WalkThrough
Tax Year 2012
Invest a few hours of your time to experience the power of UltraTax/1065
the tax preparation application that puts you in complete
control of processing your tax returns.
TL 26033 (4/10/13)
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UltraTax/1065 WalkThrough iii
Contents
Getting Started ......................................................................................................... 1
About UltraTax CS .............................................................................................................. 1
The UltraTax CS main window ............................................................................................ 2
UltraTax CS menu and toolbar ....................................................................................... 2
UltraTax CS Home Page ................................................................................................ 2
The UltraTax CS Help menu ............................................................................................... 5
Help & How-To Center ................................................................................................... 5
UltraTax CS Ideas Community ....................................................................................... 6
Tax Subject Index ........................................................................................................... 6
Additional Resources ...................................................................................................... 6
Bulletins .......................................................................................................................... 7
On the Web .................................................................................................................... 7
Getting Started ............................................................................................................... 8
Additional research resources ............................................................................................. 8
Setting Up and Exploring UltraTax CS ................................................................... 9
Entering firm and preparer information ................................................................................ 9
Reviewing the tax return collation ..................................................................................... 11
Entering invoice pricing ..................................................................................................... 13
Customizing the print options ............................................................................................ 16
Restoring sample client data ............................................................................................. 17
Navigating in UltraTax CS ................................................................................................. 19
Preparing Your First 1065 Return ......................................................................... 21
Opening a clients return ................................................................................................... 21
Entering data for the return ............................................................................................... 23
Entering partnership data .................................................................................................. 25
Opening Partner Data Entry ......................................................................................... 26
Entering partner information ......................................................................................... 28
Importing general ledger data from CSA ...................................................................... 30
Contents
iv UltraTax/1065 WalkThrough
Entering depreciation data ............................................................................................ 34
Entering special allocations .......................................................................................... 36
Entering depreciation special allocations ...................................................................... 39
Using the Tax Subject Index to locate the appropriate screen ..................................... 41
Choosing transmittal letters, filing instructions, and invoices ........................................ 42
Viewing forms .................................................................................................................... 44
Entering apportionment information .................................................................................. 46
Reviewing and checking the return ................................................................................... 51
Reviewing the Return Summary ................................................................................... 51
Reviewing diagnostic messages................................................................................... 52
Attaching tick marks and notes ..................................................................................... 53
Previewing and printing the return ..................................................................................... 55
Deleting the partnership sample client .............................................................................. 61
Importing General Ledger Balances into UltraTax CS for Your Own Client .... 63
Choosing a partnership test client ..................................................................................... 64
Adding the Write-Up CS test client to UltraTax CS ........................................................... 64
Viewing the tax code PDF ................................................................................................. 65
Importing balances from Write-Up CS and setting up tax codes ...................................... 65
Learning More About UltraTax CS ........................................................................ 69
UltraTax CS features that optimize return preparation ...................................................... 69
Additional UltraTax CS features ........................................................................................ 71
Integration with other applications ..................................................................................... 76
Support and training .......................................................................................................... 77
UltraTax/1065 WalkThrough 1
Getting Started
This walkthrough will provide you with a basic understanding of the design and
functionality of UltraTax CS. Because this walkthrough is relatively brief, we cannot
show you all of the application features and capabilities. However, after you
complete the walkthrough, you will have a good understanding of the basic features
of UltraTax CS and be able to prepare tax returns with confidence and efficiency.
This walkthrough is most beneficial when you read the pages in sequence. If
UltraTax CS does not perform as expected while you use this walkthrough, please
call CS Support at 800-968-0600, press 2 for Product Support, and then listen to the
available options.
This chapter of the walkthrough describes the following:
The UltraTax CS main window, including the menu, toolbar, and Home Page
How to use the Help menu to learn more about UltraTax CS
About UltraTax CS
All UltraTax CS applications share common features and adhere to standard
Windows
Return items list This list contains descriptions of the printable items in
the return and the current print condition for each item. You can select a
single item or multiple items at the same time and change the collation
properties. Click the Government, Client, or Preparer tab to change the
collation properties of the same items for other copies of the return. Click
the Did you know button for more information on this
feature.
Print conditions group box For each item in each copy of the return,
you can print the item when the item is required or you can suppress the
item from printing. You can enable certain items that are not required to
always print when data is present.
When filing electronically group box You can print the return on paper
when filing electronically or include an item as a second attachment when
the client copy of the tax return is delivered via email, as a PDF file, or via
the NetClient CS
web portal.
Move Up / Move Down buttons To change the collation order, highlight
an item in the list and click these buttons to change the items position in
the sequence.
Restore Default button Click this button to restore the collation of each
copy of the return to the UltraTax CS default or to the prior-year collation.
Note: By default, the return collation is set to follow IRS guidelines on forms
that should print with the return, and we strongly recommend that you use the
default Government collation. While you can customize the Client and Preparer
collations, you do not normally need to make these changes.
3. We will not change the order of the forms for this walkthrough, so click Cancel
to close the dialog.
Entering invoice pricing
UltraTax CS provides many invoice options so you can customize your client
invoices. You can print an invoice without a detailed form listing, print a detailed
form listing with only one price, print a detailed list with a specific price per form, or
force a total invoice amount. In addition, you can create custom invoice prices on a
per-client basis when you do not want to use the standard invoice. Invoice pricing
from the prior-year UltraTax CS automatically transfers to the current-year
application when you proforma, so you need to update only prices that have
changed. UltraTax CS provides a predefined template for client invoices so you can
use proportional fonts and borders, copy text from files in other applications such as
Microsoft
Word
and UltraTax CS. You must have both UltraTax CS and CSA installed to
complete the following sections. If you do not have CSA installed, skip to
Entering depreciation data on page 34.
For this walkthrough, we will simulate a data import from Write-Up CS, which is part
of the CS Professional Suite Accounting Products, to UltraTax CS. In addition, you
can import balances from Accounting CS
UltraTax CS can examine the general ledger balances in the client write-up files,
summarize those balances as needed, apply whole-dollar rounding, and then import
relevant amounts to the corresponding input screens according to the tax code.
You can assign tax codes in CSA throughout the year so that you are ready to
import balances for the return during tax season. You need to assign tax codes to
general ledger accounts only once, even if the IRS changes line numbers on forms.
If you already maintain a clients general ledger information in CSA, using this
feature saves you time when you prepare a clients return. If you use CSA, you can
import the current clients pre-existing general ledger information before you
manually enter data for that client in UltraTax CS.
Restoring sample data into Write-Up CS
In this exercise, we will restore some sample data into Write-Up CS and then import
that data into UltraTax CS.
ACTIONS
1. Double-click the Creative Solutions Accounting icon on your desktop or
choose Start > All Programs > CS Professional Suite > Creative Solutions
Accounting.
2. If the Login to CSA dialog opens, enter your staff ID and password, and then
click OK.
3. Choose File > Restore to open the Restore Clients dialog.
4. Click the Change Backup Location button.
5. In the Modify Location dialog, navigate to C:\WINCSI\UT12\
WALKTHRU\CSADATA if C:\ is the drive on which you installed UltraTax CS.
Notes
If you installed UltraTax CS in a different location when you installed the
evaluation application, replace C:\WINCSI in the path above with the
location to which you installed UltraTax CS. For example, if you installed
UltraTax CS in F:\WINAPPS\WINCSI, you should navigate to
F:\WINAPPS\WINCSI\UT12\WALKTHRU\CSADATA.
If you access UltraTax CS through Virtual Office CS, you will restore the
sample data from Y:\UT12\WALKTHRU\UTWDATA.
6. Click OK to close the Modify Location dialog.
Preparing Your First 1065 Return
UltraTax/1065 WalkThrough 31
7. In the Restore Clients dialog, highlight client 1065A in the Available pane on the
left.
8. Click the Select button to move client 1065A to the Selected pane on the right.
9. Click the Restore button. The Restore Status dialog opens, which shows the
progress of the restore process. The Abort button changes to the Done button
when the process is complete.
10. Click Done when available. The client opens in CSA.
Note: If the Data Sharing Updates dialog opens, click the Postpone button.
11. Choose File > Close Client.
12. Choose File > Exit to close CSA.
Verifying the location of CSA and the data files
Before you import data from CSA into UltraTax CS for the first time, you need to
verify the drive and path where UltraTax CS looks for CSA and the data files. In the
following exercise, you will set up the file locations in UltraTax CS.
ACTIONS
In UltraTax CS, you are at the bottom of Screen L in the Balance Sheet folder.
1. Choose Setup > User Preferences.
2. In the User Preferences dialog, click the File Locations tab.
3. Click the CS Accounting Products option.
Preparing Your First 1065 Return
32 UltraTax/1065 WalkThrough
4. Highlight Creative Solutions Accounting (CSA) in the File Types list. If CSA is
installed in a location different from the one listed in the File Types list, click the
Modify Location button, navigate to the appropriate location, and click OK.
5. Click OK to close the User Preferences dialog.
Importing Write-Up CS data into client UTW1065A
Now that you have restored the data in Write-Up CS and completed the one-time
file location verification procedure, you are ready to import the Write-Up CS data
into UltraTax CS. For client UTW1065A, you will import data for Form 1065, Page 1;
Schedules K, L, M-1, and M-2; and rents and royalties. You can also import
partnership data for Schedule M-3, Forms 1125-A and 8916-A, farms (Schedule F),
and farm rentals. If you do not import general ledger data from CSA or another
general ledger application, you will manually enter this information in the UltraTax CS
input screens.
ACTIONS
You are at the bottom of Screen L in the Balance Sheet folder.
1. Press PAGE UP to move to the top of the input screen. Notice that the
beginning-of-year balance sheet numbers have already been completed in
Screen L. This demonstrates how the proforma process imports the end-of-year
numbers from the previous tax year to the Beginning of Year fields for the
current tax year.
Next, you will retrieve general ledger data from Write-Up CS to import the
end-of-year amounts from Write-Up CS to Screen L.
2. Choose Utilities > Creative Solutions Accounting (Import).
Preparing Your First 1065 Return
UltraTax/1065 WalkThrough 33
3. Highlight client 1065A, and click the Select button.
4. Click the Import button to import the Write-Up CS data into UltraTax CS.
5. The Abort button changes to the Done button when the import is complete.
Click Done when available. Notice that the end-of-year balance sheet amounts
have been imported from Write-Up CS.
Importing general ledger data
UltraTax CS automatically performs many functions when you import general ledger
information.
During the general ledger data import process, UltraTax CS rounds the general
ledger amounts to the nearest whole dollar, imports all general ledger data,
creates statement dialogs, and transfers the amounts and descriptions from the
general ledger application to the appropriate statement dialogs.
When you import general ledger information, UltraTax CS imports the
appropriate years general ledger balances. Therefore, you can close out a
clients year before you process the tax return and process the new year with
the general ledger application, if necessary. If you close out a clients year in
your general ledger application and then import the information, UltraTax CS
automatically imports the clients prior-year data rather than the recently
entered current-year data.
UltraTax CS uses tax codes to import data from Accounting CS, Write-Up CS,
Trial Balance CS, Fiducial
Accountants
Relief,
If you
have any questions about the availability of applications, please contact your
CS account representative.
CS Connect You can use CS Connect, a utility that runs as part of
UltraTax CS, to download licenses, application updates, and user bulletins for
all UltraTax CS applications. In addition, you can use CS Connect to obtain
authorization codes for per-return-pricing (PRP) returns, send electronically filed
returns to our network of secure data centers, retrieve electronic filing
acknowledgments, send client data to CS Product Support, and receive other
timely information. You can also transmit and retrieve web organizers using
CS Connect. To start CS Connect, choose Utilities > CS Connect.
Security You can set the security options that meet the needs of your firm.
Your firm can use either standard security options or advanced security options.
When you choose standard options, you create two levels of access. One level
is for those who know the master password, and one level is for those who do
not. When you use advanced security options, you create many levels of
access. To limit access to specific UltraTax CS features, you can set privileges
for pre-defined or created groups and then assign users to one or more groups.
For more information on how to set up the security options, click the arrow next
to the Help button on the toolbar, enter Security options in the search field,
and press ENTER. In the search results page that opens, click Setting security
options.
Data Mining With Data Mining, you can search your UltraTax CS application
databases for clients with specific characteristics, such as clients whose
adjusted gross income falls within a particular range or clients whose data
contain specific input screen field entries. After search results are generated,
you can create custom reports and client letters, email client letters, export
search results to a file for use with other applications, and generate mailing
labels. Using Data Mining, you can identify your clients tax accounting needs,
pinpoint tax savings opportunities, and effectively target your client
communications.
Extension printing You can generate extension forms, extension transmittal
letters, and extension filing instructions for multiple clients at the same time. If
you process a clients state return with UltraTax CS, you can also print state
extension forms and filing instructions for the client. You can choose extension
forms for clients before or after data entry. You can also print extensions on a
client-by-client basis. To print extensions, choose File > Print Returns, and then
click the Extension option.
Learning More About UltraTax CS
72 UltraTax/1065 WalkThrough
Package separator pages You can print separator pages, which are similar
to collation separator pages, for the Beneficiary (1041), Shareholder (1120S),
Partner (1065), and Participant (5500) packages. UltraTax CS prints the
package separator page with the collation separator pages when you mark the
Print separator between collations checkbox in the Setup > System
Configuration > Print Options tab.
Multiple-state processing You can process any number of state returns
from one set of federal data. UltraTax CS transfers as much information as
possible from the federal return to each state return to minimize the time and
effort required to process state returns. UltraTax CS also calculates the credit
for taxes paid to other jurisdictions and transfers the amount to the resident
state as applicable. In addition, you can print all of your returns at the same
time, which saves you even more time. To add a state return to an open client
at any time, choose File > Client Properties, and then click the Add State(s)
button.
Proforma With the proforma process, you can transfer certain information
from a prior-year version of UltraTax CS into the current-year version.
UltraTax CS reduces the amount of data you must enter each year, which
saves time and reduces inconsistencies and data-entry errors. You can select
data paths that were set up in the prior-year version of UltraTax CS from the
drop-down list in the Data to proforma group box. You can also automatically
proforma both the client notes and custom label sizes from the prior year. To
open the Proforma dialog, choose Utilities > Proforma.
Tax elections library You can choose specific elections to print with your
returns and create additional elections, as necessary. For example, to choose
an election statement, open federal Screen Elect in the General folder, scroll to
the Election Statements section, and open the Election Number drop-down list.
To create new elections, choose the applicable entity option from the Setup
menu, click the appropriate federal or state tab, click the Tax Elections button,
and click the New button.
UltraTax CS
Electronic Filing utility With the UltraTax CS Electronic Filing
utility, you can electronically file your clients returns. This utility creates
electronic files for various federal and state returns. For more information about
electronic filing, click the arrow next to the Help button on the toolbar, enter
electronic filing overview in the search field, and press ENTER. In the search
results page that opens, click UltraTax CS electronic filing overview.
Data sharing UltraTax CS automatically shares general data (such as the
clients name and address) among all returns with which a client is associated.
Schedule K-1 financial data can be shared among all 1040, 1041, 1065, and
1120 client returns. UltraTax CS uses data sharing capabilities to save you
more time by eliminating redundant data entry.
Client complexity factor The client complexity factor is a numeric value that
represents the approximate time and effort involved in preparing a clients tax
return. This value is assigned to each UltraTax CS client and is automatically
calculated by the application based on the complexity of the federal forms and
schedules that comprise that return. The complexity value also includes other
details, such as the number of assets, number of partners or shareholders, and
rent and royalty properties. UltraTax CS assigns default values to these
constituent factors, but you can assign your own values. This feature can help
you analyze a specific clients return and can help you assess your client base
as a whole. You may want to use this information to determine return
preparation fees, assign work to your employees, or formulate schedules.
Learning More About UltraTax CS
UltraTax/1065 WalkThrough 73
UltraTax CS displays the client complexity factor in the Client Profiles section of
the UltraTax CS Home Page, the Open Client dialog, the Diagnostics list, and
the General Client Information report. For more information about this feature,
click the arrow next to the Help button on the toolbar, enter Client complexity
values in the search field, and press ENTER. In the search results page that
opens, click Assessing the complexity of a clients return.
Import spreadsheet data feature You can import data into statements from
a Microsoft Excel
and
NetStaff CS.
You
can modify Practice CS to suit the needs of your firm, which helps all staff
members from partners to associates to support personnel efficiently
manage and prioritize their work loads and allows your firm to achieve
maximum productivity. If you are licensed for Practice CS, you can export
invoice information from UltraTax CS when a certain status event is logged for a
client, complete Practice CS tasks and projects when you log status events for
a client, and send a list of all UltraTax CS clients to Practice CS.
Support and training
Our professional computer, accounting, and tax support staff provide prompt
answers to your questions. We also offer a variety of training options so you can
choose the training that best suits your firms needs. These options include
seminars in major cities and web-based training courses to participate in an online
training session with a CS training representative and other CS Professional Suite
application users across the country.
During the busy tax season, our support staff is available for extended hours. Other
optional services, such as our web-based ARNE Community (the Accountants
Resource Network) and an annual users conference provide a means to
communicate with colleagues for additional support.
Learning More About UltraTax CS
78 UltraTax/1065 WalkThrough
Our users know the emphasis we place on keeping our promises, whether to stay
with you until your question is fully answered or to deliver quality tax applications on
time. We know you depend on us to serve you. We also depend on you. We seek
your advice, solicit your reactions, and use your input to improve all of our
applications and services. We are committed to working with you honestly and
fairly. We are also committed to supporting your practice with tax and accounting
applications, excellent support, and additional services.