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2023.025 release information
Pending releases
Release date: 2/16/2024
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Get the latest on open and closed issues as they're discovered by reviewing Alerts and notices.
Domestic Income Tax
- We added these 2023 TRCs for 1065 and 1120S, Schedule K.Newly added 2023 TRCsTRCDescription1065, Schedule K1120S, Schedule K34-746Recoveries of tax benefit itemsLine 11Line 1034-747Gambling gains and lossesLine 11Line 1034-748Income/gain or loss distrib under Sec. 751(b)Line 11Line 1034-749Gain Sec. 1045 rollover (stock purchased)Line 11Line 1034-751Gain Sec. 1045 rollover (no stock purchased)Line 11Line 1034-752Gain sale/exch QSB stock Sec. 1202 exclusionLine 11Line 1034-753Gain/loss disp farm recap prop & oth Sec. 1252Line 11N/A34-754G/L Fannie Mae/Freddie Mac qualif pref stockLine 11N/A34-756Non-portfolio capital gain (loss)N/ALine 12d34-757G/L disp oil/gas/geothermal/oth mineral propLine 11Line 12d44-744Soil and water conservationLine 13eLine 12d44-745Film, television, & theatrical prod expLine 13eLine 12d44-746Expenditures for removal of barriersLine 13eLine 12d44-747Itemized deductionsLine 13eLine 12d44-748Contributions to capital construction fundLine 13eLine 12d44-749Penalty on early withdrawal of savingsLine 13eLine 12d44-751Interest exp allocated debt-financed distribLine 13eLine 12d44-752Interest exp for working interest oil or gasLine 13eN/A
- 2023 1120 4626 and 8865 won't be available for theExcel Add-in data import.
- Data Query updates:
- We added 1065/1120S Sch K TRC codes to related Chart/Tax Accounting System reports.
- The Tax Return, Partnership, Federal, Income Statement report now includes lines 20 and 29.
- The Tax Return, Corporation, Federal, Income Statement report now includes line 25.
- The Tax Return, Corporation, Federal, Taxes report now includes lines 3, 9f, 9g, and 22.
- The Tax Return, Corporation, Foreign, 5471 Schedule C now includes lines 8a, 8b, and 21b.
- TheOrganizer and TAS compute and consolidatearen't available in tax year 2000, 2001, and 2002 binders.
Updates
We resolved the deep dive issue to
State A&A workpapers
for Client Manager accounts. Data Query
2023 Tax Return reports are now available.The following
Excel Add-in
maps for 2023 have been updated and are now available for import.- 1120 Schedule K
- ExpatriatedEntityAndForeignParent
- YExpatriatedEntityAndForeignParentByVote
- YExpatriatedEntityAndForeignParentByValue
- 1120 1042
- XifAllF1042SfiledThroughIRSFIRESystem
- NumberOfFormsEFiled
- XPaymentMadeUnderSection871m
- XPaymentMadeByQDD
- UseEINOptionWPorQI
- 1120 5472
- ReportingCorpdateofincorporation (corrected not new)
- 1120 8858 Filer Information
- Category5FilerofForm5471
- 1120 8975 Schedule A
- ConstituentEntityRoleCode
- 1120 Illinois Adjustments
- TotalDeprClaimFed4562Ln17Ln19For80PercentofProp
- TotalDeprClaimFed4562Ln17Ln19NotElected
1065 Partnership
Form 7205, Energy Efficient Commercial Buildings Deduction is pending release.
Arkansas
The following forms are pending for future release:
- AR1155-PET,
- AR2220-PET,
- AR2220A-PET,
- AR1100PTV,
- AR1100BIC,
- AR1100NOL,
- AR1100REC,
- AR-AIS,
- AR-K1FE,
- AR1055-CR Voucher,
- AR8453-CR
Kansas
We haven't yet developed the aggregate percentage of ownership on the workpaper for K-120S, Page 2, line 31.
New Mexico
We are currently still developing organizer inputs and computations for Form PTE, line 17.
Oregon
Form OR-QUP-CAT is pending release.
Federal
For Schedule K-2 and K-3, In Organizer, when you go to Foreign Information, then Ptr Distributive Share-International, then K-2,K-3 Activation and General Info, we removed the override fields for Parts of Federal Schedule K-2 for tax year 2023 for 1065 tax returns. This is also true for the federal Schedule K-3 override fields on the
Partner Information Organizer
screens.We corrected Line 20zz to prevent improper e-file rejects.
We restored the e-file delete function.
We modified organizer descriptions for Schedule B, lines 31 & 28.
California
We corrected the non-display issue for Form 565, Schedule K-1, Side 3, Line 19a, Column D.
We updated the print for Form 568, Side 6, Schedule L, Lines 9 & 11, Columns B.
We modified the e-file schema to correct items related to the authorization to debit checkbox.
Idaho
We updated the percentage on Form 65, Line 42.
Illinois
We corrected the e-file return header to prevent rule ILHeader-500-2.
Maryland
We corrected items related to reject code SCHEDULEK1-61005-025.
Mississippi
We activated various DK-1 fields.
Nebraska
We updated the e-file schema to prevent improper display of TANF validation errors.
North Carolina
We updated the e-file to avoid inappropriate display of TypeOfPartner validation errors.
We disabled e-file business rules NCD403-1405 and NCD403-1411 across all platforms.
Pennsylvania
We removed the watermark on Schedule RK1 and NRK1.
Vermont
We improved the calculation on Form BI-477, Page 2, Part V, Line 22.
We restored data flow from the organizer to Form BI-477, Page 1, Lines 1 & 2, Columns A.
We altered the flow of data for BI-477, Page 2, Line 14a, Column A to reference Federal 1065 Line 22.
We corrected items related to BI-473, Line 6.
We repaired print for BI-477, Page 3, Line 34b.
1120 Corporate
Indiana
We corrected the Schedule K-1, lines 10 and 11 computations.
We updated Schedule PTEP so that more than 22 shareholders will print.
New Mexico
We suppressed Form RPD-41285 from print. This is an e-file only form and should not print.
Pennsylvania
We updated the tax rate used in the computation for RCT-101, Page 2, line14.
Tennessee
We updated e-file to include the element FranchisePropertyFactor in the Schedule N xml.
International
ONESOURCE API features released for international
We released
ONESOURCE API features released for international
to support the retrieval and update of these items for tax years 2018 and later. Navigation path is Foreign Binder, Foreign Entity, Current year Taxes Paid, and then Accrued.- GET /v1/years/{year}current-year-taxes-paid-accrued-country-codes
- GET /v1/years/{year}/current-year-taxes-paid-accrued-tax-types
- GET /v1/binders/{binderId}/current-year-taxes-paid-accrued-tax-account-balances
- GET /v1/binders/{binderId}/current-year-taxes-paid-accrued
- PATCH /v1/binders/{binderId}/current-year-taxes-paid-accrued
- POST /v1/binders/{binderId}/current-year-taxes-paid-accrued-reset
Form 5471, 8858, and 8865 Organizer options
- New options are available toturn off transfers from international computes. Before transferring new results, the international compute deletes all existing information in the schedules. If manual overrides are entered in Organizer, you must select the appropriate options on the INTL Transfer Options pages within the Foreign Corporation (5471), Foreign Partnership (8865) and FDE and FB (8858) navigation tree to prevent additional transfers to the schedule. Failure to select these individual options will result in the loss of any Organizer overrides (even if the Organizer field is locked).importantAfter rolling your foreign entity binders and before running transfer to forms, determine if you plan to file Form 5471, Schedules I and P by shareholder or summary and use Enterprise Control Panel, Organizer INTL Transfer Options to block transfer to the alternate approach. For example, if filing Schedule I by shareholder, select yes/on option and no/off for Schedule I by Summary.
- New options available in Enterprise Control Panel,Organizer Intl Transfer Options, including Foreign Entity 5471 and 8865 International Compute Transfers. This release enables transfer for:
- Form 5471 Schedule E
- Form 5471 Schedule E-1
- Form 5471 Schedule G
- Form 5471 Schedule H
- Form 5471 Schedule I (defaults to checked, no transfer)
- Form 5471 Schedule I by Shareholder
- Form 5471 Schedule I-1
- Form 5471 Schedule J
- Form 5471 Schedule M
- Form 5471 Schedule P (defaults to checked, no transfer)
- Form 5471 Schedule P by Shareholder
- Form 5471 Schedule Q
- Form 5471 Schedule R
- Form 5471/Form 8990 (defaults to checked for tax year 2022; defaults to unchecked for tax year 2023 and later)
- Form 8858 Schedule H (959(b) Dividends and Return of Capital)
- Form 8858 Schedule J
- Form 8865 Schedule K-2, Part II, Sections 1 and 2
- Form 8865 Schedule K-2, Part III, Section 1
- Form 8865 Schedule K-2, Part III, Section 4, Line 1
- Form 8865 Schedule K-2, Part V
FTC Defaults Options
We added new
FTC default options for tax years 2023 and later
. For tax years 2023 and later, we added the following new options:
- 163(j) Adjustment – GILTI Computations
- 163(j) Adjustment – Subpart F Computations
- When you select the 163(j) Adjustment – GILTI Computations option, the Passive and General Limitation source code amounts that are non-Subpart F (after considering de minimis and full inclusion) in theFinal Amountcolumn of the Section 163(j) Business Interest Expense Workpaper, Section 163(j) Adjustment tab are:
- Summarized by basket and flow to row5(ii) - Section 163(j) Adjustment (Workpaper Only)in the GILTI Workpaper,Tested Item Sourcing and Translationtab.
- Summarized by basket (and by division level for Divisional Consolidations processing Intercompany Transactions at the division level) and included in the GILTI High Tax Exception calculation.
- When you select the 163(j) Adjustment – Subpart F Computations option, the Passive and General Limitation source code amounts that are Subpart F (after considering de minimis and full inclusion) in theFinal Amountcolumn of the Section 163(j) Business Interest Expense Workpaper,Section 163(j) Adjustmenttab are:
- Summarized by source code and adjust Net Base Company Income After Section 954(b)(3) for purposes of the Section 952(c)(1)(A) Subpart F limitation to current year E&P.
GILTI workpaper adjustment transfer
For tax years 2023 and later, amounts entered or imported into these columns of the
GILTI Workpaper, High Tax Exception Adjustments
automatically carry to the GILTI Workpaper, Tested Item Sourcing and Translation with the sign reversed. In a future release, the 163(j) adjustment will be transferred to row 5(ii) - Section 163(j) adjustment (workpaper only) when the 163(j) Adjustment - GILTI Computations is selected in FTC Defaults. If the automated transfer's used, don't enter the 163(j) adjustment in the Interest Expense Adjustment (FC) (exclude 163(j) after TY2022) column. If the 163(j)'s calculated outside the system, include the 163(j) adjustment in the Interest Expense Adjustment (FC) (exclude 163(j) after TY2022) column and don't turn on the automated transfer.
High tax exception adjustments column | Tested item sourcing and translation row |
|---|---|
Other deductions adjustment (FC) | 5(v) - Other deductions adjustment (workpaper only) |
Interest expense adjustment (FC) (exclude 163(j) after TY2022) | 5(iv) - Non 163 (j) interest expense adjustment (workpaper only)
|
Foreign entity 163(j) grouping override workpaper
A new foreign entity
Section 163(j) CFC Grouping Overrides Workpaper
is available in tax year 2023 and later top consolidation binders.For tax year 2022, ONESOURCE added the capability to determine the Section 163(j) current business interest expense deduction under the stand-alone (single entity) method under which each foreign corporation’s allowable business interest expense is evaluated individually. Version 2023.005 introduced functionality for tax year 2023 to calculate the Section 163(j) current business interest expense deduction under the grouping method.
In the current release, a new
Section 163(j) CFC Grouping Overrides Workpaper
is available in tax year 2023 and later top consolidation binders. The Member of FTC Group Computed
and CFC Specified Parent Computed
columns identify the FTC Parent and CFC groups created by ONESOURCE during the last Subpart F calculation. Use the Member of FTC Group Override
and CFC Specified Parent Override
columns to adjust the groups created by the system. During Subpart F calculations, the overrides are merged with any rows that only have computed values to determine the “final” FTC/CFC groups. The Export option includes all information on the screen and can be used as a template for an upcoming import feature.
note
To indicate that a CFC should be treated as a stand-alone entity, set the CFC Specified Parent Override to that entity.
As overrides are entered in the screen, the following validations are performed:
- If theMember of FTC Group Overrideis set toNo, a selection must be made in the CFC Specified Parent Override.
- If theMember of FTC Group Overrideis set toYes, the CFC Specified Parent Override must be blank.
- If theCFC Specified Parent Overrideis set to an entity that is a member of the FTC Group or another CFC Group, an error is reported.
Section 163(j) CFC Grouping Overrides Workpaper
, they will be reported at the top of the grid with the information icon in the Entity column. Previously valid entities might be deemed invalid if, since the last Subpart F compute, they have been removed from the top consolidation binder’s International Members
tab or the foreign entity type is no longer set to Controlled Foreign Corporation
. If an invalid entity is selected in the CFC Specified Parent Override column, that field will be identified as an error, and the situation will need to be resolved before any changes can be saved.During Subpart F calculations, ONESOURCE removes any invalid entities from the
Section 163(j) CFC Grouping Overrides Workpaper
. The screen will no longer contain a row for the invalid entity, and, if the entity was assigned as the CFC Specified Parent Override for another entity, the override will be removed and the Member of FTC Group Override will be set to blank. The system then merges the FTC and CFC Group overrides with rows that only have computed values to determine the “final” FTC/CFC groups and reports comprehensive edit error #2429 for any inconsistencies such as:
- The selected CFC Specified Parent is a member of the FTC Group
- The selected CFC Specified Parent is a member of another CFC Group
Transfer to US Form 8992
You can now transfer Form 5471 and 8858 information from the
International Computes
screen in a 2023 tax year top consolidation and foreign entity binder. The 2023.025 release enables transfer for these schedules -- 5471 Schedule Q and transfer to Form 8865 Schedule K-2 will be available in a subsequent release.note
If you select the
Schedule B
option available in a Top Consolidation binder (Organizer, Foreign Information, Shareholder Calculation of GILTI, INTL Transfer Options), the International Compute, Transfer to US8992
selection will not update the Shareholder Calculation of GILTI section of Organizer in any FTC binder in the top consolidation’s International Members list (legal entity or related divisions).TRCs added for Forms 5471, 8858, 8865
TRCs added
for tax year 2023 for Forms 5471, 8858, and 8868. TRC's for Form 5471, Sch C Line 9, Other income; Form 8858, Sch C Line 9, Other income; and Form 8865, Sch K Line 11, Other income (loss).
TRC - 8865, Sch K, Line 11 Other income | Description |
|---|---|
34-757 | 11I Sch K: G/L disp oil/gas/geothermal/oth mineral prop |
34-746 | 11J Sch K: Recoveries of tax benefit items |
34-747 | 11K Sch K: Gambling gains and losses |
34-748 | 11L Sch K: Income/gain or loss distrib under Sec. 751(b) |
34-749 | 11M Sch K: Gain Sec. 1045 rollover (stock purchased) |
34-751 | 11N Sch K: Gain Sec. 1045 rollover (no stock purchased) |
34-752 | 11O Sch K: Gain sale/exch QSB stock Sec. 1202 exclusion |
34-753 | 11P Sch K: Gain/loss disp farm recap prop & oth Sec. 1252 |
34-754 | 11Q Sch K: G/L Fannie Mae/Freddie Mac qualif pref stock |
34-756 | 11S Sch K: Non-portfolio capital gain (loss) |
TRC's added for Form 5471, Sch C Line 17, Other deductions; Form 8858, Sch C Line 11, Total deductions; and Form 8865, Sch K Line 13d, Other deductions
TRC - 8865 Sch K, Line 13d Other deductions | Description |
|---|---|
44-744 | 13W Sch K: Soil and water conservation |
44-745 | 13X Sch K: Film, television, & theatrical prod exp |
44-746 | 13Y Sch K: Expenditures for removal of barriers |
44-747 | 13Z Sch K: Itemized deductions |
44-748 | 13AA Sch K: Contributions to capital construction fund |
44-749 | 13AB Sch K: Penalty on early withdrawal of savings |
44-751 | 13AC Sch K: Interest exp allocated debt-financed distrib |
44-752 | 13AD Sch K: Interest exp for working interest oil or gas |
44-530 | 13AE Sch K: Deductions for portfolio income |
TRC - 1120, Line 25 | Description | 5471 | 8858 | 8865 |
|---|---|---|---|---|
41-635 | Energy Efficient Commercial Buildings Deduction | Sch C Line 17, Other deductions | Sch C Line 11, Total deductions | Sch K Line 13d, Other deductions |
Foreign entity 163(j) adjustment allocation and override workpaper for tax year 2023 and later
For tax year 2022, ONESOURCE allocated any Section 163(j) adjustment to the passive and general limitation baskets using a ratio of interest expense accounts (account types 5100, 5106, 5110, 5115, 5160 and 5170) allocated/apportioned to those baskets on the E&P by Source Code – After Dividend Look Through Report over the combined amounts for those baskets. This information was presented on the
Section 163(j) GILTI High Tax Exception Interest Expense Adjustment by Basket Report
to facilitate import of 163(j) adjustments to the GILTI Workpaper. For tax years 2023 and later, Section 163(j) adjustments will be spread to source codes and allocated to divisions in the case of a divisional consolidation processing intercompany dividends at the division level during Subpart F computes. The source code/entity amounts are transferred to the
Section 163(j) Business Interest Expense Workpaper > Section 163(j) Adjustment tab
. Use the Section 163(j) Adjustment tab to override the calculated values and/or enter additional lines of information. For a parent, subsidiary, corporate single entity or divisional consolidation processing intercompany transactions at the div con level, the Entity field will default. For a divisional consolidation processing intercompany transactions at the division level, select the appropriate division member from the dropdown list. In an upcoming release, the amounts in the Section 163(j) Adjustment tab can be incorporated into the calculation of the Subpart F inclusion, the GILTI High Tax Exception, and transferred to the GILTI Workpaper.
Section 163(j) adjustment allocation
ONESOURCE calculates the total adjustment for Section 163(j) during Subpart F computations by converting the U.S. Dollar figures for business interest expense and floor plan financing interest expense from the Section 163(j) Workpaper to functional currency and then subtracting the functional currency value of the business interest expense deduction from the functional currency value of the total business and floor plan financing interest expense. The calculation is reviewed in the Section 163(j) Adjustment Report within the Subpart F > Section 163(j) Business Interest Expense folder. The allocation of the total 163(j) adjustment to specific source codes or entities varies based on whether the adjustment results in an increase or decrease in interest expense.
When there is a 163(j) limitation (adjustment decreases interest expense)
, the legal entity 163(j) adjustment is allocated by “reversing” general interest expense apportionment priorities. Using information on the E&P by Source Code – After Dividend Look Through Report: 1 - Allocate to 3rd Party Interest Expense (5100, 5110, 5115 & 5160)
: Sum the 3rd party interest expense accounts and create a source code ratio. To the extent the 163(j) Adjustment does not exceed the sum of the 3rd party interest expense, spread the 163(j) adjustment using the 3rd party source code ratios.2 - Allocate to Intercompany Interest Expense other than Passive Subpart F (5170)
: Sum the intercompany interest expense source codes other than passive subpart F source codes and create a source code ratio. To the extent the remaining 163(j) Adjustment does not exceed the sum of intercompany interest expense in source codes other than passive subpart F, spread the remaining 163(j) adjustment using the ratios of source codes other than passive subpart F.3 - Allocate to Intercompany Interest Expense Passive Subpart F (5170)
: Sum the intercompany interest expense source codes that are passive subpart F source codes and create a source code ratio. To the extent the remaining 163(j) Adjustment does not exceed the sum of intercompany interest expense in source codes that are passive subpart F, spread the remaining 163(j) adjustment using the passive subpart F source code ratios4 – Other
: Allocate any remaining 163(j) Adjustment to source code 21 - General Limitation.If the 163(j) adjustment reduces interest expense and the legal entity is a divisional consolidation processing intercompany transactions at the division level, the legal entity source code amounts calculated in Steps 1 - 3 are allocated to the divisions by:
- Creating a ratio of the division amounts in each source code using the same accounts as considered in the legal entity allocation step (3rd party interest expense, intercompany interest expense in passive subpart F source codes, or intercompany interest expense in source codes other than passive subpart F).
- Spreading each legal entity source code amount for steps 1 - 3 to the divisions using the related division ratio.
When the 163(j) adjustment creates additional interest expense
, the legal entity 163(j) adjustment is allocated first to reduce after tax E&P in passive subpart F source codes and then to other source codes. Using information on the E&P by Source Code – After Dividend Look Through Report: If the 163(j) adjustment creates additional interest expense, the legal entity source code amounts (Steps 1 - 4) are allocated to the division that is the parent division of the divisional consolidation.
The allocation under both methods is presented for legal entities and divisions in a
SECTION 163(J) ADJUSTMENT ALLOCATION
section at the bottom of the E&P by Source Code – After Dividend Look Through Report. The calculated amounts flow to the Section 163(j) Business Interest Expense Workpaper > Section 163(j) Adjustment tab when the FTC Defaults > Transfer to 163(j) Workpaper box is checked. Federal
Automatic transfer to GILTI and the tested item sourcing and translation workpaper during subpart F calculations and GILTI tested item sourcing and translation import report:
- If the foreign entity is deminimis, amounts in a Passive Income Source Code with Subpart F Type 7 – Effectively Connected Income and 8 – Boycott, or in a U.S. Income Subpart F Source Code move to the General Limitation Basket. To work around the issue, modify the sourcing to use non-subpart F source codes. Before modifying the sourcing note the deminimis amount for Form 5471 Schedule G purposes.
- Line 2a – Effectively Connected Income
- Source Codes with Subpart F Type 7 – Effectively Connected Income that meet the 954(b)(4) exception are included on both Line 2a – Effectively Connected Income and Line 2c- High Tax Exception Income.
- Line 2b – Subpart F Income includes subpart F source codes with negative subpart f eliminated on the Subpart F Deemed Distribution report.
- Line 2c – High Tax Exception Income
- Source Codes with a Subpart F Type 8 – Boycott that meet the high tax exception are included on Line 2c – High Tax Exception Income. In ONESOURCE even if the Boycott Income meets the 954(b)(4) exception, it is included on the Subpart F Deemed Distribution report and therefore should be included on Line 2b – Subpart F.
- Total Income (rather than the Total Gross Income) from the E&P by Source Code After Dividend LT report is transferred to Line 2c (High Tax Exception Income) for the subpart F source codes that meet the 954(b)(4) High Tax Exception.
- Line 2e – Foreign Oil and Gas Extraction Income includes 959(b) dividends.
- Line 5i - Allocable Deductions from Subpart F (Workpaper Only)
- Dividend Withholding Taxes on 959(b) Dividends are included on Line 5i when the entity is full inclusion.
- Line 7 – Tested Foreign Income Taxes
- Dividend Withholding Taxes on 959(b) Dividends are included on Line 7 when the entity is full inclusion.
- Line 9a(i) – Interest Expense from Subpart F (Workpaper Only)
- Account types 5110 and 5115 are not included for tax year 2022 and later.
- Account types 5104 and 5106 are not included for tax year 2022.
- Line 10a – Interest Income Included in Line 4a
Automatic transfer to GILTI
We updated the application for the GILTI tested item sourcing and translation import report so that on
line 2d - Related Party Dividends
the General basket includes FOGI related party dividends. FOGI, including related party dividends, are included on line 2e – Foreign Oil and Gas Income. When an entity has income that is excepted under the GILTI High Tax Exception, related party dividends from Section 959(c)(3) E&P are not included on Line 2d - Related Party Dividends of the GILTI Tested Item Sourcing and Translation Import Report.
On
line 5i - Allocable Deductions from Subpart F
(Workpaper Only), includes amounts in account types 2000-2800 for source codes that are excluded from the Tested Income (Loss) due to Subpart F, Effectively Connected, High Tax and FOGI.TIBS Warning messages 2427 and 2428 Currently Disabled with Division Sourcing
TIBS Warning messages 2427 and 2428 were introduced with the Section 250 Transfer to Income Sourcing to warn a user when Section 250 FDII or GILTI amounts have been computed, but there is no account type in the International Summary Chart to transfer the amount to. These warnings will now trigger in a division sourcing at the Divisional Consolidation level.