Release date—25 June 2020
2020 Tax Online Help—IMPORTANT NOTE
You’re unable to access online help by pressing F1 in your software. however, you can access it from our IRD Tax Guides 2020.
We recommend sharing this message to avoid confusion.
All 2020 returns have been updated to cater for loss carry-back.
If you're claiming a loss carry-back from 2021, in the 2020 return, enter the amount being claimed in the Losses brought forward section:
- We've added a new Loss carry-back from 2021 field to the Loss brought forward section.
- The amount of losses claimed can be loss carry-back and/or loss brought forward.
- The loss carry-back isn't included as a separate amount on the IRD Summary or in the E-Filed return. Only the loss claimed is sent to IR.
- The Client Tax Statement will display the loss carry-back separately.
- If integrated with Tax Manager, this amount will populate the Loss carry-back from 2021 field in the losses section of the 2020 year. The loss carry-back amount isn't updated to Tax Tracking.
If you claimed a loss carry-back from 2020 in the 2019 return, it needs to be offset in the 2020 return.
- If integrated with Tax Manager, enter the loss-carry back from 2020 in the losses section of the 2019 year. The value entered will populate the new field in Other Income. The field is not editable when integrated to Tax Manager.
- If integrated with Tax Tracking, enter the loss-carry back from 2020 directly in the new Other Income field.
- The IRD Summary and the E-Filed return will include the loss carry-back to 2019 as part of the Other Income amount.
- The Client Tax Statement will print the loss-carry back to 2019 separately.
The IR7 return has the following differences to the other return types:
- Both the Loss carry-back to 2019, and the Loss carry-back from 2021 fields are in Other Income.
- When distributing to the partners or owners, the loss carry-back from 2021 is part of KP26I Other passive income. The loss carry-back from 2021, should be shown in the same field in the receiving return. No change has been made to the distribution, so if KP26I has any loss carry-back from 2021, it will post to Other Income in the receiving return. In the receiving return you need to remove the amount from Other Income and enter it in the Loss carry-back from 2021 field. Warnings have been added in the IR7 and receiving return to remind you to do this.
An election must be made in myIR for loss carry-back before making the claim in the return, including for the partners or owners in an IR7.
Refer to Inland Revenue for more information on claiming the loss carry-back.
We've made the following changes for an IR4:
- Any loss offsets and subvention payments will now print above the deductions section in the Client Tax Statement.
- When AIM tax credits are transferred to the shareholders, we've added a row to the Client Tax Statement after provisional tax paid to show the transfer.
- If integrated with Tax manager, an AIM shareholders offset transaction will be created for the transferred amount.
We've included the use of money interest (UOMI) rates that came into effect on 08/05/2020:
- UOMI payable 7.00%
- UOMI receivable 0.00%.
We’ve fixed the following:
- When a 2020 tax return was filed, the tax manager status wasn't changing to Filed.
- The Client Schedules only showed the total residential rental income and deductions. It'll now also show the detail that makes up those totals.
- There were issues in an IR4 when claiming:
- less than the loss brought forward amount
- a loss when subvention payments received were greater than the current year loss.
- The validation log warning message and the trigger for whether an IR833 needs to be completed is now based on the Sale of property field, instead of Other income.
- In Tax Tracking, we’ve now added the return year to the transaction section of the practice and standard 901D letters. The year will print to the left of the transaction description.
- Open Tax Returns System 2020.
- Click Help and select About.
- Check the version number of each application:
|Tax Return System 2020||2020.1|
|Tax Return System 2019||2019.0a|
|Tax Tracking System||2020.1|