How do I generate Massachusetts Form 63D-ELT and M-63D-EXT in a 1065 return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax?

  • Article Type:
  • How To
  • Last Modified:
  • 11/05/2022

Objectives

Form 3, Line L relates to the new return type for the pass-through entity tax election - the main form for which is the 63D-ELT. The extension form is the M-63D-EXT. Neither of these forms have been added to the software with releases 2021-2.7 /2021.02070 and prior.

Environment

  • CCH® ProSystem fx® Tax
  • CCH Axcess™ Tax
  • 1065
  • Partnership
  • Massachusetts

Procedure

M-63D-EXT

  1. Go to Federal Extensions > Extensions worksheet.
  2. Expand Section 2 - State Extension Information.
  3. In Line 1 - Produce all state first extensions, select the checkbox, or
  4. In Grid 4 - Specific State Information - First Extensions, input state code MA.
    • If preparing after March 15th, also select the State to be unlocked checkbox.
  5. Go to Massachusetts > Other worksheet.
  6. Expand Section 8 - Entity Level Tax Information
  7. In Line 7 (Interview Form MA10, Box 90) - Amount paid with extension, input applicable amount.
  8. Calculate the return.

MA 63D-ELT

  1. Go to Massachusetts > General worksheet.
  2. Expand Section 2 - Options.
  3. In Line 2 (Interview Form MA1, Box 62) - Pass-through entity has elected to pay tax at the entity level, select the checkbox.
  4. Calculate the return.

Notes

  • When the election has been made the MA > Form 3, Item L check box will be filled and the total amount from the 63D-ELT, page 2, line 14, will be present in the amount field for Line L.
  • Electronic filing is required for both the 63D-ELT (main form) and M-63D-EXT (extension).
  • Payment is required with efiling of the M-63D-EXT extension at the time the extension is filed.
  • Form 3 and 63D-ELT are efiled separately.
[Caution]
  • The amounts on Schedule 3K-1, Lines 41-41e, which fill the qualified member portion of Form 63D-ELT, are not allowed to be less than zero, per MA Form 3 instructions
  • Form 63D-ELT, Page 1, Line 12 is not allowed to be less than zero.
  • 63D-ELT Page 2 line 1 was originally coming from Page 1, Line 13. Until 2021.03010 posts, those two lines and the total of all 3K1s, line 41c would need to match to clear diagnostic 42307. On 2021.03010, the total of all 3K1s, line 41c will match 63D-ELT page 2 line 1.
  • Since we carry Page 1, Line 13 to Page 2, Line 1 on 2021.03001, there will be diagnostics preventing electronic filing in some situations when the totals for some items are negative. If this is the case, please put the return on extension and/or wait until release 2021.03010 and see the planned updates below.

Planned updates for 2021.03010

  • As a result of the response from the state, we will be including amount from qualified member's Schedule 3K-1, Line 20 on Form 63D-ELT, Line 11. However, that amount is not included in the calculation of the entity level tax - per MA it is informational. We will also then be updating Form 63D-ELT, Page 2, Line 1. It will no longer come from Page 1, Line 13 but rather the total of all applicable members' Schedule 3K-1, Line 41c. It was thought Page 1, Line 13 would need to match Page 2, Line 1 but MA has indicated this is not the case. This will simplify the matching requirements.
  • Page 1, Section 1 will pull from the applicable lines for qualified members on Schedule 3K-1, including Line 11 from Sch 3K-1, Line 20.
    Schedule 3K-1, Line 41a will no longer check if Sch 3K-1, Line 21 is positive before including it in the calculation. If the total of Sch 3K-1, Lines 4, 7, 8, 10-13, and 21 are greater than 0, the total will be used for 41a.
  • Schedule 3K-1, Lines 41b-41e will calculate the same, as will the qualified members information/statement.
    Page 2, Line 1 will pull the total of qualified members Schedule 3K-1, Line 41c and the calculation will continue from there.
    Page 1, Line 13 will no longer be required to match Page 2, Line 1.

Additional Information

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