ProSystem fx Tax Rises to 2005 Business Return Challenges
(SCOTTSDALE, ARIZ., November 8, 2005) – Requirements are ramping up for corporations and their accountants filing federal and state income tax returns. ProSystem fx Tax from CCH, a Wolters Kluwer business (CCH) is ramping up as well, to save professionals time and ensure accurate, efficient return processing. CCH is a leading provider of tax, accounting and productivity software and services (tax.cchgroup.com).
“Every year there are new challenges for corporate filers, and that’s what we’re here for. Whether it's electronic filing, new schedules or new options, our closeness to our customers and our strong working relationships with the IRS produce solutions that make challenges more manageable, or even turn them into opportunities,” said Mike Sabbatis, CCH vice president of sales and marketing.
ProSystem fx Tax will offer expanded new forms schedules and M3 calculations; new tiered consolidated and stacked statement capability; and new domestic production activities deduction (DPAD) capability.
Electronic Filing, New Forms
A leader in electronic filing solutions, ProSystem fx Tax will expand electronic filing of corporate returns in 2005 to include federal extensions, consolidated corporation returns and returns for 16 new states: Alabama, California, Florida, Georgia, Illinois, Kansas, Louisiana (return and extension), Maryland (return and extension), Missouri, New Jersey, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah (return and extension) and Wisconsin.
In addition, S-corp returns can be filed in 2005 for federal extensions and for Georgia, Kansas, Louisiana (return and extension), Maryland (return and extension), New Jersey 1080-C (on diskette), North Carolina, South Carolina, Utah (return and extension) and Wisconsin.
Also new for 2005, PDF files may be attached to federal returns filed using Internal Revenue Service Modernized e-File (MEF). This includes Corporations, S Corporations, Exempt Organizations and Private Foundation returns.
“Based on recent information gathered from the IRS meetings, CCH expects to add 12 additional states to the suite of corporate state electronic filing products in 2006. ProSystem fx Tax stays current with all state electronic filing requirements and produces returns for all states that offer it,” Sabbatis noted.
In addition, CCH is adding Form 1120-IC-DISC and Form 8895 (for the one-time dividends received deductions from controlled foreign corporations) and updating dozens of interview forms and worksheets to keep pace with ever-changing tax laws.
“We make hundreds of seemingly minor changes and improvements every year to make sure that our users have the best possible experience,” Sabbatis said.
Domestic Production Activities Deduction
One new opportunity for corporations for 2005 is a domestic production activities deduction created by the American Jobs Creation Act of 2004 and reported on the new Form 8903.
Sometimes thought of as an incentive for the creation of domestic manufacturing jobs, the deduction actually applies to a wide range of companies and can produce significant tax savings. But with this gain comes the potential pain of calculating the deduction – something that is still a work in progress as the IRS crafts forms and instructions to fit the language of the legislation.
“While this is an area that is subject to rapid change, we have positioned ourselves to react to changes dictated by the release of instructions and regulations,” Sabbatis said. “We’ve been actively working with the IRS and customers to develop a comprehensive DPAD program for 2005 returns.”
The domestic production activities deduction will be calculated on Form 8903 using data entered on new Interview Forms and Worksheets.
“We’re working hard to make sure that users get all the tax benefits this provision offers with the least possible aggravation,” Sabbatis said.
An ongoing concern this year for large and mid-sized businesses is Schedule M-3, which among other things breaks out any difference between tax and book amounts, and categorizes differences as “temporary” or “permanent.” ProSystem fx Tax is continuing to expand and improve the calculation for this schedule.
The book amount will be calculated from entries for tax, temporary and permanent difference. Alternatively, if users enter the book amount in the “book” field, that entry will be used for the calculation, and any book/tax differences will be included in the temporary difference amount.
Enhanced Consolidated Return Processing
ProSystem fx Tax continues to respond to customer requests for easy-to-understand and easy-to-use output for consolidated returns with two new options for 2005.
With the “Tiered Consolidation” option, the lower level consolidated return is included in the upper level consolidated return, maintaining all of the detail of the separate companies from the lower level consolidated return. With the “ Stacked Supporting Statements” option, statements will be produced at the main return level, eliminating the need to go to consolidated statements to review amounts.
“This is one more case where we’ve put our capabilities at the service of ProSystem fx Tax users, offering options that they’ve asked for to make their work easier,” Sabbatis noted.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (www.tax.cchgroup.com), is a leading provider of tax, audit and accounting information, software and services. It has served tax, accounting and business professionals and their clients since 1913. Among its market-leading products are The ProSystem fx® Office, CCH® Tax Research NetWork™, Accounting Research Manager™ and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill.
Wolters Kluwer is a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2004) of €3.3 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands (www.wolterskluwer.com). Its depositary receipts of shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.
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