Tax software buyers' guide.The tax software industry is undergoing significant changes--affecting in both vendors and users. The biggest change is the accelerating swing from the DOS operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. to Windows. And several vendors have made the commitment to develop systems with integrated solutions--the so-called software suites--in which several accounting/tax packages are linked so they share a common database and users can navigate easily from one to the other. While these changes are under way, the industry is going though a period of consolidation--buyouts and mergers--generating intense competition among the surviving vendors. Such moves generally are good news for users because they typically result in lower prices and better products. THE HIGH PRICE OF CHANGE However, mergers can cause problems. Prentice-Hall, which was acquired by CLR/Fast-Tax, is inviting its users to convert to CLR's GoSystem or Easy-Go. Tax Resources was purchased by Lacerte and FlashTax announced that it has quit the tax software business. This consolidation trend alarms some users, especially those who use the smaller, lesser-known vendors that are more likely to be acquired or go out of business, leaving their customers as orphans. Small vendors face particularly difficult obstacles these days. First, in order to stay competitive they have to convert to Windows--and that's an expensive investment. On top of that, if Congress approves a major change in the tax law, they will have to revamp re·vamp tr.v. re·vamped, re·vamp·ing, re·vamps 1. To patch up or restore; renovate. 2. To revise or reconstruct (a manuscript, for example). 3. To vamp (a shoe) anew. n. their software--adding another expensive burden. Windows is now nearly universally accepted. In 1994, 5 of the 19 vendors we reviewed ("Spotlight on Tax Software," JofA, Oct. 94, page 49) offered Windows versions See Windows. (Veritax, ProSeries, Tax Relief, ProSystem fx and GoSystem). This year, TaxWorks and Package EX have tentatively announced Windows versions for the 1995 tax year and eight additional vendors are committed to launch Windows versions next year. Unlike other accounting software users, tax preparers generally have been less interested in switching to Windows tax packages. Yet despite the cool reception, vendors believe they see the handwriting on the wall handwriting on the wall Daniel interprets supernatural sign as Belshazzar’s doom. [O.T.: Daniel 5:25–28] See : Omen : While many of these tax preparers may not want it now, they will be eager buyers soon. Another factor is the drop in hardware prices. Many CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. firms have been hesitant to switch to Windows because some of their computers aren't able to handle the operating system's hardware needs. But that's changing: The continual drop in computer prices has led many to junk their 286 and 386 models and upgrade to 486s and Pentiums. In addition, the introduction of Windows 95--the new Windows operating system--is luring more CPAs into the Windows camp. Because of this, few software packages, except for a handful of unique industry-specific applications, are committed to further enhancements of DOS applications. The relatively high cost of tax software has long been a deterrent to tax preparers. In fact, some small CPA firms and those who prepare few returns often substitute inexpensive personal tax software. That may be changing this year as prices drop for the professional products. Of the 19 reviewed, 5 high-powered professional packages now carry renewal prices for 1040 software (including one state and laser-printing software) of less than $1,000. Most also offer attractive limited-use pricing for both 1040 and business returns. THE SUITE SWING Accounting software developers, recognizing that CPA firms provide many services in addition to tax preparation, are beginning to follow the lead of the major software vendors--Microsoft, Novell and Lotus--by working toward suites of integrated applications. The move makes sense. After all, CPA firms often use software from different vendors for tax preparation, planning and research, accounting, write-up, audit and time and billing. Since individual applications generally generate their own databases, staff members must learn how to use each--which makes for lots of extra training. Integrated suites simplify things: They provide a common approach to data entry since each application works off a common database. In addition, they link easily to other popular software, including CPA firms' clients' general accounting packages and tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. and electronic tax and accounting research programs. And they provide enhanced practice management tools. CLR (Common Language Runtime) The runtime engine in Microsoft's .NET platform. The CLR compiles and executes programs in Microsoft Intermediate Language (MSIL). The counterpart to the CLR for the Common Language Infrastructure (CLI), ECMA's standard version of . , publisher of GoSystem and Easy-Go tax software, took a big step in this direction last year by purchasing Prentice-Hall and Sequel-McGladrey, adding accounting, write-up, payroll, fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and audit packages to its growing family of products. Additionally, CLR now markets electronic tax forms, sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. and other software to both accounting firms and corporate tax departments. A new Micro Vision suite includes Excel, Timeslips, BusinessWorks, Laser Librarian and its own business tax software--all for $995. Creative Solutions, Intuit in·tu·it tr.v. in·tu·it·ed, in·tu·it·ing, in·tu·its Usage Problem To know intuitively. [Back-formation from intuition. , SCS/Compute and TAX$IMPLE also have taken steps in this direction. Since the Windows operating system lends itself to such integration, expect to see this trend accelerate. SOFTWARE COMPARISONS Because of the fierce competition, deep price discounts, especially for first-time users, are common. As a result, instead of listing first-time prices in this article, we show the more stable renewal prices. To make this guide easier to use, we've broken the listings into three segments along natural marketing lines: (1) 1040 software priced under $1,000, (2) software suitable for both multistate mul·ti·state adj. Of, relating to, or involving several states: a multistate environmental campaign. regional and national firms and (3) tax software for the mainstream tax practice. LOWER-COST ALTERNATIVES There are many choices available for under $1,000, including both DOS and Windows products. Of the five in this category, three--Intuit's ProSeries, Micro Vision's Tax Relief and Cold River's Veritax--are available in Windows versions, with TAX$IMPLE promising a 1996 release. Except for Veritax, all are available for DOS as well. In addition, ProSeries has a Macintosh version. Despite their low prices, many software packages in this category compare quite favorably, feature for feature, with the more expensive products. ProSeries Intuit Phone: (800) 934-1040 DOS Mac Windows Overview Intuit's ProSeries 1040 is designed for the small and medium-sized tax preparer. The program is available for all 44 states that impose income tax. Features include an integrated tax-planning worksheet to explore what--if scenarios, an integrated married-filing-joint vs. married-filing-separate (MFJ-MFS) worksheet, a comprehensive online help system, a client status screen showing completion-review dates and free-form comments and a final review that includes diagnostics, tax savings suggestions, Internal Revenue Service audit flags and a list of overrides and file notes. New for 1995 * Interchangeable in·ter·change·a·ble adj. That can be interchanged: interchangeable items of clothing; interchangeable automotive parts. in client files allow both DOS and Windows users to access and work on the same material. * Forms now dynamically expand for data entry, eliminating the need to create and access supporting worksheets. * Unlimited copies available for all IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. forms, K-1s and assets. * Pull-down pick lists added for each form to improve data entry and accuracy. * Federal and all related state returns can be printed at one time. * Data import capabilities for 1040 expanded to include Quicken A popular financial management program for PCs and Macs from Intuit, Inc., Mountain View, CA (www.intuit.com). It is used to write checks, organize investments and produce a variety of reports for personal finance and small business. and Managing Your Money as well as Quick-Books, Accountant's Trial Balance, ACCPAC ACCPAC Accounts Package ACCPAC Accounting Package , DacEasy, Peachtree and other popular business accounting software. Tax/Pack Professional Alpine Data Inc. Phone: (800) 525-1040 DOS Overview Alpine's Tax/pack Professional is a Windows release for 1996 is planned. New for 1995 * Full mouse support for aH schedules. * Transmittal letter Transmittal letter A letter describing the contents and purpose of a transaction delivered with a security that is changing ownership. now handles federal, resident and nonresident non·res·i·dent adj. 1. Not living in a particular place: nonresident students who commute to classes. 2. state and local information. * K-1 information automatically transfers from the partnership and S corporation return to appropriate 1040 returns. * The program can automatically duplicate an MFJ MFJ Married Filing Jointly MFJ Modified Final Judgment MFJ Martin F. Jue (founder of MFJ Enterprises, Inc.) MFJ Modified of Final Judgment MFJ Meta Font Job return into two MFS MFS Medicare fee schedule returns. * Quick access for default state resident return. * Includes checkboxes with a notepad The text editor that comes with Windows. It is a very elementary utility, but gets the job done most of the time. See text editor and WordPad. (text, tool) Notepad - The very basic text editor supplied with Microsoft Windows. and custom forms to indicate whether to include with federal and state returns. * New batch printing capabilities for federal and state extensions. * Multiple state processing for 1040 preparation. Veritax Cold River Software Phone: (800) 837-4829 Windows Overview Available only for 1040, this new Cold River Software Windows program is the lowest-priced tax-preparation package included in this review ($495 renewal for federal and state), making it competitive with the popular personal tax packages. Despite its low price, it is feature-rich, including automatic calculation and TrueType fonts. It allows unlimited simultaneous multistate processing and automatic calculation of MFJ-MFS, including a calculation of the state tax impact. Fixed assets can be shared by multiple activities. New for 1995 * Sales of assets automatically carried forward from the depreciation module. * Systems diagnostics expanded and print speed enhanced. * Interface navigation options improved. * Support for both asynchronous Refers to events that are not synchronized, or coordinated, in time. The following are considered asynchronous operations. The interval between transmitting A and B is not the same as between B and C. The ability to initiate a transmission at either end. direct and indirect electronic filing. * Filing instruction letters and invoicing capabilities. SOFTWARE FOR REGIONAL-NATIONAL FIRMS At the opposite end of the spectrum from the lower-cost alternatives are software packages marketed for use by offices of national and large regional firms. These programs include practically every conceivable tax form and schedule required for a business. They provide support for individual, business and estate packages for practically every state. And they can handle the most complex returns and offer practice management features required to track return status in large offices. This high-end group includes A-Plus-Tax by Arthur Andersen For the U.S. Supreme Court case commonly known as Arthur Andersen, see . Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms (the other four are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG), performing , GoSystem by CLR and ProSystem fx by Commerce Clearing House. While these packages may not be the only tax software used by national and international firms, they are the only ones that can handle the diversity, complexity and scope of the large national and international firms. As with the lower-cost packages, Windows is definitely the operating system of choice. Both ProSystem fx and GoSystem offer Windows versions, and A-Plus-Tax plans a 1040 version for 1996 release. A-Plus-Tax Arthur Andersen LLP LLP - Lower Layer Protocol Phone: (800) 872-1040 DOS Overview A-Plus-Tax offers a comprehensive DOS product line achieving integration between the federal and multiple state modules by requiring the user to code specific data on the federal screens. Data entry supports both batch and interactive input. Underlying schedules during interactive input are accessed by drilling down. Users are frequently required to enter multiple, application or sequence codes (including state coding)--all of which require a sound knowledge of the program because look-up information often is sketchy. The 1040 software supports all taxing authorities with the exception of Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. . Business and estate modules, which offer some support for 28 states, provide the least coverage of any product in this elite group. The program provides interfaces to Bureau of National Affairs BNA (The Bureau of National Affairs, Inc.) is a Washington, D.C.-based publisher of news and information on legislation, regulations, and court decisions for professionals in business and government. It is the oldest wholly employee-owned company in the United States. tax planning and to tax research products of CCH CCH Colegio de Ciencias y Humanidades (Spanish) CCH Certified Clinical Hypnotherapist CCH Cook County Hospital CCH Certified in Classical Homeopathy CCH Country Club Hills (Fairfax City, VA, USA) , BNA BNA Bureau of National Affairs, Inc. BNA Birds of North America BNA block numbering area (US Census) BNA British North America BNA Banco Nacional de Angola (National Bank of Angola) and RIA (Rich Internet Application) A Web-based application that approaches the speed and elegance of a local application. An RIA may refer to a browser-based application that uses AJAX or another enhanced coding technique. (Research Institute of America). A-Plus-Tax requires a significant time investment to fully understand its capabilities. It does not have some of the practice management features that its competitors include, such as processing status of returns and preparer-review notes. Nor does it include features such as MFJ-MFS comparisons and what-if analyses, which are included in low-cost and mainstream products. New for 1995 * A Windows-based 1040 version to be released in January. * Three additional states added to business modules. * All federal and state documentation added online. * Modem support available for all DOS program. GoSystem Computer Language Research Inc. (CLR/Fast-Tax) Phone: (800) 327-8829 DOS Windows Generally refers to a DOS session under Windows. Windows can run DOS programs full screen or in a resizable window similar to other Windows applications. See DOS box. Overview GoSystem for DOS (called GoSystem 2) and GoSystem for Windows provide the comprehensive forms, national state coverage, products and features needed to meet the needs of large national practices. Both batch and interactive processing are fully supported. Interactive data entry is made to its Electronic Organizer See PDA. screens, arranged by category (lowest level of detail). After entering all the data and computing the return, users can view data and extensive diagnostics in IRS-form format. Changes may be made at any level. Prompts and special coding can allocate income and expenses to resident and any nonresident state and for passive, at-risk and expatriate Expatriate An employee who is a U.S. citizen living and working in a foreign country. calculations. An extensive help system includes instructions for IPS (1) (Inches Per Second) The measurement of the speed of tape passing by a read/write head or paper passing through a pen plotter. (2) (IPS) (Intrusion Prevention S forms and publications, the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. , Treasury regulations and RIA's Federal Tax handbook. Direct links also are provided to BNA and RIA Onpoint. As with other high-end products, the learning curve is extensive. GoSystem, as well as EasyGo--CLR's DOS product marketed to smaller firms--has extensive practice management tools. The program provides for assignment of returns to staff members, due-date scheduling and tracking, a comprehensive status tracking (with up to 16 levels) and time logging for all work, broken down by tasks. Additionally, GoSystem provides space for preparer and reviewer notes, as well as footnotes to be included with the return. Color symbols identify existence of notes and underlying detail. E-mail capabilities are included, too. New for 1995 * Input capability added for state estimated payment made after yearend. * A reason for a second extension request can now be added. * Navigation streamlined and custom letter capabilities enhanced for Windows version. ProSystem fx CCH Inc. Phone: (800) 457-7639 DOS Windows Overview GoSystem fx, whose DOS and Windows versions are shipped only on CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). , is a comprehensive program that provides support for all states (for residents, part-year residents and nonresidents) in all modules, as well as a number of cities, counties and municipalities. (CD-ROM, which stands for compact disk-read-only memory, is an efficient method for storing huge amounts of information on a disk the same size as a music compact disk. The information can only be read, however; it cannot be changed as if it were on a standard floppy disk. To support the complexities required for the most difficult returns, the system has extensive special coding options for allocation between schedules, for state and city purposes and for passive, at-risk and expatriate calculations. In many instances, although the program defaults to normal treatment if special codes are not entered, the software requires training to become proficient pro·fi·cient adj. Having or marked by an advanced degree of competence, as in an art, vocation, profession, or branch of learning. n. An expert; an adept. in it. The Windows program, based on the DOS product, offers the advantage of multiple windows and improved printing and facilitates use of ProSystem fx's extensive help system. The software tracks status of returns in progress and allows review notes to be attached to individual files. New for 1995 * General ledger General Ledger A company's accounting records. This formal ledger contains all the financial accounts and statements of a business. Notes: The ledger uses two columns: one records debits, the other has offsetting credits. and time and billing interfaces established for Windows. * Interface for CCH Tax Assistant for S Corporation. * Improved installation and print capabilities. * State modules for exempt organization and estate tax returns added. * Electronic filing for states added. TAX SOFTWARE FOR MAINSTREAM PRACTICE These packages are marketed to mainstream firms. While they do not try to be all things to all users, they generally are designed to be easy to learn and use Easy to learn refers to software that is well designed and capable of being used right away without having to wade through documentation. If you make the program work with little effort, it is easy to learn. . Most have more powerful state packages than their lower-cost alternatives and provide sound technical support. Some have a strong national presence; others are more regional. These 11 products, unlike the software on either end of the spectrum, were all sold only as DOS products in 1994 (CPASoftware and TaxMachine also offer Unix versions). Two vendors have promised 1995 Windows versions: Package EX and TaxWorks; six others are promising Windows next year. The remaining three have not announced plans to convert. CPASoftware CPASoftware Phone: (904) 434-2685 DOS UNIX Overview CPASoftware is a sound character-based tax product with primary 1040 support for batch input-sheet data entry. Screen layout, help screens and manuals are designed for easy learning; it uses consistent commands throughout the various screens. State support is strong for both 1040 and business packages. While the product does not offer estate software, its fixed asset depreciation calculation is comprehensive and allows for multiple asset sales within one transaction. The package does not include MFJ-MFS comparisons, and automatic multistate processing is limited to two states. New for 1995 * Forms-on-screen, an interactive entry method available for 1120, 1120S and 1065 products, is available for individual returns as well. Additional questions needed to compute the return, but not on the form, can be accessed through pop-up screens. * Online help expanded to include the entire preparer's manual as well as some IRS instructions. * All tax products can access research materials on CD-ROM from within the software. * Fixed-asset entry, within the depreciation module, simplified to improve data entry. * Automatic multistate processing expanded to include at least three states. Digitax Cold River Software Inc. Phone: (800) 432-1065 DOS Overview Digitax is a strong regional tax package, providing support for major eastern states Eastern States can refer to several locations:
The program supports only interactive input. Input screens are organized by type of income expense category rather than IPS form sequence. When entering data, the user is asked to select the categories needed for the client and then pages down to bring up each selected schedule in sequence to simplify calculations. Additional schedules may be added during processing. State forms and instructions are comprehensive. Documentation and screen layout make learning easy. Updates may be obtained at any time from the company's bulletin board. Simultaneous multistate processing is limited to California, Connecticut, Florida, Massachusetts Florida is a town in Berkshire County, Massachusetts, United States. It is part of the Pittsfield, Massachusetts Metropolitan Statistical Area. The population was 676 at the 2000 census. , New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New Jersey, Ohio and Virginia. There are no what-if analyses or practice management features. Its sister package, Veritax, is Cold River's Windows tax product. New for 1995 * Seven additional forms to 1040 federal program. * Multiple recipient distributions for federal and state 4972 computations supported. * MFJ-MFS computation extended to calculation of total tax, including proper allocation of itemized deductions Itemized Deduction A deduction from a taxpayer's taxable adjusted gross income that is made up of deductions for money spent on certain goods and services throughout the year. in noncommunity states. * All manuals are now available electronically, allowing complete search, browse and print features. * Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. and South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. added. Lacerte Tax Software Lacerte Software Corp. Phone: (800) 765-7777 DOS Overview While integration may be in vogue, Lacerte remains committed to tax software as its only business. This year it added Tax Resources customers to its fold; last year it added jet-tax and Diamond customers. Interactive input is by type of income and expense, rather than the conventional IRS forms approach. The screen layout, help screens, well-written manuals and support are effective in reducing learning time and improving efficiency. The software supports unlimited multistate processing and links to BNA for tax planning. Lacerte now supports all states with an income tax for 1040 preparation and 26 states for business purposes. While many vendors now offer software on CD-ROM, Lacerte's approach is particularly noteworthy. New customers in 1994 received two additional CD-ROMs, including the complete Lacerte software for 1990 to 1993. Thus, all programs can be accessed from the CD-ROM drive A device that holds and reads CD-ROM discs. CD-ROM drives generally also play audio CD discs by sending analog sound to the sound card via a 4-pin cable. For specifications of 10x, 20x, etc. drives, see CD-ROM drives. See CD-ROM, CD-ROM changer, CD-ROM server and CD-ROM audio cable. , eliminating the need to maintain prior-year programs on the hard disk. Users may choose which software to load onto the hard disk. Seldom-used programs can be accessed from the CD-ROM. The Updates module checks file dates on the hard disk to determine what files must be uploaded, making regular updates quick and painless pain·less adj. Free from complication or pain: a painless operation. pain  less·ly adv. . New for 1995 * Support provided for 15 additional states for business tax packages. * 706, 709 and 990 federal return programs distributed on every CD-ROM, available as needed as needed prn. See prn order. on a pay-per-return basis. * Self-study continuing professional education courses are expanded, including product tutorials and t-related topics. * A Windows 95 version being beta tested A test of new or revised hardware or software that is performed by users at their facilities under normal operating conditions. Beta testing follows alpha testing. Vendors of packaged software often offer their customers the opportunity of beta testing new releases or versions, and the in 1996 release. LMS/Tax SCS/Compute Inc. Phone: (800) 488-0779 DOS Overview LMS/Tax typifies the midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually tax product. Offering sound national coverage for both 1040 software and business packages, it supports both batch and interactive input. Input entry can be made either by IRS form or by income-expense categories. Batch input is designed for fast heads--down entry. The help system is comprehensive for both federal and state forms and there are program updates on the company's toll-free bulletin board. LMS/TAX includes a one-year tax planner and what--if analyses. The program offers more than 50 optional worksheets and extensive diagnostics. it integrates with Datawrite, ATB ATB Antibiotic ATB All The Best ATB Ability to Benefit ATB André Tanneberger (musician) ATB Across the Board ATB Active Time Battle (roleplaying game) ATB All Terrain Bike ATB Alberta Treasury Branches and the add-on Taxi bridge to reduce the need for duplicate data entry for business returns. Practice management features include statistical reports, client tracking and the ability to export to word processors and spreadsheets. Screen layout, documentation and help screens all create a user-friendly product. New for 1995 * 1995 programs available on CD-ROM. * Customizable description lists to speed data entry for common names. * Label printing capability for K-1 recipients. * Five additional states and one city for 1040; one additional business state added. * Additional forms for power of attorney, foreign income exclusion, net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry forward and schedule B worksheets. Package EX ExacTax Inc. Phone: (800) 352-3638 DOS Overview A new entry in our roundup, Package EX covers many western and eastern states for both 1040 and business products. The software supports both interactive and batch processing (1) Performing a particular operation automatically on a group of files all at once rather than manually opening, editing and saving one file at a time. For example, graphics software that converts a selection of images from one format to another would be a batch processing utility. , with input to IRS form schedules. A "quick code" feature allows substitution of short numeric numeric see numerical. numeric cluster see ten-key pad. codes for some input text, ranging from common charities and banks to frequently used tax return phrases found in the forms. Help is line-sensitive, covering all federal schedules. Users may hotkey to their tax research package. While the software will run on older PCs, slow calculation and processing routines make 486 or Pentium machines highly desirable. Status codes provide a quick summary of work in process. Multistate processing is provided. Any two 1040 state returns and up to nine business returns can be processed simultaneously. Tax planning features are limited. Some note capabilities are included. The product is available on CD-ROM. New for 1995 * Windows version to be added. * Improved network and communication setup. * A letter requesting missing client information added. * The output view now includes both graphic and text modes. * Seven additional 1040 forms and states added plus federal schedule H. * Time and billing manager added. Pencil Pushers Tax Software Damirus Corp. Phone: (800) 370-2500 DOS Overview Pencil Pushers, starting with its New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. base, has expanded its 1040 software to all tax states and widened its business and estate support to key states such as California, Pennsylvania California is a borough in Washington County, Pennsylvania, along the Monongahela River. The population was 5,274 at the 2000 census. It includes the campus of California University of Pennsylvania. , Illinois, New Jersey and Ohio. Pencil Pushers' character-based software provides for complex returns, supports multistate processing, automatically generates MFJ-MFS comparisons and supports tax planning (with an add-on module) and what--if analyses. It handles both batch and interactive processing. Input is by a combination of income-expense category and IPS form. Use of function keys and commands are unique to the product, which makes learning a little slow. The complete instruction manual is accessible online, using occasional humor humor, according to ancient theory, any of four bodily fluids that determined man's health and temperament. Hippocrates postulated that an imbalance among the humors (blood, phlegm, black bile, and yellow bile) resulted in pain and disease, and that good health was to make learning more enjoyable. The current package includes a bonus CD-ROM disk of all 1991 to 1994 software (federal and state) so prior year tax software can be accessed easily. Pencil Pushers' "Lite-Pay" option offers a lower-priced alternative for smaller firms. New for 1995 * Forms added for unlimited foreign tax credits, recapture recapture n. in income tax, the requirement that the taxpayer pay the amount of tax savings from past years due to accelerated depreciation or deferred capital gains upon sale of property. (See: income tax) RECAPTURE, war. of federal mortgage subsidiary, qualified electric vehicle credit and credit for FICA FICA abbr. Federal Insurance Contributions Act Noun 1. FICA - a tax on employees and employers that is used to fund the Social Security system income tax - a personal tax levied on annual income taxes paid on tip income. * 1040-V payment voucher now included. Professional Tax System Tax and Accounting Software Corp. (TAASC TAASC Training Aids Support Center ) Phone: (918) 493-6500 DOS Overview Offering strong national coverage for both 1040 and business products, the Professional Tax System is a strong entry for mainstream tax preparers. The package is designed for interactive input, using conventional IRS form input. While calculation is on demand, the user may view a tax summary at any time during data entry to check accuracy. Diagnostics not only point out missing data but describe assumptions made by the software for potential gray areas and as an error-detection safeguard. Corrections can be made directly in form-view mode before printing without re-entering the input mode, as most other tax packages require. The program includes an integrated tax planning module and what-if analyses and supports unlimited multistate processing. MFJ-MFS comparisons are not available. It provides seamless integration An addition of a new application, routine or device that works smoothly with the existing system. It implies that the new feature or program can be installed and used without problems. Contrast with "transparent," which implies that there is no discernible change after installation. with TAASC's accounting and depreciation software. New for 1995 * Data files stored in compressed format. * Prior-year data transfer rolls forward to applicable state information. * Improved flexibility for printing supplemental schedules. * Depreciation asset capacity increased to 999 assets from 500. RAM RAM Software Inc. Phone: (800) 888-6217 DOS Overview Although RAM is one of the smallest of the software vendors covered in this roundup, it's a company on the move, with individual tax support for most taxable states. Business software is limited, however, to California, Kentucky California is a city in Campbell County, Kentucky, United States. The population was 86 at the 2000 census. Geography California is located at (38.919144, -84.263381)GR1. , Oregon and Pennsylvania. Data entry is made by income--expense categories. Screen layouts, available commands and help screens make learning and use easy. Data entry is among the fastest of any product tested. The software includes automatic MFJ-MFS comparisons, permits multistate processing for two states, performs what-if analyses and tax planning and allows notes and supporting schedules to be attached to every input field. New for 1995 No appreciable ap·pre·cia·ble adj. Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible. enhancements were noted. TaxWorks Laser Systems Phone: (800) 230-2322 DOS Overview TaxWorks is a well-designed, full-featured program that includes network support, laser forms and electronic filing capabilities in its base price. The 1040 product offers national coverage for many states, and the business and estate software covers 15 large states. The integrated individual and business screens support both batch and interactive processing, using an IRS form view. The program handles multistate processing for all states automatically, what-if analyses and tax planning (although not integrated with tax preparation). It's possible to attach supporting schedules to any one within the tax return directly from the input screen. Totals carry forward to the screen in red to indicate the presence of the underlying schedule. A complete IRS help system is line-sensitive and includes reference to federal regulations. State help is sketchy. The view and print options are very flexible. After calculating the return, the user may view any schedule, print single or multiple copies of selected schedules, federal, state or complete returns. New for 1995 * A 1994 CD-ROM version includes the entire Taxworks library. Software not purchased now can be accessed from the CD-ROM and printed after obtaining "pay-per-return" authorization. * K-1 viewing and printing options improved to allow access and printing from tax return view screens. * Status codes can help track redturns. Tax Machine SCS/Compute Inc. Phone: (800) 326-1040 DOS UNIX Overview Tax Machine is a feature-rich package well suited to both medium-sized and large firms. It's especially good for use with complicated tax returns. Extensive setup options allow customization of the software based on each firm's practice. While both batch and interactive data entry are supported, screen layout and prompts favor interactive input: Data can be accessed from IRS schedules or directly to the 1040 form by calling up supporting schedules from each line. Line-sensitive help screens are available for both federal and state forms. The company claims support for every line of every form. Support is also provided for automatically generated MFJ-MFS returns, unlimited multistate processing capabilities, what-if analyses and a fully integrated tax planning module. Practice management features include a status tracking system and user notes. The program is integrated with Datawrite and ATB, and the add-on Taxi bridge supports imported trial balance data in both the 1040 and business packages from virtually any accounting or write-up software. Well-designed screen layouts and the extensive help system make this comprehensive package easy to learn and use. SCS/Compute provides toll-free modem update capabilities. New for 1995 * Available on CD-ROM. * Customizable description lists to speed data entry for common names. * Label printing capability for K-1 recipients. * Optional worksheets include NOL NOL - Never Offline carryforward, depreciation in order entered and schedule B to tie back state and federal exempt interest. Foreign tax credit added to the 1041. * Client letters allow up to 50 standard paragraphs. * Two additional 1040 and three business states. Also added: pro formas As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma for 1041 and 5500 returns, and the 709, 990 and 5500 returns. Ultra Tax Creative Solutions Inc. Phone: (800) 968-8900 DOS Overview Ultra Tax offers a strong national tax product, with coverage for the majority of 1040 states and for most major business modules. However, 1041 support is available only for Florida, Indiana and Michigan. Both interactive and batch processing are supported, and the user may choose to input data in either the IRS form or by income-expense category. It's possible to call up a tax summary at any time during data entry to validate entries made; these data can be viewed as a separate window. Conventions used within the program, while consistent with Creative Solutions's other products (Write-Up Solution 11 and Office Management Solution), do not follow standard practices, leading to a longer-than-average learning curve. The manuals, video and tutorial provide sound training aids Any item developed or procured with the primary intent that it shall assist in training and the process of learning. . Ultra Tax offers unlimited multistate processing. It automatically calculates MFJ-MFS and supports both what--if analyses and integrated tax planning. Business software accepts input direct from Write-up Solution 11 and from ATB. New for 1995 * 990 and 5500 programs added. * Support included for oil and gas schedules for 1040 and 1065 programs. * Expanded state and local tax preparation programs now total more than 100 programs. RELATED ARTICLE: Why You Find Bugs Among the Bytes Hardly a software package is introduced without some programming errors--or bugs, as they are called in computer parlance Parlance - A concurrent language. ["Parallel Processing Structures: Languages, Schedules, and Performance Results", P.F. Reynolds, PhD Thesis, UT Austin 1979]. . But tax software is unique in a couple of respects--and more vulnerable than most other packages. Here's why: Each tax package actually contains many integrated software Separate software components or applications that have been combined into one package. See integrated software package. products--federal and several states and cities. A federal package that supports all 44 tax states actually has over 44 different software applications. In most cases, each must be revised every year. Even if the tax law does not change, most of the taxing authorities make numerous modifications to forms, which also means revisions must be made in the software. On top of that, the vendors make their own updates--to improve user--friendliness, add features and improve processing. After all that, software companies must submit their individual programming interpretations of ail changed forms to various tax authorities for approval--further complicating com·pli·cate tr. & intr.v. com·pli·cat·ed, com·pli·cat·ing, com·pli·cates 1. To make or become complex or perplexing. 2. To twist or become twisted together. adj. 1. the situation. Some vendors must change as many as 300 programs. While the IRS is generally prompt at approving each vendor's programs, many states are slow to respond, which delays shipments of some state programs until late January. While such delays and errors are often unavoidable, the vendor's response to them is what's important to users. Many customers measure a vendor's value by determining how a buggy Refers to software that contains many flaws. Many in the software industry swear that bugs are inevitable, and perhaps they are right. As long as we work in the competitive, pressure-cooker environment of our high-tech world, products will more often than not be developed too hastily and program was corrected. Were the errors reported immediately? Was a fix made quickly? These are questions that many customers should ask before switching to a new product. Where can they get that information? The best place is from current users. Ask the vendor to supply a list of 10 or so users and check them out. The process may not be foolproof, but it should provide key data for a buying decision. SAM W. STEARMAN, CPA, is the principal of an accounting and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects firm bearing his name, with offices in Oceanside, California Oceanside is the third largest city in San Diego County, California. The city has a population of 173,303. Together with Vista and Carlsbad, it makes up the Tri-City area. The city is just south of U.S. , and Carson City, Nevada The Consolidated Municipality of Carson City is the capital of the State of Nevada. A 2006 population estimate places its population at 57,701[1]. Carson City is now an independent city and is its own Metropolitan Statistical Area. . He is a member of the American Institute of CPAs. |
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