ty2007_update_known_e file_issues_solutions_08 24 2010

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					                                                                                                                              TY2007 Known e-file issues and solutions
                                                                                                                                                   Updated August 24, 2010




                   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 II   Schema will be issued in future release.
                                    no." has schema limitation                             Stockholdings at the beginning of the year is designed to indicate     complete the XML part II last column "Owned by corporation no.: for each applicable subsidiary by          Continue to use workaround.
                                                                                           the affiliated member from Part I for which the Stockholdings          entering the corporation number for the affiliated member with the majority ownership. If there is no
                                                                                           information is being reported in Part II. Currently the schema only    majority owner, use the owner's number that comes first in Part I. Provide a PDF Form 851 Part II
                                                                                           allows one corporation number to be entered for this element.          showing the information for all the owners for each subsidiary. This PDF file should be attached to 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 Country"                eFileTypes schema will be corrected in a
                                                                                           as "OC" and the eFileTypes schema erroneously reflects "Other not listed elsewhere.                                                                                               future TY2008 schema release.
                                                                                           Country" code as "XX". The eFileTypes schema will be updated                                                                                                                      Continue to use workaround.
                                                                                           to remove "XX" and add "OC" for "Other Countries".




             Form 1118 Schedule A   Missing write in choices on Form 1118 Schedule A       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
                                                                                           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 1              future release. Change submitted. Will
                                                                                           new write-ins are missing from the XML schema. They                    workaround" as the description.                                                                            be in future TY2008 schema release.
                                                                                           are: "NOLs", "income from RICs", and "high-taxed income" (see                                                                                                                     Continue to use workaround.
                                                                                           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 taxes        If the taxpayer needs to report carryover of foreign taxes as instructed on Schedule B (Form 1118) as Will be revised in TY2008 schema
                                    on Schedule B (Form 1118) Part II line 4               data on Schedule B (Form 1118) part II line 4                          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 a      future TY2008 schema release.
                                                                                                                                                                  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 5
                                    Missing literal write-in indicator on Schedule B (Form 1118) line Instructions for Schedule B (Form 1118) instruct            Taxpayers who need to reclassify high-taxed income from passive category income to general category        Literal write-in indicator will be added to
                                                                                           taxpayers reclassifying high-taxed income from passive category        income, as instructed on Schedule B (Form 1118) line 5, should include this amount in the line 5 total,    schema in a future release. Change
                                                                                           income to general category income, to include the related tax          and use the General Dependency schema to indicate the high tax kick out. The Description of the            submitted. Will be in future TY2008
                                                                                           adjustment in the line 5 total. The taxpayer is also instructed to     General Dependency should be "Schedule B (Form 1118) Line 5 HTKO".                                         schema release. Continue to use
                                                                                           "enter" on the dotted line to the left of the entry space for line 5                                                                                                              workaround.
                                                                                           "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,
                                    Missing literal write-in indicator on Top of form Schedule J (Form 1118) the 2007 Instructions for Schedule J (Form           Taxpayers who choose to follow the principles of Notice 89-3,1989-1C.B. 623, rather than applying the      Literal write-in indicator will be added to
                                                                                           1118) instruct taxpayers to make the following notation on the top     Temporary Regulations section 1.904(g)-3T to their 2007 tax year should use the General Dependency         schema in a future release. Change
                                                                                           of Schedule J: "U.S. Loss Allocation Under Notice 89-3" if a           schema and use "Top of Schedule J notation: "U.S. Loss Allocation Under Notice 89-3"                       submitted. Will be in future TY2008
                                                                                           corporation chooses to follow the principles of Notice 89-3, 1989-     workaround" as the description.                                                                            schema release. Continue to use
                                                                                           1C.B.623, rather than applying the Temporary Regulations                                                                                                                          workaround.
                                                                                           section 1.904(g)-3T to its 2007 tax year.




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




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                    Form Type                        Schema/Schema Element                                                                                                                                  Work-Around                                                                        Status




             Form 1120                   Paid preparer information                       When any paid preparer information is included in the electronic     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
                                                                                         file, SSN/PTIN is a required field. But foreign preparers do not     schemas, in the case of foreign return preparers, the preparer name and SSN/PTIN may be left blank in          allow an indication that a foreign
                                                                                         have these numbers assigned to them.                                 the XML file. The preparer can sign the return and supply the firm’s Employer Identification Number            preparer was used. Continue to use
                                                                                                                                                              through the Form 8453-C, filed as a PDF attachment with the corporation's electronically filed income          workaround.
                                                                                                                                                              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 "USAmountNNType".     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                                                              This will be changed to "USAmountType" to allow both negative        dependency xml schema and use "IRS 1120 Schedule M3 Part II Line17a workaround" as the                2007 in version TY2007v2.4
             Adjustments                                                                 and positive numbers in the Schedule M3 (Form 1120)                  description. Currently, Form 1120, Sch M-3, Part II, Line 17a only allows non-negative numbers. Enter
                                                                                         "Eliminations Or Adjustments" schema.                                the negative number in the General Dependency. Make a book adjustment to move the Cost of Goods
                                                                                                                                                              Sold and then document the book adjustment to show that the change was made only to facilitate
                                                                                                                                                              electronic filing of the return.




             Form 1120 Amended           Form 1120 Amended Return - 1120 Form Level      LMSB Directive on Examination Action with Respect to Certain         Taxpayers who electronically file may fulfill the requirement to mark "Filed pursuant to Directive of  As the duration of this directive has not
             Return                                                                      Gain Recognition Agreements provides guidance to taxpayers to        Examination Action with respect to Certain Gain Recognition Agreement” at the top of the amended       yet been determined, no schema
                                                                                         mark "Filed Pursuant to Directive of Examination Action with         return by attaching a General Dependency and entering "GRA Directive” in the Description field of the changes will be at this time.
                                                                                         respect to Certain Gain Recognition Agreement" at the top of the     1120 return with the amended return checkbox checked. In addition, taxpayers must enter "Filed
                                                                                         amended return.                                                      pursuant to Directive of Examination Action with respect to Certain Gain Recognition Agreement” in the
                                                                                                                                                              explanation (attachment information) field of the General Dependency.




             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 1120- 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         F or Schedules M-1/M-2, M-3, H, I or P, use the General Dependency and title the Dependency             TY2008 schema. Continue to use work
                                                                                         required schedules, elections or statements may be missing from appropriately.                                                                                          around.
                                                                                         the schemas.


             Form 2220, Schedule A       "First4MonthsTotalTaxableIncome"                The efile type in version 2.3 calls for a "LargeRatioType" in error, Since there should not be any entries on line 9b until later in the year, line 9a and 9c should have the The schema has been corrected for TY
             Part I, Line 9c columns a   "First6MonthsTotalTaxableIncome"                the correct efile type should be "USAmountType" on all 4             same entries on them. Please make line 9c a redundant data field and pick up the amount from line 9a 2007 in version TY2007v2.4
             through d                   "First9MonthsTotalTaxableIncome"                columns for 9c.                                                      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, 11, Use the General Dependency and describe it "Form 4136 Line 8d(a) Type of Use Workaround".                            The schema will be changed to allow for
                                                                                         13, 14, 15 which are related to Aviation Grade Kerosene.                                                                                                                            both Aviation Grade Kerosene Type and
                                                                                         Taxpayers need to be able to insert Type of use codes for both                                                                                                                      Noncommercial Aviation Kerosene
                                                                                         Aviation Grade Kerosene and Noncommercial Aviation Kerosene                                                                                                                         Type. This change will be submitted
                                                                                         (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 for
                                                                                         have a 2007-2008 fiscal tax year; and wish to take advantage of      a) FY filers may continue to efile Form 4562 (TY2007v2.3) instead of the new F4562-FY but must                 Form 4562-FY. However, with incorrect
                                                                                         the new 50-percent special depreciation allowance for property       ensure that their calculations for Line 14 and 25 on page 1 are correct.                                       maxInclusive values on lines 1 and 3.
                                                                                         that was placed in service after December 31, 2007. This             b) FY filers, who can wait until the TY2007v2.4 schema is available, can submit the F4562-FY; however,         Corrected Form 4562-FY TY2007
                                                                                         provision was added by Act section 103 of P.L. 110-185, the          only if the maxInclusive values on lines 1 and 3 are not exceeded. Forms with higher values will reject.       schema, without the erroneous
                                                                                         Economic Stimulus Act of 2008. On page 1, Line 14, and on            FY filers also have to ensure that the F4562-FY is attached at the Return level, not the line level. The       maxInclusive values on lines 1 and 3,
                                                                                         page 2, Line 25 were revised to provide space for this “bonus        TY2007v2.3 schema version does not include these errors and some taxpayers may be able to submit               will be available in the near future.
                                                                                         depreciation.” Details will be provided in the instructions. We      their returns using this prior schema version.                                                                 Corrected in TY2007v2.5. As of Jan
                                                                                         have several schema issues relating to Form 4562-FY.                 c) Some FY filers may be able to wait with their tax return submission until the corrected schema version      2009, Form 4562-FY will no longer
                                                                                         Issue 1: Form 4562-FY schema is not available until beginning        is avaiable on irs.gov. d) FY filers who cannot wait until the corrected schema version, without any           apply.
                                                                                         of June 2008 - TY2007v2.4.                        Issue 2: The xml   maxInclusive values, is available, may provide their maxInclusive values in a General Dependency and
                                                                                         schema for new Form 4562-FY - TY2007v2.4 contains                    attach it to the return and use "Form 4562-FY, Part I, lines 1 and 3, workaround" as the Description.
                                                                                         erroneous maxInclusive values on lines 1 and 3.                      Filers must indicate in this dependency which line the amount(s) apply to.
                                                                                         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.




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




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                    Form Type              Schema/Schema Element                                                                                                                                    Work-Around                                                                Status




             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 blank.     Will be corrected in future schema
                                                                                   Page 1, Line 2a of the form.                                         Enter the person's name. Then on the same line, enter the letters "SSN" and the Social Security     release. Continue to use workaround.
                                                                                                                                                        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 “No”, The changes will be made in a future
                                                                                   required. Line 13a is not required if the answers to Lines 11 and then you can attach Form 5713 as a .pdf. Use "Form 5713 Document" as the Description for the .pdf       schema release
                                                                                   12 are both "No.".                                                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 is to   GeneralDependencySchema and reference it from the line indicated below for that applicable form. The
                                                                                   be included on the same line as the Qualified Electric Vehicle       “write-in” explanation on this schema must be described as Form 8835 Credit Amount the “write-in”
                                                                                   Credit and identified by a “write-in” explanation.                   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 statements Workaround" in the General Dependency.                                                                      posting. Continue to use workaround.
                                                                                   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.




             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 been   This dependency will be updated with
                                Schedule B, Line 4: Schedule B, Line 7: Schedule   missing necessary efiletypes (APPLIED FOR" or                        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 "Form A dependency will be created for this line
                                ShortExplanationType                               Benefits Description. The ShortExplanationType only allows           8886 Expected Benefits Workaround" as the Description.                                               and published in a future schema
                                                                                   1000 characters. The efile type will stay the same; however we                                                                                                            posting for TY2008. Change submitted.
                                                                                   will attach a dependency at this line for additional explanation.                                                                                                         Will be in future TY2008 schema
                                                                                                                                                                                                                                                             release. Continue to use workaround.




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