This post is for tax return preparers who use Prosystem tax return preparation software only.
If you are like me and process your proformas in January, you could have errors in the calculation of the federal minimum tax credit.
On Prosystem Form P-5, Box 80, the system carried forward the alternative minimum tax (AMT) attributable to 2006 deferral items, but it should have been the AMT attributable to 2007 deferral items. CCH Prosystem has corrected this error in later releases of the software, so if you generate the proforma at the time you prepare the income tax return or reprocess the proforma, it will be correct. It’s also simple to just correct the entry on the form.
In the heat of tax season, we sent several tax returns that had to be corrected – fortunately before April 18.
Be alert for this issue for your clients who are subject to AMT.
Good luck in the final 12 days of tax season!