Preparing a Return or Extension for Electronic Filing

The Diagnostics report in Tax lists the descriptions of errors and warnings that could affect the accuracy of a prepared tax return. Electronic filing data should be qualified using the Diagnostic report. If a return or extension form does not qualify, the reasons are identified in the report. Diagnostics are cleared from the report after errors or warnings are corrected, the return is recalculated, and the report is regenerated. For information about using the Diagnostics report, see Reviewing the Diagnostics Report.

Click Diagnostics on the Review tab from an open tax return to display the Diagnostics report. You can also review or print the Diagnostics report by selecting Print > Print Return Sections > Preparer Reports from the Application menu.

Designating State Returns for Magnetic Media Electronic Filing

Use the following worksheets to designate a state tax return for electronic filing. Form and field-level Help are available with instructions on completing each worksheet.

State/Return Type	Worksheet
Arkansas / Partnership	Federal > General > Electronic Filing > Section 4
Arkansas / S Corporation	Federal > General > Electronic Filing > Section 4
New Jersey / Partnership	Federal > General > Electronic Filing > Section 4
New Jersey / S Corporation	Federal > General > Electronic Filing > Section 4

Qualifying Returns or Extension Forms

The Diagnostics report is an interactive report in Tax that lists the descriptions of errors and warnings that could affect the accuracy of a prepared tax return. Electronic filing data should be qualified using the Diagnostic report. If a return or extension form does not qualify, the reason is identified in the report. Diagnostics are cleared from the report after errors or warnings are corrected, the return is calculated, and the report is regenerated.

You can also review or print the Diagnostics report by selecting the Preparer Reports print option in Tax.

See and Reviewing the Diagnostics Report and Printing Preparer Reports for more information.

Qualifying Returns for New Jersey Magnetic Media

Qualified New Jersey nonresident individuals can participate in a Composite Gross Income Tax return, Form NJ-1080-C, and do not have to file their own income tax return with New Jersey, provided that they meet certain criteria.

Entities eligible to file composite returns on behalf of the above individuals are:

• Professional Athletic teams
• Partnerships
• Limited Partnerships
• Limited Liability Company
• Estates & Trusts
• New Jersey Electing S Corporation

The New Jersey Division of Taxation requires that the list of nonresident individuals (participants and non-participants) listed in Form NJ-1080-C Sch A, NJ-1080-C Sch B, and NJ-1080-C Sch C for Partnership and S Corporation return types to be filed with a Microsoft^® Excel^® file on diskette or re-writable CD if there are 25 or more participants. The system provides a diagnostic when New Jersey magnetic media is required for the return.

Links to the return, diskette, and Microsoft^® Excel^® file requirements are listed beside NJ-1080C - Diskette Specifications Directory on the following New Jersey website:

http://www.state.nj.us/treasury/taxation/prntgit.shtml

The Federal > General > Electronic Filing > Section 4 worksheet State Electronic Filing option or the return configuration set 1065/Partnership or 1120S/S Corporation electronic filing option, Create New Jersey NJ-1080-C diskette file, must be selected.

Verifying PDF Attachments

Some return types require PDF attachments when electronically filing. Open the Federal > General > Electronic Filing worksheet and verify if the required, optional, or both PDF attachments are present in the worksheet sections relating to PDF Attachments.

See the following topics for more information:

• About PDF Attachments in Electronically Filed Returns
• Attaching PDF Files for Electronic Filing
• Viewing PDF Attachments
• Deleting PDF Attachments