Known e-file Issues and solutions _2010_ - Internal Revenue Service

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Known e-file Issues and solutions _2010_ - Internal Revenue Service Powered By Docstoc
					                                                                                                                           ~TY2010 Known Issues and Solutions~
                                                                                                                                          Processing Year 2011
                                                                                                                                               As of 04-07-2011


     Form Type                 Schema/Schema Element                                  Description of the Problem                                                                              Temporary Solution(s)                                                                              Status


 Form 1040 (Schedule F) Form 1040 (Schedule F) Stylesheet, Line 37        Because of late legislation, the Form 1040 (Schedule F)              The TY2010 stylesheet may be used as is.                                                                                           The TY2010 stylesheet will not be
                                                                          stylesheet will not be updated with changes to line 37.                                                                                                                                                 updated but future tax year stylesheets
                                                                                                                                                                                                                                                                                  will reflect Line 37 changes
                                                                                                                                                                                                                                                                                  appropriately.
                                                                          Rev. Proc. 2009-37 provides that a taxpayer make a Section Use the “General Dependency” to provide this statement. Describe it as “Section 108(i) Election” Make sure that you                          Because this election is only valid for
                                                                          108(i) election to defer cancellation of debt (COD) income in     provide all the required information as described in the Revenue Procedures 2009-37 Section 4 (Election Procedures) for               transactions occurring in 2009 and
                                                                          connection with an applicable debt instrument reacquired after Section 108(i) Election.                                                                                                                 2010, a dependency will not be created
                                                                          2008 and before 2011 and include the deferred income over a                                                                                                                                             for this election.
 Form 1065                                                                5-year period by attaching a statement to the taxpayer’s timely
 Form 1065B                                                               filed (including extensions) original federal income tax return
                                                                          for the taxable year in which the reacquisition of the applicable
                                                                          debt instrument occurs. A dependency has not been created.


 Form 1065               LowIncomeHousingCredit (Form 1065, Sch K,        Currently there is a business rules (F1065-051)that requires         For those filers who are partners, stakeholders or beneficiaries on a pass through entity, and not required to complete and        Modifications will be made to the
                         Line 15a) and LowIncomeHousingCreditOther        that forms 8586 and 8609-A be attached if there is amount            attach Form 8609-A to Form 1065, will need to complete a dummy Form 8609-A and attach it to their tax return in order to           business rule as soon as requirements
                         (Form 1065, Sch K, Line 15b)                     greater than $499 on Lines 15a and 15b of Sch K. There is an         be able to file electronically. . For the BIN number use "AA0000000", for question B you can check either box, and for             are updated to allow for the
                                                                          exception that will exempt some filers from having to complete       questions C thorugh E, you will answer "NO". Part II should be left blank.                                                         exception.This work around will be in
                                                                          and attach Form 8609-A to Form 1065.                                                                                                                                                                    effect for TY2009 until PY2013 and
                                                                                                                                                                                                                                                                                  TY2010 until corrections/updates are
                                                                                                                                                                                                                                                                                  made
 Form 1120               Form 1120, Line 10                               Rev. Proc. 2009-37 provides that a taxpayer make a Section Use a GeneralDependency to provide the statement(s). Describe a single election as “Section 108(i) Election.” If a                           Because this election is only valid for
                                                                          108(i) election to defer cancellation of debt (COD) income in     consolidated/mixed return is filed with multiple elections attached, these elections may be described as “Section 108(i)              transactions occurring in 2009 and
                                                                          connection with an applicable debt instrument reacquired after Election XX-XXXXXXX”, with the Xs representing the electing entity's EIN.                                                                2010, a dependency has not been
                                                                          2008 and before 2011 and include the deferred income over a                                                                                                                                             created for this election.
                                                                          5-year period by attaching a statement to the taxpayer’s timely
                                                                          filed (including extensions) original federal income tax return
                                                                          for the taxable year in which the reacquisition of the applicable
                                                                          debt instrument occurs. Although the form instructions instruct
                                                                          an electing taxpayer to attach the election to its return, a
                                                                          dependency has not been created.

 Form 1120 Amended       Form 1120 Amended Return - 1120 Form Level       LMSB Directive on Examination Action with Respect to                 Taxpayers who electronically file may fulfill the requirement to mark "Filed pursuant to Directive of Examination Action with      As the duration of this directive has not
 Return                                                                   Certain Gain Recognition Agreements provides guidance to             respect to Certain Gain Recognition Agreement” at the top of the amended return by attaching a General Dependency and              yet been determined, no schema
                                                                          taxpayers to mark "Filed Pursuant to Directive of Examination        entering "GRA Directive” in the Description field of the 1120 return with the amended return checkbox checked. In addition,        changes will be at this time.
                                                                          Action with respect to Certain Gain Recognition Agreement" at        taxpayers must enter "Filed pursuant to Directive of Examination Action with respect to Certain Gain Recognition
                                                                          the top of the amended return.                                       Agreement” in the explanation (attachment information) field of the General Dependency
 Schedule UTP (Form      Column (e), "Major Tax Position"                 Column (e) is described in the schema as "Administrative             Entries in column (e) should reflect entries for "Major Tax Position," as shown on the schedule and described in the               This element has been updated in
 1120)                   Displayed in schema as Administrative Practice   practice," but shown on the schedule and described in the            schedule instructions.                                                                                                             TY2010v2.2. This solution is not
                                                                          instructions as "Major Tax Position."                                                                                                                                                                   necessary for 2010v2.2 or subsequent
                                                                                                                                                                                                                                                                                  schema versions.
 Schedule UTP (Form      Column (f), "Ranking of Tax Position"            The final draft of instructions for the schedule makes no            Do not make an entry within this schema element.                                                                                   This element has been deleted in
 1120)                   Displayed in schema as Choice between            provision for entries in the field represented by the element                                                                                                                                           TY2010v2.2. This solution is not
                         Maximum Tax Adjustment or Valuation Tax          MaximumTaxAdjustment.                                                                                                                                                                                   necessary for 2010v2.2 or subsequent
                         Position: MaximumTaxAdjustment                                                                                                                                                                                                                           schema versions.
 Schedule UTP (Form      Column (f), "Ranking of Tax Position"            Column (f) is described in the schema as Choice between              Entries in column (f) should reflect entries for "Ranking of Tax Position," as shown on the schedule and described in the          This element has been updated in
 1120)                   Displayed in schema as Choice between            Maximum Tax Adjustment or Valuation Tax Position, but                schedule instructions. For MeF purposes, enter "TP", followed by the Transfer Pricing position number, i.e., "TP1", "TP2",         TY2010v2.2. This solution is not
                         Maximum Tax Adjustment or Valuation Tax          shown on the schedule and described in the instructions as           etc. for transfer pricing tax position rankings.                                                                                   necessary for 2010v2.2 or subsequent
                         Position: TransferPricingTaxPosition             "Ranking of Tax Position." Schedule instructions tell the                                                                                                                                               schema versions.
                                                                          taxpayer to report Transfer Pricing position rankings in Column
                                                                          (f) with the letter "T", followed by the position number, i.e.,
                                                                          "T1", "T2", etc. However. the element
                                                                          TransferPricingTaxPosition uses the efileType
                                                                          TransferPricingTaxPositionType, which only allows the
                                                                          taxpayer to enter "TP", followed by the Transfer Pricing tax
                                                                          position rankings, i.e., "TP1", "TP2", etc.
 Schedule UTP (Form      Column (f), "Ranking of Tax Position"            Column (f) is described in the schema as Choice between              Entries in column (f) should reflect entries for "Ranking of Tax Position," as shown on the schedule and described in the          This element has been updated in
 1120)                   Displayed in schema as Choice between            Maximum Tax Adjustment or Valuation Tax Position, but                schedule instructions. To report Other tax positions, which the instructions indicate should be designated by using the letter     TY2010v2.2. This solution is not
                         Maximum Tax Adjustment or Valuation Tax          shown on the schedule and described in the instructions as           "G" followed by the position number, make all entries using the efileType ValuationTaxPositionType in the element                  necessary for 2010v2.2 or subsequent
                         Position: Other Tax Position (displayed in       "Ranking of Tax Position." Schedule instructions tell the            ValuationTaxPosition, using the letter "V" followed by tax position rankings, i.e., "V1", "V2", etc.                               schema versions.
                         schema as ValuationTaxPosition)                  taxpayer to report Other tax position rankings in Column (f)
                                                                          with the letter "G", followed by the position number, i.e., "G1",
                                                                          "G2", etc. An element was not created for Other tax positions.
                                                                          However. the element ValuationTaxPosition was created with
                                                                          the efileType ValustionTaxPositionType, allowing the taxpayer
                                                                          to enter "V", followed by tax position rankings, i.e., "V1", "V2",
                                                                          etc.
 Schedule UTP (Form      Part II: Uncertain Tax Positions For Prior Tax   Part II is not to be completed for returns filed in 2011, since      For TY 2010, do not enter information for Part II. Part II will be used in tax years after 2010 to report tax positions taken by   This portion of the schema has been
 1120)                   Years.                                           tax positions taken prior to the 2010 tax year are not reported.     the corporation in a prior tax year that have not been reported on a Schedule UTP filed with a prior year’s tax return. It will    removed from the TY2010v2.2
                                                                          However, the schema for Schedule UTP allows for entries in           not be completed in 2010, because corporations are not required to report a tax position taken in a tax year beginning             schema. Relevant portions will be
                                                                          Part II.                                                             before January 1, 2010.                                                                                                            restored and updated for TY2011.




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     Form Type                 Schema/Schema Element                                      Description of the Problem                                                                           Temporary Solution(s)                                                                          Status


 Form 1120-F             Form 1120-F, Section II, Line 10                     Rev. Proc. 2009-37 provides that a taxpayer make a Section Use a GeneralDependencyMedium to provide the statement. Describe it as “Section 108(i) Election.”                                     Because this election is only valid for
                                                                              108(i) election to defer cancellation of debt (COD) income in                                                                                                                                    transactions occurring in 2009 and
                                                                              connection with an applicable debt instrument reacquired after                                                                                                                                   2010, a dependency will not be created
                                                                              2008 and before 2011 and include the deferred income over a                                                                                                                                      for this election.
                                                                              5-year period by attaching a statement to the taxpayer’s timely
                                                                              filed (including extensions) original federal income tax return
                                                                              for the taxable year in which the reacquisition of the applicable
                                                                              debt instrument occurs. Although the form instructions instruct
                                                                              an electing taxpayer to attach the election to its return, a
                                                                              dependency has not been created.

 Form 1120-F, Schedule   Schema elements for Part II, lines 15 - 20.          The schema elements for Part II, lines 15 - 20 are only             To report amounts in functional currency, use the sequence for Part I with amounts in U.S. Dollars. Submit a          Corrections will be provided in a future
 H                                                                            available when a choice is made for Part I with amounts in          GeneralDependencySmall at the form level with an explanation that amounts reported on Form 1120-F, Schedule H, Part I release.
                                                                              U.S. Dollars and are not available when a choice is made for        are in functional currency. Describe the dependency "Form 1120-F Sch H functional currency".
                                                                              Part I with amounts in functional currency.
 Form 1120S              Form 1120S, Schedule K, Line 10                      Rev. Proc. 2009-37 provides that a taxpayer make a Section          Use a GeneralDependencyMedium to provide the statement. Describe it as “Section 108(i) Election.”                            Because this election is only valid for
                                                                              108(i) election to defer cancellation of debt (COD) income in                                                                                                                                    transactions occurring in 2009 and
                                                                              connection with an applicable debt instrument reacquired after                                                                                                                                   2010, a dependency will not be created
                                                                              2008 and before 2011 and include the deferred income over a                                                                                                                                      for this election.
                                                                              5-year period by attaching a statement to the taxpayer’s timely
                                                                              filed (including extensions) original federal income tax return
                                                                              for the taxable year in which the reacquisition of the applicable
                                                                              debt instrument occurs. Although the form instructions instruct
                                                                              an electing taxpayer to attach the election to its return, a
                                                                              dependency has not been created.

 Form 3115               IRS3115                                              There was a revision of form 3115 for the consent to Change a       For returns filed after May 31, 2010 form 3115 must be submitted as a PDF. Please name the PDF "Form3115.pdf, and use Schema changes for form 3115 will
                                                                              method of accounting for federal income tax purposes. To            description "Form 3115.pdf"                                                                                           updated for TY2011/PY2012.
                                                                              allow a reasonable transition to the new revision, the IRS
                                                                              accepted either the 2003 or 2009 revision of form 3115
                                                                              through May 31, 2010. Due to this allowance the schema
                                                                              changes are not available for TY2010. The schemas will be
                                                                              updated for TY2011.
 Form 3800               Line 1l, Biodiesel and renewable diesel fuels        TY2010 Form 3800, line 1l, was recently revised to read:            The TY2010 stylesheet will be updated and posted to irs.gov.                                                                 The TY2010 MeF stylesheet will be
                         credit                                               Biodiesel and renewable diesel fuels credit (attach Form 8864)                                                                                                                                   updated and posted to irs.gov.
                                                                              . This change was not received in time for the TY2010 MeF
                                                                              stylesheet to be updated with the addition of "(attach Form
                                                                              8864). Taxpayers must attach Form 8864 to line 1l as
                                                                              specified in Form 3800 instructions.
 Form 4136               Lines 11a through 11h, and Line 14a                  For Form 4136, Lines 11a through 11h, and Line 14a, the form        Please use the xml schema "GeneralDependencySmall" to provide information for Form 4136 Type of Use 5 for Lines 11a The TY2010 MeF Schema will not be
                                                                              instructions require the taxpayer to provide a credit rate          through 11h, and Line 14 a. For each Type of Use 5 occurrence on these two lines, include the line number, e.g., 11a, 11f; updated for TY2010. Future schemas
                                                                              different from the one pre-printed on the form for Type of Use      the type of fuel, and the applicable credit rate provided in the form instructions. Describe the "GeneralDependencySmall" will be corrected.
                                                                              5. The TY2010 xml schema was updated to allow for a Type of         as “Form 4136 BUS Rates for Line 11 and Line 14”. The TY2010 MeF xml schema will not be corrected. Corrections will be
                                                                              Use 5; however, the schema does not allow the submission of         submitted for TY2011 to allow taxpayers to provide the special rates for Type of Use 5.
                                                                              the required credit rates.
 Form 4684               Form 4684 Stylesheet, Line 17                        Because of late legislation, the Form 4684 stylesheet will not      The TY2010 stylesheet may be used as is.                                                                                The TY2010 stylesheet will not be
                                                                              be updated with changes to line 17.                                                                                                                                                         updated but future tax year stylesheets
                                                                                                                                                                                                                                                                          will reflect Line 17 changes
                                                                                                                                                                                                                                                                          appropriately.
  Form 5471 Schedule J   Recently developed instructions for Form 5471        The recently released instructions for Form 5471 will be      Please use the xml schema "GeneralDependencySmall" at the Form 5471 level to provide information for Form 5471                A dependency will be added to the
                         include the following instruction for the Schedule   effective for Tax Year 2010. Because of this recent change, a Schedule J when the prior tax year's Line 7, Balance at end of year, is different from the current tax year's Line 1, Balance Form 5471 Schedule J schema for Tax
                         J, line 1: Enter the balances for each column at     dependency will not be created for tax year 2010.             at beginning of year. Describe the "GeneralDependencySmall" as "Form 5471 Schedule J Balance Difference Explanation". Year 2011.
                         the beginning of the tax year. If there is a
                         difference between last year's ending balance on
                         Schedule J, line 7, and this year's beginning
                         balance on Schedule J, line 1, attach an
                         explanation.
 Form 5471 Schedule M    The following lines were changed on the TY2010       The wording on these lines has changed to reflect Regulations The TY2010 xml schema and the stylesheet may be used as is.                                                                        The TY2010 xml schema and
                         Form 5471 Schedule M as follows:                     section 1.482-7T. Due to these late changes, the xml schema                                                                                                                                      stylesheet will not be updated. Future
                         Line 4: "Buy-in payments received" is changed to     and the stylesheet will not be updated with the new wording for                                                                                                                                  tax year schema and stylesheets will
                         "Platform contribution transaction payments".        TY2010                                                                                                                                                                                           reflect the changes.
                         Line 5: "Cost sharing payments received" is
                         changed to "Cost sharing transaction payments
                         received."
                         Line 16: "Buy-in payments paid" is changed to
                         "Platform contribution transaction payments
                         paid."
                         Line 17: "Cost sharing payments paid" is changed
                         to "Cost sharing transaction payments paid."



 Form 5884-B                                                                  For TY 2010, Form 5884-B will only be accepted in PDF.              Taxpayers who have to submit Form 5884-B in PDF format should name the PDF file "Form5884B.pdf" and describe it as           For TY2010, Form 5884-B will only be
                                                                                                                                                  "Form 5884-B".                                                                                                               accepted in PDF.
 Form 5713               Lines 2a and 2b                                      The schema does not allow the entry of a Social Security            When the use of a Social Security Number is required for the individual partners, attach a pdf document that includes this   The schema will be corrected to allow
                                                                              Number.                                                             information.                                                                                                                 the entry of the SSN in preparation for
                                                                                                                                                                                                                                                                               TY 2011. The choice will also be
                                                                                                                                                                                                                                                                               updated to EIN, SSN, or
                                                                                                                                                                                                                                                                               MissingEINReason.


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     Form Type         Schema/Schema Element                                   Description of the Problem                                                                         Temporary Solution(s)                                                                     Status


 Form 5713       PrincipalBusinessActivityDesc (Line 2c, Column 4 The character length for LineExplanationType is listed in the     There is no workaround for TY 2010.                                                                                      The schema will be corrected to allow
                 - Lines 8, 9, 10, and 13)                        schema as 35 characters instead of 100 characters.                                                                                                                                         a character length of 100 for
                                                                                                                                                                                                                                                             LineExplanationType in preparation for
                                                                                                                                                                                                                                                             TY 2011.
 Form 5713       PrincipalProductCodeDesc (Line 2d)                The character length for LineExplanationType is listed in the    There is no workaround for TY 2010.                                                                                      The schema will be corrected to allow
                                                                   schema as 35 characters instead of 100 characters.                                                                                                                                        a character length of 100 for
                                                                                                                                                                                                                                                             LineExplanationType in preparation for
                                                                                                                                                                                                                                                             TY 2011.
 Form 8820       Line 1, Qualified clinical testing expenses paid or TY 2010 Form 8820 schema does not require an attachment        Describle the "GeneralDependency" as Orphan Drug Statement                                                               The TY2010 Schema will not be
                 incurred.                                           of a statement for Line 1, Orphan Drug Credit Testing                                                                                                                                   updated. Future schemas will be
                                                                     Expenses included with Qualified clinical testing expenses                                                                                                                              corrected.
                                                                     paid or Incurred during the tax year. This change was not
                                                                     received in time for TY 2010 schema to be updated.
                                                                      Taxpayers must attach a statement showing the generic
                                                                     name, designation number and date the drug was designated
                                                                     under Section 526 of Federal Food, Drug and Cosmetic Act.

 Form 8832                                                         The instructions for Form 8832 (Rev. 1-2011) direct certain  Taxpayers to whom this instruction applies should use the “SpecialConditionDescription” on the parent form to enter “FILED   A field for this entry will be made
                                                                   taxpayers to write “FILED PURSUANT TO REVENUE                PURSUANT TO REVENUE PROCEDURE 2010-32".                                                                                      available in the Form 8832 schema for
                                                                   PROCEDURE 2010-32" across the top of Form 8832. The                                                                                                                                       TY 2011.
                                                                   current version of the Form 8832 schema does not provide for
                                                                   this entry.
 Form 8844       Form 8844, Lines 1, 2 and 9                       The TY2010 stylesheet available on IRS.gov does not reflect Follow the intent of the published form.                                                                                      This stylesheet has been updated on
                                                                   the verbiage for these lines as shown in the published form.                                                                                                                              IRS.gov.

 Form 8864       BiodieselAfter2008Gallons                         BiodieselAfter2008Gallons should be BiodieselGallons. Also, Please disregard the reference "After2008" on the element name in the schema.                                                 Corrections will be made in a future
                                                                   the description needs to match the Element name. After2008                                                                                                                                schema version.
                                                                   was removed from the element name.
 Form 8864       BiodieselAfter2008Amount                          BiodieselAfter2008Amount should be BiodieselAmt. Also, the Please disregard the reference "After2008" on the element name in the schema.                                                  Corrections will be made in a future
                                                                   description needs to match the Element name. After2008 was                                                                                                                                schema version.
                                                                   removed from the element name.
 Form 8864       BiodieselMixAfter2008Gallons                      BiodieselMixAfter2008Gallons should be BiodieselMixGallons. Please disregard the reference "After2008" on the element name in the schema.                                                 Corrections will be made in a future
                                                                   Also, the description needs to match the Element name.                                                                                                                                    schema version.
                                                                   After2008 was removed from the element name.

 Form 8864       BiodieselMixAfter2008Amt                          BiodieselMixAfter2008Amt should be BiodieselMixAmt. Also,        Please disregard the reference "After2008" on the element name in the schema.                                            Corrections will be made in a future
                                                                   the description needs to match the Element name. After2008                                                                                                                                schema version.
                                                                   was removed from the element name.
 Form 8900       Form 8900 Stylesheet, Line 11                     Due to late Form 8900 changes, the TY2010 stylesheet could       The TY2010 stylesheet will be updated with the latest Line 11 wording.                                                   The TY2010 stylesheet will be updated
                                                                   not be updated to reflect the Line 11 wording changes. The                                                                                                                                and posted to irs.gov.
                                                                   following wording was added to the official Tax Form 8900
                                                                   PDF, Line 11, after " …that began after 2007": "and
                                                                   carryback of the qualified railroad track maintenance credit
                                                                   from 2011 (see instructions)…"
 Form 8909       NumEligibleDishwashers (Line 1a)                  NumEligibleDishwashers should show Line 1 not Line 1a.           Please disregard the reference to "a" at the end of the line number in the schema.                                       Corrections will be made in a future
                                                                   Column A was removed.                                                                                                                                                                     schema version.
 Form 8909       AvgNumDshwshrPrdPr2Yrs (Line 2a)                  AvgNumDshwshrPrdPr2Yrs should show Line 2 not Line 2a.           Please disregard the reference to "a" at the end of the line number in the schema.                                       Corrections will be made in a future
                                                                   Column A was removed.                                                                                                                                                                     schema version.
 Form 8909       SubLn2aFrmLn1a (Line 3a)                          SubLn2aFrmLn1a should be SubLn2FrmLn1. Also the                  Subtract Line 2 from Line 1, as column a was removed.                                                                    Corrections will be made in a future
                                                                   description needs to match and Line number should show 3                                                                                                                                  schema version.
                                                                   not 3a. Column A was removed.
 Form 8909       MultLn3aByLn4a (Line 5a)                          MultLn3aByLn4a should be MultLn3ByLn4. Also the                  Multiply Line 3 by Line 4, as column a was removed.                                                                      Corrections will be made in a future
                                                                   description needs to match and the line number should show 5                                                                                                                              schema version.
                                                                   not 5a. Column A was removed
 Form 8909       TentativeCrdtForClothesWashers (Line 11)          The description should read "Total of columns 10a and 10b"       Add columns 10a and 10b to get the amount for Line 11 (TentativeCrdtForClothesWashers).                                  Corrections will be made in a future
                                                                   not "Total of columns 11a through 11d". The lines were                                                                                                                                    schema version.
                                                                   renumbered.
 Form 8909       TentativeCrdtForRefrigerators (Line 17)           The description should read "Total of columns 16a and 16b"       Add columns 16a and 16b to get the amount for Line 17 (TentativeCrdtForRefrigerators).                                   Corrections will be made in a future
                                                                   not "Total of columns 16a through 16d". The lines were                                                                                                                                    schema version.
                                                                   renumbered.
 Form 8923                                                         Because of late legislation, the Form 8923 stylesheet will not   The TY2010 stylesheet may be used as is.                                                                                 The TY2010 stylesheet will be
                                                                   be updated with changes to line 4.                                                                                                                                                        updated to reflect Line 4 change
                                                                                                                                                                                                                                                             appropriately.
 Form 8926                                                         An explanation of certain calculations on Form 8926 may be       If additional explanation of calculations is desired, attach a dependency at the parent form level titled "Form 8926     A dependency will be created for a
                                                                   appropriate.                                                     Calculation Explanation". To provide this statement, use a GeneralDependency for Form 1120 and a                         future release if required.
                                                                                                                                    GeneralDependencyMedium for Form 1120-F. Use "Form 8926" for the binary attachment description.




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