April 20, 2023

TaxWise Software

Changes for

Tax Year 2011CCH Presentation Excerpts From Dallas, TX JulyWith updatedInformation byHM Riggert NY3

Incidents: Rejected Returns (AARP) 5,431 of 31,484

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Reject Code

Qty Explanation

R0000-004 20367

Invalid MeF schema. Sch A filed prior to updating software

502 6913 Employer EIN does not match IRS Master File

R0000-500 4410 MeF Primary SSN/Name Control Mismatch

R0000-504 4310 MeF Dependent SSN/Name Control Mismatch

500 3703 Secondary SSN/Name Control Mismatch

R0000-503 3608 MeF Spouse SSN/Name Control Mismatch

503 3467 Spouse SSN/Name Control Mismatch

504 3422 Dependent SSN/Name Control Mismatch

F1099R-502

3102 MeF 1099R EIN does not match IRS Master File

FW2-502 2949 MeF W2 EIN does match IRS Master File

Total Rejects: 125,150

Incidents: Software Functionality 4,603 of 21,433

These are software functions that generated “How Do I” questions.

Carryforward Prior Year Returns Desktop TaxWise Online (* Adding a Restore All feature) – Former

Desktop users were used to deleting returns, therefore, they deleted TWO returns in error

Versions Program, States, Federal

New Return New Return is grayed out in Desktop New Return Button is missing in TWO

Printing Setup Print Sets in TWO Print Packets in Desktop

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What’s Changing in the world of Support Expansion of hours in West Coast Support Center

Allows primary SFS support to staff more appropriately for known peak hours

Modifying CRM (Customer Records Management) system to streamline the call flow process Streamline the logging process to allow for more targeted data

mining opportunities and to reduce the amount of required after call work

More visible indicator each time the rep logs into the CRM if they have an unsolved callback

Capture repetitive operating system type information so we don’t have to spend time gathering the data when the customer calls (i.e., Operating System, network, internet connectivity, etc.)

Changes to screening and hiring process Support Center vs Call Center Incorporate more screening surrounding research capabilities

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What’s Changing in the world of SupportChanges to the training process

Reset focus on knowledge libraries available to the agents

Walk through New Day 1

Efforts to expand and retain experience2010: We had 70 returning seasonal reps2011: We had 17 returning seasonal reps (moved

facility to a different state)Keeping 38 reps through summer as a long-term

temporary assignment40 additional reps are eligible for 2012 seasonal

assignment

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TaxWise Online Enhancements – A look ahead

Speed All communication is through a secure server and connection.

New Features Restore Returns Introducing the Function Keys Enhanced Help Center Calculated entries

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TaxWise Online Enhancements – Function Keys

Users will have the ability to use some Function Keys in TaxWise Online

Mimics how Desktop works and makes transition from Desktop to TWO easier

F1 – Opens Program HelpF3 - Toggles between

required/not requiredF8 – Toggles the override

featureF9 – Links (already

available)

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TaxWise Online Enhancement – Help Center

The TWO Help Center is being redesigned by removing links not used and adding the following

Click a link to quickly access the pre-recorded TaxWise Online lessons

Quick access to a page that will show the following 1040 version 1040 release notesstate version numbers state release notes

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TaxWise Online Enhancement – Restore Returns

Multiple Deleted Returns can now be restored using the Restore Returns feature

The ADMIN user or anyone assigned the Administrator role can see the list of deleted returns and choose to restore one or all

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TaxWise Online Enhancement – Inactive User List

If the ADMIN user or any user with the rights to create users creates a username that exists in the inactive user list the following message will display

This messaging is applicable to any of the web applications that utilizes UUMS (Unified User Management System)

TaxWise Online TaxWise University Support Site

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TaxWise Online Enhancement – Calculated Entries

User is displayed a warning when they try to enter data or select a calculated entryMimics the calculated entry behavior in desktop

State Direct deposit or Electronic Funds Withdrawal entries will link back to the state interview page if the State interview is usedReduces confusion on how to enter the direct

deposit or electronic funds withdrawal

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Changes that affect both product lines

The IRS has passed several changes this year that affect both TaxWise Online and TaxWise Desktop

Schedule D Changes including adding new form 8949 IRA Worksheet ITIN change1098C VIN VerificationMileage Rates Changed on July 1, 2011

Introduction of Preparer User Form

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Schedule D Changes and New Form 8949

Assets are no longer entered directly on the Schedule D

Added Form 8949 - Page 1 is for short term, Page 2 is for long term

Removal of the Long Term/Short Term Capital Gains Worksheets from Find a Form

Capital Gains worksheet will load the 8949 and put the assets on the appropriate page and is the only place to designate assets as Taxpayer, Spouse, or Joint

New A/B/C indicators will be on the Capital Gains worksheet under the 1099 column

Column (b) Code for type of adjustment reported in column (g) (e.g. offset home loss)

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Schedule D Changes – Sample 1099-B

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NewReq’t

Entries not required for:Items other than stocksPurchases before 2011Most Mutual FundsStocks held in a DRIP

Schedule D Changes and New Form 8949

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You can have 3 Form 8949s since only oneBox can be checked on each form.

Schedule D Changes and New Form 8949

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Schedule D no longer shows individual transactions, just totals.Data shows a home sale with an adjustment to offset the loss andthe $35 sales commission for the stock sale on the 1099-B.

8,859 10,123 (35) (1,299)

Deductible and Nondeductible IRA Worksheet

Changes to the IRA Worksheet includeLine 10:  Changed the

wording to Enter Traditional Contributions for 2011

Added the word Contribution to each section header to make it more noticeable 

Line 20: Bold the words Enter Roth IRA contribution for 2011

06/14/2010 - USA 17

1098C – VIN Number Validation

Vehicle Identification Number’s entered on the 1098C will be Validated in 2011

The tax applications will require the VIN number on the 1098C per the new IRS rules.

If the VIN entered is not consistent with the algorithm, the user will be displayed a message More information will be distributed

on this prior to season.

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ITIN Changes

If the taxpayer enters an ITIN for the taxpayer identification number instead of a social security number, then the social security number box on W-2 and 1099 forms will not be filled in automatically.

The taxpayer identification number that appears on the W-2 and 1099 forms will have to be entered by the counselor.

This change was made because some taxpayers with ITINs had different numbers on those forms.

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Mileage Rates Changed July 1, 2011

Schedule C or C-EZ business mileage must be split between the two halves of the year: 51 cents per mile for the first half and 55.5 cents per mile for the second half.

Medical mileage deductions must also be split between the two halves of the year: 19 cents per mile for the first half and 23.5 cents per mile for the second half.

The charitable-related mileage remains constant at 14 cents per mile all year.

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Preparer Use Form – Dedicated to Prep Use Fields

The Preparer Use Fields are deleted from the Main Information Sheet

Preparer Use Form will allow the sites to enter up to 25 questions and utilize 25 Preparer Use Fields All Preparer Use fields will be standardized to a 15 character alpha-

numeric field All Preparer Use Field entries will be stored in the database for

reporting purposes (not the question)

Taxpayer Reminder field Enter information that you need the preparer to be aware of the

following year (e.g. A statement that this return includes a loss-carryover)

Will automatically display when a return is started in TY 2012 (January, 2013)

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Preparer Use Form – TaxWise Desktop

Load the Preparer Use Form in Tax Form Defaults

Enter up to 25 questions in column A Enter up to 76 characters Helps preparers gather information needed for reports Questions are not stored in the database 11 through 15 are Disability, Foreign Language, Counselor, Reviewer,

SIDN

Enter a locked or unlocked history list for each question 15 character alpha-numeric entries The entry field is automatically marked as required if a question is

entered All 25 entries are stored in the database Reportable in desktop and via the report server

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Preparer Use Form – TaxWise Online

Enter the Questions and locked list in Settings

Enter up to 25 questions in column A Enter up to 76 characters Helps preparers gather information needed for reports Questions are not stored in the reports database 11 through 15 are Disability, Foreign Language, Counselor,

Reviewer, SIDN

Enter a history list for each question, if desired 15 character alpha-numeric entries The entry field is automatically marked as required if a question is

entered All 25 entries are stored in the database Reportable in TWO reports and via the report server

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Legacy vs Modernized E-file

Challenges from a Vendor perspective Supporting dual platforms

Legacy sunsets October, 2012

Start dates of e-file platform differences 80% of our return base could have gone MeF during the first week

Reacting to User Experience changes

Challenges from a Preparer perspective Lack of screen shots and practice due to release timing Confusion over how to migrate new processes into existing processes

Submission ID vs DCN New state e-file methodology E-file errors vs validation errors

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Modernized e-File: Form Set

Balance of 1040 Form set now supports MeF with the following exceptions1040 NR and 1040X

The published start date still has MeF opening the week after legacy Industry has made recommendations for the IRS to start

accepting MeF returns at the same time they start accepting Legacy e-files

E-filing of Prior Year Returns With MeF, you’ll be able to e-file the current tax year plus 2

prior years, starting with tax year 2010 returns. For example, a tax year 2010 return will be e-fileable until the end of 2013

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Modernized e-File: PDF Attachments in Desktop

Desktop will support PDF attachments, but AARP is not utilizing this for Tax Year 2011

IRS is not requiring the attachments for TY 2011 PDF attachments will be required for TY 2012 (January, 2013) – May

have to consider these returns as out-of-scope if we don’t have scanners.

Entries that allow a PDF attachment will be listed on the form with a checkbox Click the applicable checkbox Windows browser window will display Select the appropriate PDF TaxWise verifies the file is in the correct format (.PDF) De-select the box to remove the PDF attachment TaxWise includes the attachment with the e-file

April 20, 2023 - USA 26

Modernized e-File: PDF Attachments in TaxWise Online

Select the entry on the form and a browser box displays for the attachment

Only Printable Document Files (PDF) are allowedUser receives error message when not attaching a *.PDF

fileAll attachments are scanned for virus protection

Uncheck the box to remove the PDF attachmentOne attachment per entryWorks in both Default Mode and Classic ModeUsers must Browse to the *.PDF

Checkmark goes away if the PDF is not loaded and you cannot type in the browse box

Note: The browser box is different between Default mode and Classic Mode

April 20, 2023 - USA 27

Modernized e-File: State Methodology

Beginning filing season 2012 (tax year 2011), CCH Small Firm Services (TaxWise) has made a business decision to support both linked and unlinked state e-file submissions for the Modernized e-File program (MeF). 

The state e-file submissions will default to link for states that are participating in the MeF program. The site will have the option to change the state e-file submission to unlinked for situations where the state return needs to be filed prior to or without the Federal e-File.

New York will not participate in the MeF program this season, therefore, all returns will be unlinked.

April 20, 2023 - USA 28

Modernized e-File: State Methodology

What does linked and unlinked mean to your site?

Linked return is when IRS will not make the state return available until the Federal return is accepted. 

Unlinked return is when the state return will be made available to the state agency at the time of submission.  The state processes the return without knowledge of the Federal filing status.

 If the federal return cannot be created using the MeF program and is e-filed using the legacy program, the state return will also utilize the legacy process and the state e-file will be generated as a state-only return.  The TaxWise applications will continue to indicate when the Federal e-file has been accepted to allow you to more easily send the state after the Federal return has been accepted.

April 20, 2023 - USA 29

Customer Support Site – Your Solutions Center

Changing the format to be more inviting and easier to access information.

The Solutions Center will be the landing page that will give the sites immediate access to the following without requiring a loginBlogsHot TopicsKnowledge BaseCalendars and ChartsLinks to key items on www.irs.gov

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Customer Support Site – Your Solutions Center

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Customer Support Site – SFS University

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Customer Support Site – SFS University

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Customer Support Site – SFS University

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These are interactive videos requiring creating an account. Courses includeTests. E.g. The video instructs to select New W2 – You must do so to proceed.You can print a copy of the course and you can print a completion certificate.

Customer Support Site – Password Recovery

Adding an additional option for changing the ADMIN password:3 failed login attempts3 attempts to enter the security question Enter the email address on file for the ADMIN user

If the email address matches the email address on file for the ADMIN user, the password will be reset to a temporary password Emailed to the email address on file for the ADMIN user Automatically requires the password to be changed

This enhancement also applicable with TWO Admin Password

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