1 format for passthroughs and in addition to older format. New columns have been added for K-1 Reconciliation Print Code and X NOT to Pro Forma. Input has been expanded to enhance and improve Foreign filings on form 8865. New worksheets have been added to Foreign > 8865 (New Interview Forms FOR-23 through FOR 29 and FOR-CC). We will now calculate and display cumulative totals for all columns on 6252, page 2. Return Summary State The second page of the return summary now includes a line to indicate the time the return was calculated. Alaska Added Form AK 6300 Incentive Credits Added Form AK 6310 Education Credits Arizona Georgia Added - Schedule ACS Arizona Air Carrier Apportionment Added Form 900 - Georgia Financial Institutions Business Occupation Tax return Added Form PT-440 - Return of Business License Taxes (county and city level filing) Hawaii Added Form FORM N-340 - Hawaii Motion Picture, Digital Media, and Film Tax Credit Added FORM N-586 - Hawaii Tax Credit for Low-Income Housing Tax Product Enhancements 2012.01000 - Interview View 82

Illinois Added Schedule 80/20 - Related-Party Expenses Added Schedule 4255 - Illinois Recapture of Investment Credits Kentucky Added Schedule KESA - Kentucky Environmental Stewardship Act Credit Maine Added Form 941P - Pass-through Entity Return of Maine Income Tax Withheld Added Schedule 2P - Pass-through Entity Withholding Listing Added Schedule 3P - List of Exempt Members Added Form 941P-PV-ME - Maine Payment Voucher Michigan - CIT Forms Added Nebraska North Carolina MI - Form CIT 4899, Michigan Corporate Income Tax Penalty and Interest Computation for Underpaid Estimated Tax MI - Form CIT 4902, Michigan Corporate Income Tax Schedule of Recapture of Certain Business Tax Credits MI - Form CIT 4908, Michigan Corporate Income Tax Annual Return for Financial Institutions MI - Form CIT 4909, Michigan Corporate Income Tax Amended Return for Financial Institutions MI - Form CIT 4910, Michigan Corporate Income Tax Unitary Business Group Combined Filing Schedule for Financial Institutions MI - Form CIT 4911, Michigan Corporate Income Tax Schedule of Flow-Through Withholding MI - Form FTW 4918, Michigan Annual Flow-Through Withholding Reconciliation Return MI - Form FTW 4919 Michigan Schedule of Unitary Apportionment for Flow-Through Withholding MI - Form FTW 4920, Michigan Flow-Through Withholding Opt-Out Schedule MI - Form MBT 4946, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer MI - Form MBT 4947, Michigan Schedule of Certificated Credits MI - Form MBT 4966, Michigan Business Tax Schedule of Flow-Through Withholding MI - Form MBT 4975, Michigan Schedule of Corporate Income Tax Liability for a Michigan Business Tax Financial Filer Added Form 1120XNF Nebraska Amended Financial Institution Tax Return Added Form GEN- 58 - North Carolina Power of Attorney and Declaration of Representative Tax Product Enhancements 2012.01000 - Interview View 83

New Hampshire Pennsylvania Wisconsin Added New Hampshire Combined Return crossover feature, this automated feature can be used for non-designated members to be included in the combined report. The non-designated members that can be automatically included in the combined report are Corporations, S- corporations, and Partnerships. Information for non-designated members that are Fiduciaries or Individuals can also be entered manually. Added Form REV-774 Pennsylvania Assignment of Tax Credit Added Form PW-2 - Wisconsin Nonresident Shareholder Withholding Exemption Affidavit Tax Product Enhancements 2012.01000 - Interview View 84

Fiduciary (1041) Product Enhancements - Interview View Return to Table of Contents. Interview Form 1 Input Box 53 has been adjusted to enter entity type F to prepare form 1041-QFT, a Qualified Funeral Trust. Input Box 80 has been added to indicate a Partial Grantor Trust. Input Box 81 has been added to indicate a perpetual care fund. Interview Form 4 Input Box 35 has been added to print the beneficiary name instead of number on the Federal Schedule K-1. Interview Form Partial Grantor Series The Partial Grantor interview form series has been added to prepare the grantor portion of the trust as it relates to a Partial Grantor Trust. Interview Form K-8 Input Boxes 48 and 49 have been added to indicate the number of gravesites and income distribution for a perpetual care fund. New or Modified Federal Forms Form 1041-QFT, U.S. Income Tax Return for a Qualified Funeral Trust has been added. Form 1041, Perpetual Care Fund modifications have been added to form 1041. Forms Partial Grantor Trust, Statement of Grantor Tax Items and all applicable supporting forms and statements have been added for the grantor portion of a Partial Grantor Trust. New State Forms New Hampshire NH-1041 and all supporting forms and schedules have been added Texas Texas Franchise Tax report and all supporting forms and schedules have been added. Tax Product Enhancements 2012.01000 - Interview View 85

Exempt (990) Product Enhancements - Interview View Return to Table of Contents. There were no changes to Interview View. Tax Product Enhancements 2012.01000 - Interview View 86

Estate and Gift (706/709) Product Enhancements - Interview View Return to Table of Contents. Tennessee Adding TN Form INH 301, Inheritance Tax Return Adding TN Form INH 302, Short Form Inheritance Tax Return Adding TN Form INH 304, Application for Extension of Time to File Estate Tax Return Tax Product Enhancements 2012.01000 - Interview View 87

Employee Benefit Plan (5500) Product Enhancements - Interview View Return to Table of Contents. Efile Form 8955-SSA Spring 2013 Tax Product Enhancements 2012.01000 - Interview View 88