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1040SCAN Policy Statements

SurePrep Outsource

This article covers SurePrep Outsource policy-related information.

Due date calculation

Type of processing
Due date calculation
Standard Processing
  • Outsource returns submitted with 250 pages or less will be completed in three business days from the date submitted and returned to the customer by 8:00 PM EST on the calculated due date.
  • Outsource returns submitted with over 250 pages but less than 400 pages will be processed in four business days from the date submitted and returned to the customer by 8:00 PM EST on the calculated due date.
  • Outsource returns submitted with over 400 pages will be completed in five business days from the date submitted and returned to the customer by 8:00 PM EST on the calculated due date.
Expedited Processing
  • The return will be completed in one business day from the date submitted and returned to the customer by 8:00 PM EST on the calculated due date.
Business Day Calculations
  • Tax returns submitted for Onshore service before 3:00 PM Eastern Standard Time (EST) on a business day will be considered submitted on that day.
  • Tax returns submitted for Offshore service by 8.00 PM Eastern Standard Time (EST) on a business day will be considered submitted on that day.
  • For 1040 & 1041, Saturdays are included as a business day only for the following peak processing periods.
    • February 15, 2025 through April 15, 2025
    • September 15, 2025 through October 15, 2025
  • For Business Tax Returns, Saturdays are included as a business day only for the following peak processing periods.
    • February 15, 2025 through April 8, 2025
    • August 15, 2025 through September 15, 2025
  • Sundays are always excluded as a business day.
  • SurePrep Holidays for Offshore and Onshore are excluded as a business day for that particular service option.

SurePrep Preparation Policy - 1040

Categories
Situation
Checklist
Explanation
General Information
Correction of Spelling Errors in proforma
Always correct the proforma
When spelling errors are found in the proforma information, corrections will always be made.
If the specific option of not correcting proforma data is selected, it will NOT be done.
Do not correct the proforma.
When spelling errors are found in the proforma information, corrections will always be made.
If the specific option of not correcting proforma data is selected, it will NOT be done.
General Information
Correction of Spelling Errors in proforma
General Information
Credit card/Check summary
Consider the Federal and State Estimate payments. Consider other expenses only if are specifically indicated by the client
The federal and state estimated tax payments will be considered from the Credit card/Check summary. In addition to them, if there are any expenses specifically indicated by the client in the summary, then they will also be considered.
General Information
Deletion of items noted as '0' on the Organizer page
Do not delete
When items on the Organizer are noted with '0', they are left as is and not deleted.
If the specific option of deleting items noted with '0' is selected, they will be deleted.
General Information
Deletion of items noted as '0' on the Organizer page
Delete that item(s).
N/A
General Information
Deletion of items on the Organizer noted as SOLD, DELETE or CLOSED
Delete the items / mark 100% disposition
When Sch-C/E/F/K-1's or Interest/Dividends are noted as either sold, deleted or closed on Organizer Pages, they are either marked for 100 % disposition or are deleted respectively. If the specific option of not deleting such items is selected, then they will not be deleted.
Do not delete that item.
When Sch-C/E/F/K-1's or Interest/Dividends are noted as either sold, deleted or closed on Organizer Pages, they are either marked for 100 % disposition or are deleted respectively. If the specific option of not deleting such items is selected, then they will not be deleted.
General Information
Deletion of items on the Organizer noted as
SOLD
,
DELETE
or
CLOSED
General Information
Disposition of Schedule C/E/F/K-1's if crossed out on the Organizer page
Do not mark for 100% disposition
When Sch-C/E/F/K-1's are crossed out on the Organizer Pages, they are NOT marked for 100% disposition by SurePrep.
If the specific option of marking them for 100% disposition is selected, then it is done.
Mark for 100% disposition.
When Sch-C/E/F/K-1's are crossed out on the Organizer Pages, they are NOT marked for 100% disposition by SurePrep.
If the specific option of marking them for 100% disposition is selected, then it is done.
General Information
Disposition of Schedule C/E/F/K-1's if crossed out on the Organizer page
General Information
Proforma'd descriptions with no amounts
Do not delete and leave blank.
When proforma'd description appears with no amounts, they are left as is and not deleted.
General Information
Proforma'd descriptions with no amounts
Do not delete and enter zero
When proforma'd description appears with no amounts, they are left as is and not deleted.
General Information
Proforma'd descriptions with no amounts
Delete proforma' item(s)
When proforma'd description appears with no amounts, they are left as is and not deleted.
Electronic Filing
Processing Federal & State return electronically
Process the Federal & Resident State return for e-filing only if specifically instructed.
We will process federal and resident state returns for e-filing only if specifically instructed either through a Note or on source documents.
If the specific options of e-filing federal and all state returns, e-file federal and don’t e-file state returns are selected, then the selected option will be followed.
Electronic Filing
Processing Federal & State return electronically
Process the Federal & All State returns for e-filing.
We will process federal and resident state returns for e-filing only if specifically instructed either through a Note or on source documents.
If the specific options of e-filing federal and all state returns, e-file federal and don’t e-file state returns are selected, then the selected option will be followed.
Electronic Filing
Processing Federal & State return electronically
Process the Federal return only for e-filing. State returns should not be e-filed.
We will process federal and resident state returns for e-filing only if specifically instructed either through a Note or on source documents.
If the specific options of e-filing federal and all state returns, e-file federal and don’t e-file state returns are selected, then the selected option will be followed.
Electronic Filing
PIN
Enter the PIN only when provided in the source document.
We’ll enter the e-file PIN only if provided in the source documents.
Alternatively, clients can indicate through other options such as either the last 5 digits of taxpayer/spouse SSN can be used as PIN or a specific number can also be provided for taxpayer/spouse PIN.
Electronic Filing
PIN
Use last 5 digits of TP/SP SSN as PIN.
We’ll enter the e-file PIN only if provided in the source documents.
Alternatively, clients can indicate through other options such as either the last 5 digits of taxpayer/spouse SSN can be used as PIN or a specific number can also be provided for taxpayer/spouse PIN.
Electronic Filing
PIN
Use _____as TP PIN and ___as SP PIN.
We’ll enter the e-file PIN only if provided in the source documents.
Alternatively, clients can indicate through other options such as either the last 5 digits of taxpayer/spouse SSN can be used as PIN or a specific number can also be provided for taxpayer/spouse PIN.
Schedule C, E, F
Business Use of Vehicle
Always optimize between actual expenses and standard mileage rate for autos in the 1st year of use.
For calculation of Form 2106 expenses in the 1st year of use, SurePrep will always optimize between Actual expenses and Standard Mileage rate.
If the specific option is selected, either actual expenses or standard mileage rate will be considered n the 1st year of use (unless otherwise specified in source documents).
Schedule C, E, F
Business Use of Vehicle
Always use actual expenses unless otherwise instructed in source documents in the first year of use.
For calculation of Form 2106 expenses in the 1st year of use, SurePrep will always optimize between Actual expenses and Standard Mileage rate.
If the specific option is selected, either actual expenses or standard mileage rate will be considered n the 1st year of use (unless otherwise specified in source documents).
Schedule C, E, F
Business Use of Vehicle
Always use standard mileage rate unless otherwise instructed in source documents in the first year of use.
For calculation of Form 2106 expenses in the 1st year of use, SurePrep will always optimize between Actual expenses and Standard Mileage rate.
If the specific option is selected, either actual expenses or standard mileage rate will be considered n the 1st year of use (unless otherwise specified in source documents).
Schedule C, E, F
Depreciation Expenses
Use proforma standard for all prior year and new depreciation entries.
SurePrep will follow the proforma. If assets are not depreciated in the depreciation schedule and the value for depreciation expenses is provided by the client, then we’ll directly enter the depreciation expense on the respective Schedule. If assets are depreciated in the depreciation schedule, then new assets will also be added in the depreciation schedule.
You can also select the option of always entering new assets in the depreciation schedule.
Schedule C, E, F
Depreciation Expenses
Always enter detailed information for new asset depreciation
SurePrep will follow the proforma. If assets are not depreciated in the depreciation schedule and the value for depreciation expenses is provided by the client, then we’ll directly enter the depreciation expense on the respective Schedule. If assets are depreciated in the depreciation schedule, then new assets will also be added in the depreciation schedule.
You can also select the option of always entering new assets in the depreciation schedule.
Schedule D
Sale of Home
Always report the Sale of Home transaction
Whenever there is a Sale of Home, the transaction will always be reported even though the gain is below the exemption limit of $500,000 (or $250,000 for Single).
If the specific option of not reporting the sale of home transaction if the proceeds are less than the exemption limit is selected, then it will be followed (unless Form 1099 S is provided in the source documents).
Schedule D
Sale of Home
Do not report the sale transaction if Sale proceeds are less than Section 121 Exclusion, unless Form 1099S is provided.
Whenever there is a Sale of Home, the transaction will always be reported even though the gain is below the exemption limit of $500,000 (or $250,000 for Single).
If the specific option of not reporting the sale of home transaction if the proceeds are less than the exemption limit is selected, then it will be followed (unless Form 1099 S is provided in the source documents).
Schedule D
Short Sales not covered till 12/31
Report the transaction and consider the cost to be same as sales price
In case of Short sales that are not covered by the end of the same tax year, the proceeds will be reported and the cost will be considered the same as proceeds (no gain or loss will be reported on it).
Schedule D
Short Sales not covered till 12/31
Do not report the transaction
In case of Short sales that are not covered by the end of the same tax year, the proceeds will be reported and the cost will be considered the same as proceeds (no gain or loss will be reported on it).
Schedule D
Allocation of Sale Price of disposition of entire Entity (C/E/F)
Treat the entire sales as Section 1231 property
In case of Sale of Schedule C/E/F entity, if there are multiple real and personal property in the depreciation schedule and the break up of sale price for the various assets is not provided, then the entire sale will be treated as a Bulk sale and section 1231 property code is selected for the sale.
If the specific options are selected, then sales price will be allocated to the various assets on the basis of either the Adjusted cost basis or Original Cost basis of the property.
Schedule D
Allocation of Sale Price of disposition of entire Entity (C/E/F)
Allocate the sale price for recapture based on adjusted basis.
In case of Sale of Schedule C/E/F entity, if there are multiple real and personal property in the depreciation schedule and the break up of sale price for the various assets is not provided, then the entire sale will be treated as a Bulk sale and section 1231 property code is selected for the sale.
If the specific options are selected, then sales price will be allocated to the various assets on the basis of either the Adjusted cost basis or Original Cost basis of the property.
Schedule D
Allocation of Sale Price of disposition of entire Entity (C/E/F)
Allocate the sale price for recapture based on original basis.
In case of Sale of Schedule C/E/F entity, if there are multiple real and personal property in the depreciation schedule and the break up of sale price for the various assets is not provided, then the entire sale will be treated as a Bulk sale and section 1231 property code is selected for the sale.
If the specific options are selected, then sales price will be allocated to the various assets on the basis of either the Adjusted cost basis or Original Cost basis of the property.
Settlement Statement
When Settlement statement of property purchased is provided and there is no indication regarding the nature of the property
Consider it as Investment property
Whenever we receive a settlement statement for purchase of property and the nature or use of the property is not indicated such as whether it is a personal residence or Schedule C or Schedule E property, it will be considered as Investment Property.
If a specific option is selected, the settlement statement will not be considered at all.
Settlement Statement
When Settlement statement of property purchased is provided and there is no indication regarding the nature of the property
Do not enter any information from the settlement statement
Whenever we receive a settlement statement for purchase of property and the nature or use of the property is not indicated such as whether it is a personal residence or Schedule C or Schedule E property, it will be considered as Investment Property.
If a specific option is selected, the settlement statement will not be considered at all.
K-1s
Final K-1
K-1s will be marked for 100% disposition and included on Schedule D only if the adjusted basis is provided.
We don’t enter sales proceeds or distributions from the K-1 in Schedule D unless the details for shareholder or partner basis in the S Corp or Partnership are provided. We only mark them for 100% disposition.
The specific option of not including the proceeds and basis on Schedule D can be selected.
K-1s
Final K-1
K-1s will be marked for 100% disposition and not included on Schedule D.
We don’t enter sales proceeds or distributions from the K-1 in Schedule D unless the details for shareholder or partner basis in the S Corp or Partnership are provided. We only mark them for 100% disposition.
The specific option of not including the proceeds and basis on Schedule D can be selected.
K-1s
PTP K-1's proforma as partnership
Do not change the proforma and create a new PTP
If a Form 1065 K-1 was considered a partnership in the prior year, but in the current year box for PTP is checked, then we will not change the proforma and create a new PTP for the current year K-1 received.
If a specific option is selected, then we will mark the proforma K-1 to a PTP.
K-1s
PTP K-1's proforma as partnership
Change the proforma partnership to PTP
If a Form 1065 K-1 was considered a partnership in the prior year, but in the current year box for PTP is checked, then we will not change the proforma and create a new PTP for the current year K-1 received.
If a specific option is selected, then we will mark the proforma K-1 to a PTP.
Grantor Letter \ 1041
Initial year
Always create as a New Consolidated Statement.
For a new Grantor Letter received, we will create a New Consolidated Statement. If the specific option of creating a new Form 1041 Schedule K-1 is selected, it will be done.
Grantor Letter \ 1041
Initial year
Create a New K-1 (1041).
For a new Grantor Letter received, we will create a New Consolidated Statement. If the specific option of creating a new Form 1041 Schedule K-1 is selected, it will be done.
Depreciation & Amortization
Section 179 - Qualifying personal property
Section 179 expense should always be taken on the assets purchased during the year.
Section 179 will be claimed on personal property used in business by default.
Client can select the other option where section 179 will be claimed only if specifically instructed.
Depreciation & Amortization
Section 179 - Qualifying personal property
Section 179 expense should be taken on the assets purchased during the year only if specifically instructed
Section 179 will be claimed on personal property used in business by default.
Client can select the other option where section 179 will be claimed only if specifically instructed.
Depreciation & Amortization
Treatment of capital assets whose cost exceeds a certain limit
All depreciable assets should be capitalized and depreciated.
In general, all depreciable assets will be capitalized and hence depreciated. You can provide an amount where if the assets with cost basis less than such an amount will be expensed. For example, you can provide assets costing less than $300 must be expensed (and hence they will not be capitalized and depreciated)
Depreciation & Amortization
Treatment of capital assets whose cost exceeds a certain limit
Assets with a cost less than $___ should be expensed.
In general, all depreciable assets will be capitalized and hence depreciated. You can provide an amount where if the assets with cost basis less than such an amount will be expensed. For example, you can provide assets costing less than $300 must be expensed (and hence they will not be capitalized and depreciated)
Miscellaneous Income
Form 1099-MISC: amount in Box 7 but no Sch C proforma and no information for new business provided
Enter the amount as Miscellaneous Income-subject to SE tax
If we receive a Form 1099 MISC with an amount in box 7 and no Schedule C is proforma; also there is no information that a new business has started, then we will consider it as Other Income subject to SE tax.
If the specific option is selected, then a new Schedule C will be created to report 1099 MISC box 7 income.
Miscellaneous Income
Form 1099-MISC: amount in Box 7 but no Sch C proforma and no information for new business provided
Enter the amount as Sch C income
If we receive a Form 1099 MISC with an amount in box 7 and no Schedule C is proforma; also there is no information that a new business has started, then we will consider it as Other Income subject to SE tax.
If the specific option is selected, then a new Schedule C will be created to report 1099 MISC box 7 income.
Miscellaneous Income
Form 1099-G - overpayment for the prior year(s) other than the previous tax year
Consider the amount as taxable in the current year
Whenever we receive Form 1099 refund for a prior year(s) other than the previous year, the refund is considered as taxable on the assumption that deductions were itemized in that year (to which the refund relates).
If the specific option is selected, then the refund amount of such prior year(s) (other than previous year) will not be considered as taxable.
Miscellaneous Income
Form 1099-G - overpayment for the prior year(s) other than the previous tax year
Do not consider the amount as taxable in the current year
Whenever we receive Form 1099 refund for a prior year(s) other than the previous year, the refund is considered as taxable on the assumption that deductions were itemized in that year (to which the refund relates).
If the specific option is selected, then the refund amount of such prior year(s) (other than previous year) will not be considered as taxable.
Form 8814
Election to report child's Interest & Dividends
Always include the child's income on Parent's return.
Include the child's income on Parent's return if it exceeds the exemption limit
For children under age 18, if all conditions of filing 8814 are satisfied, then the child's interest and dividend income will always be included on the parent's return, even if it less than the exemption limit.
If the specific option is selected, then the child's interest and dividend income will not be included if it is less than the exemption limit.
Form 8814
When child's 1099 DIV/INT has foreign tax payments.
Do not include income of dependent reported on Form 1099 INT and/or Form 1099 DIV
When a child's Form 1099 INT/DIV has foreign tax payments, by default SurePrep will not include the dependent's income on the parent's return.
If the specific option is selected, child's interest and dividend income will be reported without considering the foreign taxes.
Form 8814
When child's 1099 DIV/INT has foreign tax payments.
Include the child's income on Parent's return without considering the foreign tax.
When a child's Form 1099 INT/DIV has foreign tax payments, by default SurePrep will not include the dependent's income on the parent's return.
If the specific option is selected, child's interest and dividend income will be reported without considering the foreign taxes.
Schedule A
Cash contribution
If the amount of donation is less than $___ per donee, enter as a single line item 'Miscellaneous Charitable Contributions', otherwise detail.
If the amount of cash donations is less than a particular amount per organization - which will be provided by the client, a single entry will be made for the total donations with description as 'Miscellaneous Charitable Contributions', otherwise they will be entered in detail.
As per specific options selected, cash contribution will either be summarized or entered in detail.
Schedule A
Cash contribution
Always enter in details
If the amount of cash donations is less than a particular amount per organization - which will be provided by the client, a single entry will be made for the total donations with description as 'Miscellaneous Charitable Contributions', otherwise they will be entered in detail.
As per specific options selected, cash contribution will either be summarized or entered in detail.
Schedule A
Cash contribution
Always summarize the donations
If the amount of cash donations is less than a particular amount per organization - which will be provided by the client, a single entry will be made for the total donations with description as 'Miscellaneous Charitable Contributions', otherwise they will be entered in detail.
As per specific options selected, cash contribution will either be summarized or entered in detail.
Schedule A
Basis for Non-Cash contribution
If basis not provided, consider it as 3 times of FMV
By default, basis for non-cash contributions will be considered as 3 times FMV in absence of cost basis.
Client can provide for a specific number of times of FMV to calculate the cost basis.
Also as per option selected, the basis will be left blank.
Schedule A
Basis for Non-Cash contribution
If basis not provided, consider it as ___ times of FMV
By default, basis for non-cash contributions will be considered as 3 times FMV in absence of cost basis.
Client can provide for a specific number of times of FMV to calculate the cost basis.
Also as per option selected, the basis will be left blank.
Schedule A
Basis for Non-Cash contribution
If basis not provided, leave the basis blank
By default, basis for non-cash contributions will be considered as 3 times FMV in absence of cost basis.
Client can provide for a specific number of times of FMV to calculate the cost basis.
Also as per option selected, the basis will be left blank.
Schedule A
Missing Date for Non-Cash Contribution
If non-cash contribution dates are missing, dates will be left blank.
If the dates when non-cash contributions were made are not provided, by default they are left blank.
If specific option is selected, then they are entered as 'various'.
Schedule A
Missing Date for Non-Cash Contribution
If non-cash contribution dates are missing, enter it as 'various'
If the dates when non-cash contributions were made are not provided, by default they are left blank.
If specific option is selected, then they are entered as 'various'.
Schedule A
Non-Cash contribution - Method of Valuation is missing,
Thrift Shop Value will be selected as the method of determining FMV.
For non-cash contributions, the method of determing FMV will always be selected as 'Thrift shop value' by default.
Depending upon the specific option selected, either Comparable sale will be selected or the method of determining FMV will be left blank.
Schedule A
Non-Cash contribution - Method of Valuation is missing,
Comparable Sales will be selected as the method of determining FMV.
N/A
Schedule A
Non-Cash contribution - Method of Valuation is missing,
It will be left Blank.
N/A
Schedule A
Donee Address
Always use full donee address for non-cash contributions when available.
The complete donee address for Non cash Contributions will be entered when available.
When a specific option is selected, the donee address will be limited to city & state.
Schedule A
Donee Address
Limit donee address for non-cash contributions to City and State
The complete donee address for Non cash Contributions will be entered when available.
When a specific option is selected, the donee address will be limited to city & state.
Foreign Info
Form 8886, 8865, 926
SurePrep will prepare the forms if they are need to be prepared considering the threshold limit
.
N/A
Foreign Info
Form 8886, 8865, 926
Do not generate the forms.
N/A
Estimated Taxes
Estimated taxes Paid (on Organizer page / vouchers / tax software)
Consider as paid if not otherwise indicated
Estimated taxes on the Organizer Pages or Vouchers or in the tax software will be considered as paid unless it is indicated otherwise.
As per the specific option, they will not be considered as paid.
Estimated Taxes
Estimated taxes Paid (on Organizer page / vouchers / tax software)
Do not consider as paid
Estimated taxes on the Organizer Pages or Vouchers or in the tax software will be considered as paid unless it is indicated otherwise.
As per the specific option, they will not be considered as paid.
States
Non-resident state return
Prepare the return only if the state is proforma.
SurePrep will process non-resident state returns only if those states are proforma.
Alternatively, depending on the option selected, non-resident returns will be prepared if specifically instructed or will always prepare non-resident state return.
States
Non-resident state return
Prepare the return only if specifically instructed.
SurePrep will process non-resident state returns only if those states are proforma.
Alternatively, depending on the option selected, non-resident returns will be prepared if specifically instructed or will always prepare non-resident state return.
States
Non-resident state return
Always prepare the non-resident state return
SurePrep will process non-resident state returns only if those states are proforma.
Alternatively, depending on the option selected, non-resident returns will be prepared if specifically instructed or will always prepare non-resident state return.

CCH Axcess Tax Outsource returns - tax return draft PDF

When SPbinder (Outsource) is submitted back, SurePrep will only upload the tax return draft PDF if requested. Follow these steps if you want to receive a tax return draft PDF: 
  1. Instead of typing the note each time, create a quick note template for your firm. Go to
    FileRoom
    ,
    Admin
    ,
    Account Setup
    , then
    Quick Notes
    .
  2. Add the following quick note for your firm:
  3. When submitting an Outsource binder for CCH Axcess Tax, select the
    Notes
     tab in the
    Create New Binder
     window, then select the quick note you saved earlier.

This article applies to:

  • Product: SurePrep

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