Tax Return Processing Capabilities

We provide comprehensive tax compliance with an Organizer approach to data entry and management. Organizer is the central data collection site for GoSystem Tax. A basic set of data from the federal entries carries to state returns.

Special state allowances and reporting requirements are built into the software. This information is supplemented by entering additional detail into the Organizer.

Tax Applications

Federal, state, city, and municipal tax returns for 1040, 1065, 1065 Allocation and Apportionment, 1120, 1120S, 1120-C, 1120F, 1120-H, 1120-L, 1120-PC, 1120-RIC, 1120-REIT, 1120 and 1120S consolidations, 1120 Allocation and Apportionment
Federal and state tax returns for 1041
Federal and selected states for 990
Federal and selected states for 706
Federal and selected states for 709
Federal 5500 returns
Federal e-file: 1040, 1041, 1065, 1120, 990, and 5500
State e-file: 1040, 1041, 1065, 1120, and 990
Comprehensive diagnostic reports for all tax returns with drill-down capability to data in question
Transmittal letters and filing instructions
Automated IRS Service Center determination
Hyperlinks – ability to trace output amounts to source data
Workpapers
Organizer and tax forms
Print preview
Batch estimates and extensions
Batch Organizer print (color selections available)
Tax equalization
MyTaxInfo

1040 Individual

1040 Federal

Depreciation capabilities with retirement of assets to Form 4797, bulk asset sales, investment tax credit recapture, and depreciation adjustments and preferences for alternative minimum tax
Application of the limitation on investment interest expense with disallowed interest allocated to the appropriate forms and schedules
Computation of the limitation on passive loss and allocation of limited loss to the applicable passive activities, with passive activity worksheets printed on IRS form facsimiles
Complete depletion capabilities with automatic computation of 65% limitation
Computation of carryovers for regular and alternative minimum tax
Supporting detailed whitepaper statements for all return items, including Schedule K-1 allocations
Recalculation of Schedule D and Forms 1116, 4797, 4952, 6198, 6252, 8582, and 8824 for alternative minimum tax
Numerous options for computing Form 1040ES and applying overpayment
Numerous options for computing Form 2210 and optimizing lowest penalty
Comparative schedule of current and previous-year income, expenses, and taxes
Computation of the at-risk limit based on both regular tax and alternative minimum tax basis
Optional computation of depreciation for the following year
Separate returns from joint data (creating married filing separate returns from an existing married filing joint return)
Property forms
Foreign tax withheld on dividends option
E-file
Customizable Transmittal Letter
Summary Tax Payment Schedule
Amended return option
Automatic “Kid Tax” computations
Ability to import K-1 information from partnership returns and fiduciary returns created with our software
Word wrap functionality in footnotes
Compliance with the IRS K-1 Matching program
Optimization of education credit and deduction
Analysis of state tax refund received in the current year when the taxpayer paid AMT in the prior year and no taxable benefit was derived in the prior year

1040 State

Automatic carry of federal amounts to the resident state return
Attachment of required federal forms to the state return
Ability to enter state information on federal Organizer screens with automatic carry of the amounts to a specific nonresident or part-year resident state
Phase-out of exemptions and itemized deductions for taxable income above specified levels on states that require the calculation
Calculation of depreciation adjustment for states that do not follow federal law
Allocation of federal amounts to taxpayer and spouse on applicable states
Optimization between filing a joint state return or a split state return
Computation of the passive loss limitation on a state basis for those states requiring a calculation different from the federal calculation
E-file for all states that allow e-file
Word wrap functionality in footnotes
Two-year comparison

1041 Fiduciary

1041 Federal

Beneficiary tax information letters, agent/custodian tax information letters, and grantor tax information letters
Numerous options for tax information letter presentation and computation
Numerous options for computing Form 1041ES and applying overpayment
Numerous options for computing Form 2210 and optimizing lowest penalty
5227 Split-Interest Trust produced
Depletion capabilities with automatic computation of 65% limitation
Computation of carryovers, limitations, and tax credits
Calendar-year or fiscal-year returns
Computation of net investment income for investment interest expense limitation and alternative minimum tax
Computation of tax preference items for alternative minimum tax
Retirement of assets from depreciation schedules
Schedule J letters for reporting accumulated income distribution to beneficiaries
Accommodation letters for reporting payments made on behalf of beneficiaries, which may be necessary for 1040 tax return preparation
Special allocations to selected beneficiaries (of selected Schedule K-1 items)
Carryover of 5227 and 1041-A ending balances
Netting of gains and losses on disposition of passive activities
Computation of the limitation on passive loss and allocation of limited loss to the applicable passive activities, with passive activity worksheets printed on IRS form facsimiles
Optional computation of depreciation for the following year
Recalculation of Schedule D and Forms 1116, 6198, and 8582 for alternative minimum tax
E-file
Two-year comparison
1041 to 1040 K-1 transfer

Estate planning products are also available through Thomson Reuters. Contact your Account Representative for additional information.

1041 State

Automatic carry of federal amounts to the resident state return
Multiple states with a single federal tax return
Estimated tax vouchers and application of overpayment in certain states
Adjustments of depreciation and depletion in selected states
Automatic adjustments (additions and subtractions) from the federal return
Automatic allocation of adjustments to beneficiaries
Attachment of required federal forms to state return
Computation of passive loss limitations on a state basis where required
Multistate summary reports for amounts due/overpayment and estimated voucher amounts
Selected state e-file

1065 Partnership

1065 Federal

Import and export of partner data and/or special allocations
Depreciation capabilities with retirement of assets to Form 4797, investment tax credit recapture, and depreciation adjustments and preferences for alternative minimum tax
Calendar-year, fiscal-year, and short-year returns
Recalculation of Forms 4797, 4684, and 6252 for alternative minimum tax
Residual, piggyback, and special allocation options
Ability to set up optional allocation and special allocation ratios to be used on multiple items
Component allocation of all Schedule K line items
Section 754 basis adjustment
Complete depletion computations and limitations
Standard or customized partner letters
Ability to tie each gain (loss) to any activity
Automatic computation of self-employment income
Transfer of interest option for withdrawing partner(s)
Computation of Section 704(b) capital account balances
Computation of tax preference items for partners’ alternative minimum tax calculation
Separate depreciation schedules for tax, alternative minimum tax depreciation, depreciation projections, and ACE depreciation
Bulk sale calculations
Partner footnotes with and without amounts and allocation to all or selected partners
Extensive whitepaper print options
Schedule K-1 facsimile input for income from other pass-through entities
E-file in accordance with IRS guidelines
E-file XML Viewer/Verification
Word wrap functionality for Partner Footnotes Without Amounts
1065 to 1065 K-1 transfer
1065 to 1040 K-1 transfer
1065 to 1120S K-1 transfer
1065 K-1 print package
Partner letters
Federal partner book/tax basis summary schedule
Federal partner book/tax basis schedules for regular tax purposes
Federal partner tax basis schedules for alternative minimum tax purposes
Two-year comparison

1065 State

Unlimited multiple states processed with a single federal tax return
Adjustments of depreciation and depletion
Automatic flow to states of items specially allocated at the federal level
Computations for nonresident partners
Exclusion of interest received on federal obligations from state taxable income
Schedule K-1 Equivalent for most states or cities that do not have their own Schedule K-1
Standard filing instruction options for states that do not require a state return, but do require a copy of the federal 1065 return
Selected state e-file
Automatic attachment of required federal forms to the state return
Selected state partner tax basis schedules

1065 State Allocation and Apportionment

Distribution of common state data to all state returns rather than entering information one state at a time
Computation results display as they actually appear, prior to being carried to state returns
Ability to perform allocation and apportionment tasks independently or in conjunction with other state tasks
Ability to enter sales, property, and payroll data manually in one central area
Exclusion of states as appropriate

1120 Corporate

1120 Federal

Single entities with unlimited detail
Consolidation of data from parent and subsidiaries
Computation of eliminations and adjustments on consolidated returns
Online display of adjustments for consolidated returns
Complex multitier consolidations
Calendar-year, or fiscal-year, short-year, or 52-53 week returns
Bulk sale calculations
Computation of carryovers, limitations, and tax credits
Calculation of appropriate limitations for contributions, capital loss carryovers, NOLs, and various credits
Accrual of bad debts
Depreciation capabilities, including alternative minimum tax and ACE preferences book-to-tax depreciation and automatic retirements
Depreciation and federal tax automatic accruals
Computation of the limitation on passive loss and allocation of limited loss to the applicable passive activities, with passive activity worksheets printed on IRS form facsimiles
Complete depletion capabilities with automatic computation of 65% limitation
Federal consolidated divisional roll-up into legal entity
Schedule N-Foreign Operations for U.S. Corporations for 1120, 1120-PC, 1120-L, 1120-RIC, 1120-REIT, and 1120S returns
Section 382 loss carry-forward input and schedules to Form 1120 and Form 4626, including input for Section 382 NOL utilization on parent and subsidiaries
Input for Non-SRLY NOLs and contribution utilization for parents and subsidiaries
Two-year comparison
E-file in accordance with IRS guidelines
E-file XML Viewer/Verification

1120 State

Computation of state income and selected franchise tax returns for calendar-year and fiscal-year states
Separate and selected combined/consolidated states processing, including unitary state tax returns
State tax accrual for 1120 and 1120S returns
Automatic combination of data from parent and subsidiaries (consolidation/combination)
Automatic state depletion
Eliminations and adjustments computations on combined/consolidated returns
Preparation of complete returns for each subsidiary and division
Automatic attachment of required federal forms to the state return
Automatic calculation of depreciation adjustments for states that do not follow federal law
Automatic carry of federal amounts to state returns
Selected state e-file

1120 State Allocation and Apportionment

Ability to distribute common state data to all state returns, including combined and unitary returns
Display of allocation and apportionment computation results as they actually appear before they carry to the state return
Ability to perform allocation and apportionment tasks independently or in conjunction with other state tasks
Ability to manually input sales, property, and payroll data
Ability to DIF import allocation and apportionment information
Option for rental companies to include rents in the sales factor
Ability to change the default from 100% to 0%
Prevention of Allocation and Apportionment from flowing to a selected state
On-screen help for partnership categories, which directs users to screens and enables the flow of information

1120S

Import and export basic shareholder data
Calculation of weighted average shares-per-day for up to 24 periods (calculates both cumulative shares and ownership percentages per period per shareholder)
Computation of pro-rata allocations to shareholders for any Schedule K item by dollar amounts or specified percentages, including residual and piggyback allocations
Non-adopting states
Property-by-property detail for rental income, including automatic calculation of amounts prior to and after 10/22/86 for reporting to shareholders
Provision for computation of built-in gains tax, passive income tax, and capital gains tax, including 1120 taxable income limitations
State Schedule K-1 Equivalent
K-1 facsimile input for income from pass-through entities
Include qualified subchapter S subsidiaries (QSSS) with parent return
Shareholder basis tracking
Selected state e-file

1120 Insurance

1120 Property and Casualty

Computation of alternative tax for small companies as defined in IRC Section 831(b)
Provision for subgroup consolidations for 1120 Property and Casualty
Computation of earned premiums as described in IRC Section 832(b)(4) and provision for amortization of the disallowed portion of unearned premium liability
Computation of Loss Reserve Discounting and Salvage and Subrogation by lines of business

1120 Life

Provision for subgroup consolidations for 1120 Life Insurance
Computation of life company qualification test.
Computation of small life insurance company deduction
Computation of amount subtracted from policyholder’s surplus account
Computation of the capitalization and amortization of policy acquisition expenses as defined in Section 848

990 (Federal and Selected States)

Depreciation computations, including retirement of assets
Calendar-year or fiscal-year returns
Standard or customized filing instructions
Multiple federal return types
Calculation of federal estimates
Underpayment of estimated tax penalty
Carryover of ending balance sheet book value
Batch estimates and extensions
Optional computation of depreciation for the following year
E-file
Word wrap functionality

706 (Federal and Selected States)

Calculation of tentative tax
Calculation of adjustment to unified credit
Calculation of credit for state death taxes
Calculation of net estate tax
Calculation of generation-skipping transfer taxes
Section 4980A increased estate tax
Word wrap functionality
Detail for explanation of prior payments
Selected states

Thomson Reuters also offers estate planning products. For additional information, contact your Account Representative.

709 (Federal and Selected States)

Calculation of tax on total taxable gifts
Calculation of tax on total amount of taxable gifts of prior periods
Calculation of unified credit
Calculation of generation-skipping transfer taxes
Calculation of taxable gifts
709 Summary Page
Word wrap functionality
Footnotes and letters
Selected states

Thomson Reuters also offers estate planning products. For additional information, contact your Account Representative.

5500 (Federal)

E-file
Summary annual report

Thomson Reuters also offers additional pension and benefit planning products. For additional information, contact your Account Representative.

RS Resources/tax_return_processing.htm/TY2021

Last Modified: 06/30/2020

Last System Build: 09/25/2022