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Known efile issues and solutions TY 2007 Internal Revenue Service.xls

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Known efile issues and solutions TY 2007  Internal Revenue Service.xls Powered By Docstoc
					                                                                                                                         TY2007 Known e-file issues and solutions
                                                                                                                                          Updated December 16, 2008




                  Form Type                    Schema/Schema Element                                                                                                                                  Work-Around                                                                 Status



            Form 851               Form 851, Part II, column "Owned by corporation Part II has a schema limitation. The last column under                   If the taxpayer needs to report more than one affiliated member owner for a subsidiary listed in Part Schema will be issued in future
                                   no." has schema limitation                      Stockholdings at the beginning of the year is designed to                II complete the XML part II last column "Owned by corporation no.: for each applicable subsidiary      release. Continue to use workaround.
                                                                                   indicate the affiliated member from Part I for which the                 by entering the corporation number for the affiliated member with the majority ownership. If there is
                                                                                   Stockholdings information is being reported in Part II.                  no majority owner, use the owner's number that comes first in Part I. Provide a PDF Form 851 Part
                                                                                   Currently the schema only allows one corporation number to               II showing the information for all the owners for each subsidiary. This PDF file should be attached to
                                                                                   be entered for this element.                                             the consolidated return and named Form851PartII.PDF and described as Form 851 part II Full
                                                                                                                                                            Ownership Information.




            Form 1118              "ForeignCountryOrUSPossession"                       The TY2007 F1118 Instructions reflect "Other Countries" code On both the IRS Form 1118 and in your XML File, leave the field blank if you have an "Other                 eFileTypes schema will be corrected in
                                                                                        as "OC" and the eFileTypes schema erroneously reflects       Country" not listed elsewhere.                                                                              a future TY2008 schema release.
                                                                                        "Other Country" code as "XX". The eFileTypes schema will be                                                                                                              Continue to use workaround.
                                                                                        updated to remove "XX" and add "OC" for "Other Countries".




            Form 1118 Schedule A   Missing write in choices on Form 1118 Schedule       The December 2007 PDF for Form 1118 Schedule A indicated If Form 1118 Schedule A, column 1, is needed to write-in any of the three new choices, include the              Schema corrections will be issued in a
                                   A                                                    new write-ins can be added to Schedule A, column 1. These applicable choice using the General Dependency schema and use "Form 1118 Schedule A, column                    future release. Change submitted.
                                                                                        new write-ins are missing from the XML schema. They       1 workaround" as the description.                                                                              Will be in future TY2008 schema
                                                                                        are: "NOLs", "income from RICs", and "high-taxed income"                                                                                                                 release. Continue to use workaround.
                                                                                        (see Schedule A instructions on page 5).


            Form 1118 Schedule B   Missing multi-year carryover of foreign taxes data Taxpayer unable to report multi-year carryover of foreign             If the taxpayer needs to report carryover of foreign taxes as instructed on Schedule B (Form 1118)   Will be revised in TY2008 schema
                                   on Schedule B (Form 1118) Part II line 4           taxes data on Schedule B (Form 1118) part II line 4                   as multi-year carryover data, then using the following workaround until the attachment               release. Change submitted. Will be in
                                                                                                                                                            TotalCarryoverOfForeignTaxesSch is revised for TY2008. Attach the multi-year carryover data as       future TY2008 schema release.
                                                                                                                                                            a PDF. This PDF file should be attached to the consolidated return and named                         Continue to use workaround.
                                                                                                                                                            TotalCarryoverOfForeginTaxes-1118 (basket).PDF and described as Total Carryover Of Foreign
                                                                                                                                                            Taxes - 1118 (basket) where the basket is the category on the Form 1118 to which this carryover is
                                                                                                                                                            attached.




            Form 1118 Schedule B                                                        The 2007 Instructions for Schedule B (Form 1118) instruct
                                   Missing literal write-in indicator on Schedule B (Form 1118) line 5                                                      Taxpayers who need to reclassify high-taxed income from passive category income to general           Literal write-in indicator will be added
                                                                                        taxpayers reclassifying high-taxed income from passive              category income, as instructed on Schedule B (Form 1118) line 5, should include this amount in the   to schema in a future release. Change
                                                                                        category income to general category income, to include the          line 5 total, and use the General Dependency schema to indicate the high tax kick out. The           submitted. Will be in future TY2008
                                                                                        related tax adjustment in the line 5 total. The taxpayer is also    Description of the General Dependency should be "Schedule B (Form 1118) Line 5 HTKO".                schema release. Continue to use
                                                                                        instructed to "enter" on the dotted line to the left of the entry                                                                                                        workaround.
                                                                                        space for line 5 "HTKO" and the amount of the tax adjustment.
                                                                                        Indicate whether adjustment is positive or (negative). See
                                                                                        General Category Income on page 2 for additional
                                                                                        information.




            Form 1118 Schedule J                                                        As an alternative, the
                                   Missing literal write-in indicator on Top of form Schedule J (Form 1118) 2007 Instructions for Schedule J (Form          Taxpayers who choose to follow the principles of Notice 89-3,1989-1C.B. 623, rather than applying    Literal write-in indicator will be added
                                                                                        1118) instruct taxpayers to make the following notation on the      the Temporary Regulations section 1.904(g)-3T to their 2007 tax year should use the General          to schema in a future release. Change
                                                                                        top of Schedule J: "U.S. Loss Allocation Under Notice 89-3"         Dependency schema and use "Top of Schedule J notation: "U.S. Loss Allocation Under Notice            submitted. Will be in future TY2008
                                                                                        if a corporation chooses to follow the principles of Notice 89-3,   89-3" workaround" as the description.                                                                schema release. Continue to use
                                                                                        1989-1C.B.623, rather than applying the Temporary                                                                                                                        workaround.
                                                                                        Regulations section 1.904(g)-3T to its 2007 tax year.




            Form 1118 Schedule J                                                        In addition, 10
                                   Missing literal write-in indicator on Schedule J (Form 1118) linethe 2007 Instructions for Schedule J (Form 1118)        Taxpayers who choose to follow the principles of Notice 89-3,1989-1C.B. 623, rather than applying    Literal write-in, "Allocation of domestic
                                                                                        instruct taxpayers to cross out the line description for line 10    the Temporary Regulations section 1.904(g)-3T to their 2007 tax year should leave line 10 blank,     losses" and the U.S. source losses
                                                                                        and write in "Allocation of domestic losses" if a corporation       but use the General Dependency schema and use line 10 description "Allocation of domestic            allocated to separate categories with
                                                                                        chooses to follow the principles of notice 89-3,1989-1C.B.623,      losses workaround" as the description.                                                               income amounts will be added to
                                                                                        rather than applying the Temporary Regulations section                                                                                                                   schema in a future release. Change
                                                                                        1.904(g)-3T to its 2007 tax year.                                                                                                                                        submitted. Will be in future TY2008
                                                                                                                                                                                                                                                                 schema release. Continue to use
                                                                                                                                                                                                                                                                 workaround.


6/30/2010                                                                                                                                             1 of 4
                   Form Type                    Schema/Schema Element                                                                                                                                Work-Around                                                                  Status




            Form 1120               Paid preparer information                        When any paid preparer information is included in the               As a short term solution until a change can be made to the preparer SSN/PTIN field in TY2008              The TY2008 schema will be revised to
                                                                                     electronic file, SSN/PTIN is a required field. But foreign          schemas, in the case of foreign return preparers, the preparer name and SSN/PTIN may be left              allow an indication that a foreign
                                                                                     preparers do not have these numbers assigned to them.               blank in the XML file. The preparer can sign the return and supply the firm’s Employer Identification     preparer was used. Continue to use
                                                                                                                                                         Number through the Form 8453-C, filed as a PDF attachment with the corporation's electronically           workaround.
                                                                                                                                                         filed income tax return. As such, it is considered part of the return for purposes of electronic filing
                                                                                                                                                         of the Form 1120. This practice will fulfill the requirements of I.R.C. Sections 6109(a)(4) and
                                                                                                                                                         6695(c), and Treasury Regulation Sections 1.6109-2(a) and 1.6695-1(c).




            Form 1120 Sch M-3       Part II, Line 17a                                Currently, Part II, Line 17a, is restricted to                      For Part II, Line 17a, if you need to enter a negative number within the brackets, use the general The schema has been undated for TY
            EliminationsOr                                                           "USAmountNNType". This will be changed to                           dependency xml schema and use "IRS 1120 Schedule M3 Part II Line17a workaround" as the             2007 in version TY2007v2.4
            Adjustments                                                              "USAmountType" to allow both negative and positive numbers          description. Currently, Form 1120, Sch M-3, Part II, Line 17a only allows non-negative numbers.
                                                                                     in the Schedule M3 (Form 1120) "Eliminations Or                     Enter the negative number in the General Dependency. Make a book adjustment to move the Cost
                                                                                     Adjustments" schema.                                                of Goods Sold and then document the book adjustment to show that the change was made only to
                                                                                                                                                         facilitate electronic filing of the return.




            1120-F                  Schemas for 1120-F or Schedules M-1/M-2, M-3, Instructions for Form 1120-F and it's associated schedules (M- For any schedule, election, statement, etc. that is needed but unavailable in the schema for Forms                The changes will be made in future
                                    H, I or P                                     1/M-2, M-3, H, I and P) were published February 2008 so        1120-F or Schedules M-1/M-2, M-3, H, I or P, use the General Dependency and title the                             TY2008 schema. Continue to use work
                                                                                  required schedules, elections or statements may be missing     Dependency appropriately.                                                                                         around.
                                                                                  from the schemas.


            Form 2220, Schedule A "First4MonthsTotalTaxableIncome"                   The efile type in version 2.3 calls for a "LargeRatioType" in Since there should not be any entries on line 9b until later in the year, line 9a and 9c should have            The schema has been corrected for TY
            Part I, Line 9c columns a "First6MonthsTotalTaxableIncome"               error, the correct efile type should be "USAmountType" on all the same entries on them. Please make line 9c a redundant data field and pick up the amount                     2007 in version TY2007v2.4
            through d                 "First9MonthsTotalTaxableIncome"               4 columns for 9c.                                             from line 9a for each of the columns on the Form 2220 for line 9c.
                                      "EntireYearTotalTaxableIncome"



            4136                    Form 4136, Line 8d(a) - Type of Use              The schema currently allows for Type of Use codes 1, 9,10,     Use the General Dependency and describe it "Form 4136 Line 8d(a) Type of Use Workaround".                      The schema will be changed to allow
                                                                                     11, 13, 14, 15 which are related to Aviation Grade Kerosene.                                                                                                                  for both Aviation Grade Kerosene Type
                                                                                     Taxpayers need to be able to insert Type of use codes for both                                                                                                                and Noncommercial Aviation Kerosene
                                                                                     Aviation Grade Kerosene and Noncommercial Aviation                                                                                                                            Type. This change will be submitted
                                                                                     Kerosene (1, 9, 10, 11, 13, 15, 16).                                                                                                                                          WR#7.


            Form 4562-FY                                                             This new form is designed to be used only by taxpayers who          There are several options for Fiscal Year filers.                                                         TY2007v2.4 will contain the schema
                                                                                     have a 2007-2008 fiscal tax year; and wish to take advantage        a) FY filers may continue to efile Form 4562 (TY2007v2.3) instead of the new F4562-FY but must            for Form 4562-FY. However, with
                                                                                     of the new 50-percent special depreciation allowance for            ensure that their calculations for Line 14 and 25 on page 1 are correct.                                  incorrect maxInclusive values on lines
                                                                                     property that was placed in service after December 31, 2007.        b) FY filers, who can wait until the TY2007v2.4 schema is available, can submit the F4562-FY;             1 and 3. Corrected Form 4562-FY
                                                                                     This provision was added by Act section 103 of P.L. 110-185,        however, only if the maxInclusive values on lines 1 and 3 are not exceeded. Forms with higher             TY2007 schema, without the erroneous
                                                                                     the Economic Stimulus Act of 2008. On page 1, Line 14, and          values will reject. FY filers also have to ensure that the F4562-FY is attached at the Return level,      maxInclusive values on lines 1 and 3,
                                                                                     on page 2, Line 25 were revised to provide space for this           not the line level. The TY2007v2.3 schema version does not include these errors and some                  will be available in the near future.
                                                                                     “bonus depreciation.” Details will be provided in the               taxpayers may be able to submit their returns using this prior schema version.                            Corrected in TY2007v2.5. As of Jan
                                                                                     instructions. We have several schema issues relating to Form        c) Some FY filers may be able to wait with their tax return submission until the corrected schema         2009, Form 4562-FY will no longer
                                                                                     4562-FY.                                                            version is avaiable on irs.gov. d) FY filers who cannot wait until the corrected schema version,          apply.
                                                                                     Issue 1: Form 4562-FY schema is not available until                 without any maxInclusive values, is available, may provide their maxInclusive values in a General
                                                                                     beginning of June 2008 - TY2007v2.4.                       Issue    Dependency and attach it to the return and use "Form 4562-FY, Part I, lines 1 and 3, workaround"
                                                                                     2: The xml schema for new Form 4562-FY - TY2007v2.4                 as the Description. Filers must indicate in this dependency which line the amount(s) apply to.
                                                                                     contains erroneous maxInclusive values on lines 1 and 3.
                                                                                     Issue 3: The TY2007v2.4 schema does not allow the 4562-
                                                                                     FY at the line level of any tax forms that it can be attached to.
                                                                                     Therefore, filers must attach the Form 4562-FY at the Return
                                                                                     level to avoid rejects.




6/30/2010                                                                                                                                          2 of 4
                   Form Type             Schema/Schema Element                                                                                                               Work-Around                                                                Status




            Form 4562                                            The TY2007v2.4 xml schema includes erroneous                      There are several options:                                                                            TY2007v2.4 will contain the schema
                                                                 maxInclusive values on lines 1 and 3. Filers entering values      1) The TY2007v2.3 schema version does not include these errors and some taxpayers may be able         for Form 4562. However, with
                                                                 that are higher than those in the schema will receive a reject.   to submit their returns using this prior schema version.                                              incorrect maxInclusive values on lines
                                                                                                                                   2) Some filers may be able to wait until the corrected schema, without any maxInclusive values, is    1 and 3. Corrected Form 4562 TY2007
                                                                                                                                   published.                                                                                            schema, without the erroneous
                                                                                                                                   3) Filers who cannot use one of the above options and need to file with higher maxInclusive values,   maxInclusive values on lines 1 and 3,
                                                                                                                                   may include use a General Dependency to provide their values, attach it to the return and use         will be available in the near future.
                                                                                                                                   "Form 4562, Part I, lines 1 and 3, workaround" as the Description. Filers must indicate in their      Corrected in TY2007v2.5.
                                                                                                                                   dependency which line their amount(s) apply to.




            5471               PersonName, Page 1, Line 2a       Currently the Form 5471 schema does not allow for a SSN on Taxpayers should use the PersonName element already on line 2a and leave the EIN element                     Will be corrected in future schema
                                                                 Page 1, Line 2a of the form.                               blank. Enter the person's name. Then on the same line, enter the letters "SSN" and the Social                release. Continue to use workaround.
                                                                                                                            Security Number. This line has a total of 35 characters to enter both the name and SSN so
                                                                                                                            taxpayers may have to abbreviate.
                                                                                                                            Examples:
                                                                                                                            John Doe SSN 999999999 enter as John Doe SSN 999999999
                                                                                                                            Constance Amelia Greenfinch SSN 999999999 enter as C A Greenfinch SSN 999999999




            5713                                                 The Form 5713 schema erroneously shows Line 13a as                If you are filing Form 5713 for tax year 2007 or 2008 and the answers to Lines 11 and 12 are both     The changes will be made in a future
                                                                 required. Line 13a is not required if the answers to Lines 11     “No”, then you can attach Form 5713 as a .pdf. Use "Form 5713 Document" as the Description for        schema release
                                                                 and 12 are both "No.".                                            the .pdf attachment. If you prefer not to attach Form 5713 as a .pdf, you can select “No” as the
                                                                                                                                   responses for Line 13a to prevent a reject. The schema will be corrected for Tax Year 2009.




            5735                                                 The name on the Form 5735 has been changed to American            Taxpayers e-filing their returns needing to include the “write-in” American Samoa Economic         Corrected in TY2007v2.3 schema.
                                                                 Samoa Economic Development Credit. This credit is used to         Development Credit explanation on the forms listed below will need to use the
                                                                 determine the allowable amount for several other credits and      GeneralDependencySchema and reference it from the line indicated below for that applicable form.
                                                                 is to be included on the same line as the Qualified Electric      The “write-in” explanation on this schema must be described as Form 8835 Credit Amount the “write-
                                                                 Vehicle Credit and identified by a “write-in” explanation.        in” explanation should say - : “American Samoa Economic Development Credit amount included of
                                                                                                                                   $XX” where XX is the amount of the credit.
                                                                                                                                   Form 1120 – U. S. Corporation Income Tax Return - Sch J, Line 5b
                                                                                                                                   Form 8835 – Renewable Electricity, Refined Coal, and Indian Coal Production Credit –Part II, Line
                                                                                                                                   36c
                                                                                                                                   Form 8844 - Empowerment Zone Employment Credit - Part II, Line 16c
                                                                                                                                   Form 8860 - Qualified Zone Academy Bond Credit - Part II, Line 7c




            8594               Form 8594, Line 7 schema          Form 8594 instructions state to enter the tax year(s) and form    If multiple tax years are needed to be included on Line 7, use the description "Form 8594 Line 7      Will be corrected in future schema
                                                                 number with which the original and any supplemental               Workaround" in the General Dependency.                                                                posting. Continue to use workaround.
                                                                 statements were filed. Line 7 does not support multiple tax
                                                                 years.


            8820                                                 Missing statement to explain Controlled Group Members             Use the General Dependency and describe it "Form 8820 Line 2 Controlled Group Member                  Will be corrected in future schema
                                                                 Computation                                                       Workaround".                                                                                          release. Continue to use workaround.




            8820                                                 Missing Control Group Members Credit Statement                    Use the General Dependency and describe it "Form 8820 Line 2 Controlled Group Member                  Will be corrected in future schema
                                                                                                                                   Workaround" .                                                                                         release. Continue to use workaround.




6/30/2010                                                                                                                     3 of 4
                   Form Type              Schema/Schema Element                                                                                                                        Work-Around                                                             Status




            8865               Itemized Ordinary Income Loss Statement          The dependency Itemized Ordinary Income Loss Statement is If the filer doesn't have an EIN, they should omit the EIN element until the schema change has       This dependency will be updated with
                               Schedule B, Line 4: Schedule B, Line 7: Schedule missing necessary efiletypes (APPLIED FOR" or             been made.                                                                                           the necessary efiletypes.
                               B, Line 20: Schedule K, Line 11:                 "FOREIGNUS").




            8886               Form 8886, Line 7b, DescribeExpectedBenefits,    Large Taxpayers require additional space for the Expected     If additional space is needed at line 7b, form 8886, please use the General Dependency and use   A dependency will be created for this
                               ShortExplanationType                             Benefits Description. The ShortExplanationType only allows    "Form 8886 Expected Benefits Workaround" as the Description.                                     line and published in a future schema
                                                                                1000 characters. The efile type will stay the same; however                                                                                                    posting for TY2008. Change
                                                                                we will attach a dependency at this line for additional                                                                                                        submitted. Will be in future TY2008
                                                                                explanation.                                                                                                                                                   schema release. Continue to use
                                                                                                                                                                                                                                               workaround.




6/30/2010                                                                                                                                 4 of 4

				
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