1040 tax prep software reviews.

Watching tax software evolve over the last 13 years is like watching a small child grow into a young adult. While each preparation package has its own strengths and weaknesses, packages have gotten much more mature over the years, thanks, in part, to the advantages brought about through Windows versus DOS, and automated processes versus manual tasks.

All the packages we reviewed in this issue have their own particular qualities. For example, one helpful feature is the questionnaire format like the one found in TaxACT that asks all the questions pertinent to high-income taxpayers. The answers then draw in the data to prepare the return. This is a cool feature for new preparers and clients alike. Since it can be redundant to the experienced tax pro with a recurring client, 2nd Story Software, developers TaxACT, provide the tax interview as an option, not as a requirement. ProSystem fx Tax underwent an entire facelift for this powerhouse, Swiss army knife tax prep system. TaxWise came out with integration with BNA Tax Research. TaxWorks was notable again for its built-in Tax Planner. TaxSlayerPro came with an included fixed asset manager. RIA's GoSystem Tax RS full-featured product keeps a perpetual back-up online. Drop down menus now connect you to RIA Checkpoint and PPC Online research from within the Creative Solution's UltraTax.

Another interesting development is the tax review questions provided by those like the one's Sharp Software developed. Based on the taxpayer's scenario, a list of questions alert preparers to verify that the taxpayer provided all the necessary information needed to produce a fully deductible, yet defensible tax return.

Why do we provide annual reviews of software, especially tax? Packages change, vendors come and go, and newer versions feature new features. In addition, consider how vendors must initiate, within a very short amount of time, any changes Congress passed--and this year is no exception.

To evaluate software in a real-world situation, our test case this year invoked AMT. We also examined other points, such as print speeds to check throughput productivity among the packages.

We narrowed this year's packages to the Top 10, and this year's notable exception is ProSeries. Still used by many, it was reviewed, but, along with a number of other creditable packages, was not selected. While all packages are worthy contenders, some are ready for a major navigational, functional upgrade to reinvigorate them and bring them back into the Top 10.

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ATX's Total Tax Office Offers Improved Error Checking

ATX's Total Tax Office provides features that are less about being fanciful and more about helping get the job done.

The navigation is improved in this year's product, making it easier to manage returns and enter data. The program features interactive forms, making it easy to navigate from page to page and link to supporting forms and worksheets.

I found the QuickStart navigational tutorial a wonderful help, as it demonstrated how easy it is to navigate to the appropriate form. The Jump To icon in calculated fields enables you to go directly to the supporting worksheet or to override the field.

The program comes complete with city, state and federal government forms. Additionally, the Total Tax Office version of the program is fully integrated with Total Tax Guide, a complete tax research library. This cooperation allowed me to jump from my 1040 form when I had questions and look at explanations in Kleinrock's Total Tax Guide.

E-Filing is free if you buy the Total Tax Office (or its 1040 Tax Office Plus or 1040 Tax Office). However, if you purchase an ATX program that doesn't include unlimited e-file, the company bills you only for those e-file returns created and transmitted through ATX's e-file servers.

ATX tax forms and worksheets have a Microsoft Excel style format, providing a familiar feel that facilitates data entry. When you finish entering data and are ready to print a finished 1040, improved error checking helps produce an accurate and complete product. Total Tax Office includes electronic filing capabilities for year-end W-2s and 1099s. As with income tax returns, the program includes a full error-checking feature to validate the data before transmitting forms to the IRS or the SSA.

ATX's forms library is called ZillionForms, because the system boasts more than 10,300 forms.

One of the pleasant surprises last year was my experience with ATX's phone support. The cheerful tone and desire to help was refreshing. This year's experience was equally pleasurable; the rep answered my questions about navigational problems I encountered. He alleviated my clumsy operating woes and showed me how to remedy them by using the JumpTo icon that looks like a bunny rabbit on the left side of every calculated field.

Case Study Results

The case study took a little longer than I expected. However, the process was relatively easy with deft maneuverability between the different forms, once I talked to ATX Support. The Jump To feature I learned about helped, allowing me to quickly make corrections. When I finished entering the case information, ATX's error checking feature not only identified potential problems, but guided me in the right direction on the road to recovery. All of the forms printed quickly and painlessly on my ink jet printer.

Summary

Many of the features in the Total Tax Office are also available in ATX's 1040 Office product. All of ATX's tax preparation products share the core functionality from their MAX tax prep program.

1040 can be an ugly word, and it is not even a word--simply a group of numbers. Total Tax Office from ATX strives to make your tax numbers easier to manage.

ATX

www.atxinc.com

877-7 ATX PRO

By Nan Bishop

ProSystem fx has added a "Worksheet View" for Data Entry

CCH Tax and Accounting (CCH) developed ProSystem fx Tax as a complete tax system to prepare forms 1040, 1120, 1065, 990, 706, 709 and 5500. Everything in the package integrates with all other programs CCH produces, including software for fixed assets, practice management, paperless engagements, tax planning, trial balance, document management, business analysis tools, write-up, the Web platform for remote access, and a host of other products. The system comes on a CD-ROM, plus a 3.5 inch floppy "permission diskette" that is necessary for installation.

ProSystem fx Tax's big new feature is the "worksheet view" data input interface, an alternative to both the "organizer view" and the interview data entry mode. CCH feels that the worksheet view consolidates the information in one location better than the other input modes. You can switch back and forth between the worksheet and interview modes without a problem. A new tutor covers the new view as well, so that you need not puzzle over it too long.

ProSystem fx Tax contains all the features you expect in an income tax package. Noteworthy in this product is its ability to integrate with CCH's tax research products on CD and online. This integration is context-sensitive; meaning pertinent tax research can be accessed while in the ProSystem fx Tax program. If Web access is available, you can click on the help drop-down menu and select "ProSystem fx on the Web" to connect to CCH's Web-based Tax Research NetWork.

CCH has also created a Web site specifically for ProSystem fx Tax users to download upgrades, news and other information. Like the tax research CD-ROM, the Web site is accessible from within ProSystem fx Tax. In addition, CCH's Global fx platform can be used to gain remote access to your client tax files for those working remotely.

Another neat feature of ProSystem fx Tax is the ability to custom design the tax preparation toolbar, so that the buttons used most frequently appear on the screen. Under "Options," click "Customize Toolbar" to accomplish the customization. Your configuration will not change, as long as you checked "User Sign On" in the installation screen.

In addition to providing all of the state programs, ProSystem fx Tax includes non-resident returns for all applicable states. The state forms are accessed from the same screen as the federal forms, so there's no exiting the federal module to get to the state.

Case Study Results

The data went into the program without a hitch. There were no questions about where data needed to go. Printing was easy and had none of the network concerns of some other programs. The network printing was transparent, requiring only that I identify the printer in the printer setup option of the File drop-down menu in the standard Windows interface. When the pages printed out, they were identical to all the other data sheets printed from other packages, except for some additional preparer worksheets and diagnostic information.