Dear Reader,

Here's a special "Tax Extra" edition with a few notes for those of you starting up tax season in earnest. This brief issue allows us to get you a few updates even sooner than our general issue, which will appear next week. We start by updating last month's article on the late extension of several tax deductions on 2006 returns. For all you tax preparers, hang in there!

~ Bill Teague, Editor

---

How to Handle Deductions That Aren’t on Form 1040

Tax Forms Printed before Three Deductions Extended Retroactively

Last month we told you about the Tax Relief and Health Care Act of 2006, which reinstates three expired deductions for individual taxpayers effective for the 2006 tax year. However, when the law was signed on December 20, it was long after the tax forms were already printed. So the 2006 Form 1040 doesn't explicitly state how to claim these deductions.

Fortunately, the IRS has supplied that guidance [IR-2006-195], which our tax authors set out in some detail in our "Tax Extra" Article.

What deductions does this affect? They are

1. The optional itemized deduction for state and local sales taxes.
2. The above-the line deduction for higher education tuition and fees.
3. The above-the-line deduction for educator expenses.

If any of these deductions affect your client, read more here. The article will also link to our December coverage and client letter for alerting clients about these deductions.

Of course, Intuit updates its professional tax software to reflect this late IRS guidance. See our Product Smarts section for more information.

---

Disappearing 940 EZ

Where Did My Form Go?

If your clients have relied on the Form 940 EZ in years past, they could be in for a surprise — the IRS decided to redesign its Form 940 to include the options provided earlier on a separate Form 940 EZ. Clients may think the form is missing in error.

For background on the new inclusive Form 940 we provide the following link to the IRS instructions for the 2006 version of the form.

Read what the IRS has to say about the new Form 940.

---

QuickBooks® 2007 and Form 941, Other Payroll Forms

Manual Payroll Forms Now Available from IRS

In earlier tax cycles, some of our QuickBooks customers may have taken advantage of the one-time tax table download and manual payroll forms that were available to users of earlier releases of QuickBooks. We’ve had several calls from users who are looking for Form 941 in QuickBooks 2007 to help them with their taxes – and as the tax deadline rolls closer, we expect more such calls.

Please let your clients know that the IRS has alerted Intuit that taxpayers are not excused of liability if they rely on outdated forms or data from this older arrangement ¯ and that Intuit has the responsibility to discontinue enabling the possible use of outdated forms or information. Therefore we encourage our customers (you and your clients) to rely on the IRS directly for manual forms if you are handling these chores manually, available from the government at

www.irs.gov/formspubs/index.html

Other Reading. Our knowledge base has these notes on this topic:

• Clickable tax forms
• Payroll taxes not calculating after February 15 

We Have You Covered

"Regular" Issue of Intuit ProConnection Is Coming at the End of the Month

Thanks for Your Time. We know this brief update affects only practitioners who are active in tax preparation. If you aren't involved in taxes, please ignore this brief newsletter but don't worry. Next week we will send you your regular issue of the Intuit ProConnection Newsletter.

And if you use QuickBooks® financial software, see our latest online training offerings.

Lacerte® and ProSeries® Professional Tax Software Stays Current for You

We updated our story on the last-minute reinstatement of selected deductions for the 2006 tax year, but if you are already using Lacerte or ProSeries professional tax software, Intuit has you covered with a rolling series of releases to cover such changes as shown:

Lacerte — Already on its third of five releases to cover such changes; see the release schedule here. Want to start using Lacerte tax software now? Call 800-765-7777 or visit the Web site.

ProSeries — Also on its third of five releases to cover such changes; see the release schedule here. Want to start using ProSeries tax software now? Call 800-945-2820 or visit the Web site.

---

Lacerte and ProSeries Software Training

Online Training Sessions Still Open. Each year, we offer live, online training to support our customers in using Intuit professional tax software. We have courses at the basic, intermediate, and advanced levels, subject to availability. See what sessions are still open as shown following.

• Lacerte: Register or get more information.
• ProSeries: Register or get more information.

---

Great Data Handling Includes Integration with QuickBooks® Financial Software

Review of Recent Articles. In case you didn't catch them last month or so, here are articles on how Intuit's professional tax software works harder and smarter for you than ever before.

• Lacerte and ProSeries Professional Tax Software Leverage Technology
• ProSeries Version of Source Doc Auto-Entry
• Lacerte Version of Source Doc Auto-Entry
• Head Start on Tax Season

---

Don't Forget New Training Opportunities on QuickBooks Software

Last month we announced our latest online training efforts in QuickBooks. Learn more here about our seven new Webinars and other valuable training opportunities.

Keeping You in Charge

For general matters or issues, you can mail letters and comments to Intuit Inc., Customer Communications, 2800 E. Commerce Center Place, Tucson, AZ 85706.

---

STAFF
Brandon Wilson, Publisher
Bill Teague, Managing Editor
Amy Munson, Web Production

---

MID-MARKET OPPORTUNITIES LATER THIS MONTH; RESULTS FROM RATES SURVEY TOO

In late January we publish a full issue of the newsletter, and look at those larger businesses that make the so-called mid-market opportunities. We talk to accountants who have succeeded in this area and share their best practices with you. Also we share the results from our 2007 Survey on QuickBooks and tax rates among you and your peers.

---

DEALING WITH HIGH DEMAND ON INTUIT'S TECHNICAL SUPPORT

QuickBooks Financial Software Technical Support. January marks the start of the “busy season” for our QuickBooks support team. To avoid waiting on the phone for an agent and losing productivity, consider using our Callback Web site. Follow the instructions on the site to leave your name and number, and our agents will call you when available, so you won't have to wait. QuickBooks Support Callback Web Page.

Lacerte Tax Software Technical Support. During tax season, Intuit opens up the phones for an extended day (Monday-Friday 6 a.m. to 5 p.m. PST; see Web site for weekend hours). If you can start at the very beginning of the day, you should have the best opportunity to reach an agent with a minimal wait on the phone. Call 1-800-933-9999. See all your Lacerte support options here.

ProSeries Tax Software Technical Support. During tax season, Intuit opens up the phones for an extended day (Monday-Friday 5 a.m. to 7 p.m. PST; see Web site for weekend hours). If you can start at the very beginning of the day, you should have the best opportunity to reach an agent with a minimal wait on the phone. To avoid transfers, call the following numbers depending on which product you are using: For ProSeries Basic and ProSeries Professional, call 1-800-434-6818. For ProSeries Express, call 1-800-557-5798. See all your ProSeries support options here.

---

NOTICE: DISCLAIMER OF LIABILITY
Intuit does not warrant or quaran-tee the accuracy of any statement or other information and materials provided in this newsletter. All articles and other information and materials in this newsletter (collectively, "Information") are provided for general information purposes only and are not intended to constitute legal, accounting or tax advice or opinions on any specific matters. The opinions expressed in Information are those of the author(s) and not necessarily those of Intuit. Laws and regulations change frequently and their application can vary widely based upon the specific facts and circumstances involved. You, and not Intuit, are responsible for the applicability and accuracy of Information as it relates to your practice or to your clients. Your use of Information does not relieve you of responsibility, including those to any third party, for matters involving your practice or your clients (e.g., preparation of tax returns, etc.) and you may not rely upon Intuit for advice regarding same. The provision of Information by Intuit is not intended to create, and your receipt does not constitute, any form of relationship between Intuit or the author(s) and you.