Tax law changes

Has any seen their tax software systems updated with the changes from February 9th's news? I haven't heard when the changes would be implemented and can't seem to get into Proseries support to find out and no luck googling it.

Thanks

Not a peep.
Nothing in the papers, even....like it hasn't really happened.

Okay, thanks.

TR added this News item to UltraTax on Tuesday:

"At this time, the IRS has not released updated 2017 versions of these affected forms. In addition, Thomson Reuters anticipates the IRS will be updating related XML schema information and business rules (reject criteria) for Modernized e-File (MeF) purposes. Once released by the IRS, these updated forms and related input screen changes will be incorporated into a future update of UltraTax/1040."

And while it says changes will be incorporated in a future update, I did notice the Tuition and Fees deduction was once again calculating yesterday.

I just received an email from NATP that contained this:

The IRS has issued the following statement in regard to the Bipartisan Budget Act of 2018:

The IRS is reviewing the legislation signed Feb. 9 that retroactively extended and modified numerous tax provisions covering 2017. We are assessing these significant changes in the tax law and beginning to determine next steps. The IRS will provide additional information as quickly as possible for affected taxpayers and the tax community.

NATP attended today’s NPL Practitioner Meeting with the IRS — it was noted that if a taxpayer has already filed and they are affected by an extender provision, they should file a 1040X even if it’s before the filing deadline. A second original return could be flagged as a fraudulent return — do not file a superseded return.

NATP recommends that the taxpayer not file the 1040X until they receive their refund or their tax payment has been cleared as to not have anything get crossed in the mail.

>> do not file a superseded return.
Yes IRS is challenging many of these superseded returns filed in paper. I recommend 1040-X too.

>> do not file a superseded return.
Yes IRS is challenging many of these superseded returns filed in paper. I recommend 1040-X too.

I just received an email from the IRS (a bulletin that I subscribe to) and they instruct that superseded returns NOT be filed because they may be suspected of being due to identity theft. 1040X is the way to go.

TR added this News item to UltraTax on Tuesday:

"At this time, the IRS has not released updated 2017 versions of these affected forms. In addition, Thomson Reuters anticipates the IRS will be updating related XML schema information and business rules (reject criteria) for Modernized e-File (MeF) purposes. Once released by the IRS, these updated forms and related input screen changes will be incorporated into a future update of UltraTax/1040."

And while it says changes will be incorporated in a future update, I did notice the Tuition and Fees deduction was once again calculating yesterday.

But you can’t efile that return correct? Or is UT allowing it.

Agree with JR.....it is like it has not even happened. Meanwhile my stack of returns I can’t file is getting big

Just received an email from NC Dept. of Revenue. On individual returns, NC begins with federal AGI. E-mail states that the NC General Assembly will convene on May 16 to determine if they will decouple from some of the new federal provisions. So basically, if we have someone that is subject to these extenders, or even the 2017 medical expense deduction of 7.5% of AGI for under age 65, we don't know what NC will allow. If we file, we may have to amend.

So FYI, don't forget about all of the states that may have to update their regs.

TR added this News item to UltraTax on Tuesday:

"At this time, the IRS has not released updated 2017 versions of these affected forms. In addition, Thomson Reuters anticipates the IRS will be updating related XML schema information and business rules (reject criteria) for Modernized e-File (MeF) purposes. Once released by the IRS, these updated forms and related input screen changes will be incorporated into a future update of UltraTax/1040."

And while it says changes will be incorporated in a future update, I did notice the Tuition and Fees deduction was once again calculating yesterday.

But you can’t efile that return correct? Or is UT allowing it.

Agree with JR.....it is like it has not even happened. Meanwhile my stack of returns I can’t file is getting big

I don't think so, but I haven't tried. I'm just grateful I can complete the return, review it with the client, and have it ready to file once the IRS is ready to receive it. This whole season is just nuts.

Seaside, in reality, though, how many returns will be affected? Certainly the medical expense one is big, and NC routinely decouples from depreciation but a lot of the extenders are either not relevant to regular taxpayers or are already decoupled for NC purposes. Or have I missed something?

The medical expense reduction to 7.5% of AGI, deduction of qualified tuition and expenses, deduction of MIP, and discharge of debt on qualified principal residence are the main ones. Granted it will not affect a lot of my clients, but it could for others.

I thought education expenses in NC had gone a few years ago. MIP and medical expenses will be the big ones, I think. I have one elderly client who is spending capital to pay medical expenses. It’s a big deal for her.