News, Forms & Procedures - January 10 2014

RDE E-file

Always check your e-file interactive diagnostics and run a Print with only Create electronic file checked and then Check E-file diagnostics before transmitting to ExacTax. Procedure charges will apply when e-file corrections need to be applied at ExacTax.



RDE Prior Year E-file

E-file is available for 2012 1040, 1065, 1120 and 990 original returns. Prior to 2012, eFile is not available. When you send a 2011 or earlier year for RDE processing and the electronic filing box is checked the return will take longer to process.

Electronic Funds Withdrawal (EFW)

When bank information has been entered at the top of Form {3A} and e-file is requested, in the event there is a balance due, you must specify to either:

  1. Suppress electronic funds withdrawal (zip 11), or
  2. Enter the date to have the payment take place

Check zip 8 to use 04/15/14 or specify a different date in zip 9.  If both zip 11 and zip 8 or 9 are entered, ExacTax will suppress EFW.

Note: An EFW request for federal does not automatically apply to the state. If you want EFW for California you must submit Form CABank {CA33B} and check zip 3 or enter the date in zip 4. Other states must indicate EFW on their applicable ‘Bank’ form. A payment for the CA LLC must be separately requested as well on Form CALLCBnk {CA56P}.

PIN Indicator

Form Pin {3A}, zip 5 MUST be ‘4’ for joint returns and ‘2’ for all others. Do not leave it blank or make any other entry as this delays the processing of your return.

Suppress Form 2210

E-file requires that the amount of penalty shown on Form 2210 match the amount of penalty shown on Form 1040. If a code ‘2’ is entered on Form Pen {5}, zip 18, (See revised Form 5) to Print Form 2210 and suppress the penalty on the return, the return will be disqualified for e-file if there is a penalty calculated since it will not match the return.

Schedule D

Dates are required on all transactions. You may enter ‘V’ for various or a complete date but don’t leave the date field blank.

Car and Truck Expenses

E-file of Schedule C requires a Form {51} when any car and truck expenses are claimed.

Schedule A {70A} zip 28

The 2013 additional local rate for Los Angeles County is 1.5% and there is no local table; the ‘IRS’ column should be blank.

Form 2441 – Dependent Care Credit

The complete provider name, address and ID number is required on Form {80A}. For California e-file, the provider’s telephone number is also required. Enter the phone number at the end of the provider line and format with the dashes (xxx-xxx-xxxx). The area code is required.

If there are no dependent care expenses this year, the dependent care provider information must be deleted.

Form 8867

When claiming the EIC the due diligence Form 8867 must be included with the return. Many of you are not doing your due diligence and have not answered all of the questions. All questions on Form Cr {79} must be answered completely to qualify for the EIC.

If there are any children claimed for EIC there must be at least one entry in the Residency of Qualifying Children section. If there is a Schedule C there must be at least one entry in the Documents or Other Information for Schedule C section.

Note: You can complete the 8867 questions on any return, even if the EIC ends up not applying. If the taxpayer doesn’t qualify for the EIC, nothing will be printed.

CA Head of Household

California e-file requires the Head of Household Questionnaire, Form {CA42} to be completed. All starred items must be completed.

Tip: If you enter a code ‘6’ on the qualifying dependent on Form 1040 {1}, zip 65, in the State Use field at the end of the dependent line, the dependent information will be transferred to the {CA42} to the fields with the asterisks. A ‘best time to call’ and phone number are required entries in zips 21 - 24. The daytime phone number from Form 1040 {1}, zip 23 will automatically transfer if nothing is entered on {CA42}, zip 23.

Red Pencil Policy

Lately there’s been some confusion as to our policy for using the red pencil on input forms that we’d like to set straight.

Deleting Proforma Pages: Never remove an input form with proforma data on it. Pre-printed data is in the input file and to remove it the item must be deleted by the data entry operator. If you discard the form or cover over the item, our operator will not delete the information. Just cross out the input form with a red pencil.

Deleting Line Items: When deleting a line item use a red pencil to cross it out completely and clearly. Otherwise, do not use a red pencil/pen to make entries or make audit marks.

Revised Input Forms

Input forms that are updated after the proforma and starter kits have been printed are released in ExacNews. There will be a ‘REVISED’ notation in the top left. You can copy the attached form or order additional supplies as needed, to replace your existing supplies. If you are submitting a form with proforma data there is no need to replace the form.

Form ELF {3A}: Zip 39, Taxpayer elects to file on paper, was changed to 38.

Form Pen {5}: 2210 penalty boxes 17 and 18 were changed to 18 and 19. California zip 20 (withholding) was deleted and 21 – 31 were renumbered 20 – 30.

Form 1099R {26A}: Zips 16 and 17 were changed to 15 and 16. Zips 26 and 27 were changed to 18 and 19. Payee’s address, if different from 1040 changed zips 18 – 21 to 20 – 23. Payee’s foreign address changed from 22 – 25 to 24 – 27.

Note: When there was a memo entry from prior years in the old 1099R, zip 17, some stray numbers may print in the edge of this year’s proforma zip 17. These can be ignored.