CCH Axcess™ Tax and CCH® ProSystem fx® Tax: State of California - Form Changes in Tax Year 2021.

  • Article Type:
  • Documentation
  • Last Modified:
  • 02/11/2022

Objectives

To explain the factors which are creating delays for 2021 State of California forms.

Environment

  • CCH Axcess
  • CCH Axcess Tax
  • CCH ProSystem fx Tax
  • California

Details

Due to the large number of changes to specific state forms, and the California tax authority’s unusually slow response in providing approvals, several key California forms are not yet finalized. Below are details on form changes and additional factors:

 
CA Partnership (1065(Estimated delivery 2/27/22)
  • CA FTB has been unusually slow in their approval process.
  • CA follows the new requirement to prevent a form from printing until approval occurs – this has delayed activation of eFile.
  • Extensive changes to the main forms coupled with late arrival for the extent of the change.
    • CA 565/568 implemented many of the changes that took place with the 2020 IRS Form 1065 changes. These changes resulted in an additional page to Form 565. 1065 also has a reconciliation of California source amount that had to be updated as a result.
    • Final form did not arrive to the analyst until 1/28/22.
    • Art was resubmitted 2/3/22 due to the placement issues.
  • Major changes to many supplemental forms.
    • CA Schedules K-1’s (565/568) had major changes.
      • The complexity of the schedule K-1’s with the multiple areas for special allocations and overrides created complexity that added extra time for implementation and testing.
      • K-1 recap had to be updated to reflect new changes.
    • New page for Form 592-F.
    • New page for Form 1067-A.
    • New page for Form 592-PTE.
    • New section on Form 3866.
    • New Banking Info forms for both return and extension (Enhancement).
    • Extension and return payment schema added new tags/business rules (CA revoked 565 business rule 2/7/22).
  • Multiple new supporting forms (some still in progress): Forms 4197, 3804, 3804-CR, 3893
CA Individual (1040)(Estimated delivery 2/27/22)
  • CA FTB has been unusually slow in their approval process.
  • CA follows the new requirement to prevent a form from printing until approval occurs – this has delayed activation of eFile.
  • Extensive changes to the main forms coupled with late arrival for the extent of the change.
    • Sch CA 540 made similar changes to the IRS Form 1040 Schedule changes, expanding the scope of required data from 3 pages to 5 pages.
    • Prelim did not arrive until 1/14/22, Final on 2/3/22.
    • The nonresident equivalent Sch CA 540NR has equivalent changes.
Prelim did not arrive until 2/1/22, still not Final, so we can’t submit for paper approval yet
  • Major changes to many supplemental forms – Forms 540, Sch CA(540), Sch CA NR (540), 568, 3866.
  • CA is eliminating 2D barcode and they have rearranged the forms significantly to remove the 2D space.
  • With the elimination of 2D, CA FTB has moved to “exact positioning” which requires more time to update prior to sample submission.
  • Multiple new supporting forms – Forms 3913, 3804-CR, 4197.
CA Fiduciary 1041(Will be delivered on the 2/13/22 release)
  • Major changes to many supplemental forms – Forms 541 and 5805.
  • CA FTB has moved to “exact positioning” which requires more time to update prior to sample submission.
  • CA FTB has been unusually slow in their approval process.
  • CA follows the new requirement to prevent a form from printing until approval occurs – this has delayed activation of eFile.
  • Multiple new supporting forms – Forms 3804-CR and 4197.

Additional Information

N/A

  Solution Tools
  Attachments
 Solution Id 000138038/CCH-Axcess-Tax-and-CCH-ProSystem-fx-Tax-State-of-California-Form-Changes-in-Tax-Year-2021
 Direct Link
To provide feedback on this solution, please login.

Your feedback about this article will help us make it better. Thank you!