KenO

Yes, we recently started using it as a replacement for SafeSend. So far, it's been easy for us to administer, and the clients have found it easy to use.

As I understand the January 15th deadline was eliminated in the updated instructions released in January. The notification to partners can now be made as late as when the partnership/S-corp furnishes Schedule K-1 to its partners and can be provided as an attachment (footnote) to the Schedule K-1. The example I saw used verbiage along the lines of the "the company has determined it has met the necessary exceptions and will not issue schedule K-3 unless the shareholder requests it within one month of the company filing its Form 1120-s" or something like that as best I can remember.

Client died in 2021 and his investments passed through his trust long-enough to generate a whopping $2 of dividends. It would seem no trust return is necessary with that income, but the attorney did file for an EIN so is it advisable to file an initial and final return to be sure the IRS knows its closed out?

Thanks,

Should it be entered as Other income subject to SE rather than business income? Do they actually have a business?

I believe the character remains as IRA income which is non-taxable in IL. I presume the K-1 is showing this as portfolio income? If so, the K-1 preparer should have included a footnote that discloses the nature of the portfolio income. If you have a copy of the 1099-R to the trust that could be used as support if Illinois questions the deduction.

As it currently stands this is what the ATX knowledge base says about the topic: 

ATX™ and TaxWise® will not be supporting Schedules K-2 or K-3. If you need to file these forms, please reach out to your account manager for information on using CCH® ProSystem fx® Tax or CCH Axcess™ to access these forms.

I have many clients with multiple brokerage accounts and frequently report the aggregate totals of covered transactions on Sch D as long as there are no adjustments. 

Take a look at IL Sch B, Page 2 column F to indicate that the member is a resident. That seems to eliminate the PTE calculation and you don't need to check the box on Step 1 Line L.

Yes, thanks for pointing this out. It does seem like they have it backward. Have you submitted a support case?

Not quite the editor that we might want, but at the bottom of the K1 Global Info Tab there is a link that takes you to Schedule K. For an S-corp scroll down to the Other information section,  line 17AD (partnerships are 20AH) and you can enter a note in there. 

Looks like they just issued guidance yesterday. IL will not tax the untax benefits, and they are looking into adjusting already filed returns :

https://www2.illinois.gov/rev/Pages/American-Rescue-Plan-Act-of-2021---Nontaxable-Unemployment-Benefits.aspx

I think what your looking for in ATX is Sch CA 540NR part 2 where you can jump from column E CA amounts to a schedule called part II - Sections A and B 540NR Column E income adjustments.  (Looking at ATX 2018, I'm not sure if any changes for 2019).

Ran into that problem yesterday. Found this on the official support forum which corrected the problem.  https://support.cch.com/sfs/solution/000096111/000096111?q=Problem_Resolution_Article_Type__kav

I have heard IL started mailing these notices this year, but have not had a client report receiving one, yet. Some of the triggers mentioned were not taking the homeowners exemption or instances where the property is held in trust, or where a home was purchased/sold during the year.

Use a 2nd W2 input sheet for the additional codes. Move $1 from box 1 wages on the 1st input sheet to box 1 on the 2nd w2 input sheet or ATX will not transmit it.

I think Abby is referring to right-clicking on an input cell and choosing the menu item Insert/Edit note.

To e-file a 1041 is the fiduciary SSN required on the Auth Info tab? I have a trustee that doesn't want to provide it so I'm afraid I'll be stuck paper filing.

Thanks,

Ken

You can make the error go away by overriding 19B. The problem has been noted on the ATX Community Board and reported to development.  https://community.atxinc.com/forums/thread/270632.aspx