Using the Federal Tax Printer

This Tax Printer program works using your Club data performing certain calculations, and then generating tax forms with these calculated values. The program does not alter your original club data stored within, although you may want to make a back-up of your data before running the Tax Printer. To properly use this program, you must make sure your accounting records are up-to-date.

The following steps describe how to use the tax printer. If you are looking for where to send the forms once they are completed, please see our Where do I file the tax forms FAQ.

Preparing the Club Data

Before generating your tax forms, you should make sure that your club accounting data is properly prepared. It is recommended that you wait until you have all the necessary data and have performed a reconciliation of all the partnership accounts before completing your taxes. Necessary data includes your year-end broker's statement, year-end bank statement, all buys, sells, dividends, interest, and service charges through Dec. 31. Once you have all the necessary data and have performed a reconciliation, close out the books for the year:

1. If your club held any non-U.S. securities during the year, these must be identified
   1. Go to Accounting > Securities > Security Settings.
   2. Click the Pencil/Edit button for the security in question.
   3. Change the Country drop-down, to reflect the country of incorporation.
   4. Click Submit to save any changes.
2. If your club owns (or sold in tax year) investments in REITs, mutual funds, or "other" (Limited or Publicly Traded Partnerships, etc.) securities, you must make sure that they are correctly identified in the database.
   1. Go to Accounting > Securities > Security Settings.
   2. Click the Pencil/Edit button for the security in question.
   3. Click the drop-down menu next to Security Type
   4. Select the type of security (REIT Other, Mutual Fund, Fixed Income)
   5. Click the Submit button, to save the changes.
   6. Repeat step 5 for all REIT, mutual fund, or other securities.
3. If your club received any dividends in tax year, you must enter the ex-dividend date for each dividend received. The ex-dividend date can usually be found at the corporation's investor relations web site and in various financial publications.
   1. Click the Reports Tab, from the tabs at the top of the screen.
   2. Under the Specialized Reports section, click the Security Ledger link.
   3. Scroll down to the bottom of the Report, and In the From and To: boxes type From: 1/1 of the previous year, To: 12/31 of the previous year.
   4. Select both Active and Inactive securities by highlighting Active and then holding the Control key and clicking Inactive securites. Now click Submit.
   5. When the list of security transactions appears on the screen, scan the list for transactions of Type Dividend. To view the dividends ex-div date click the link next to the date of the Dividend transaction. You may want to right-click the individual security transactions links and Open in New Window so that you keep the list of securities in the background. If it is incorrect, click on Edit button and edit the transaction data. If it is correct use your browsers back button (or close the window if you have opened in new window) to return to your Individual Security Ledger report.
   6. Repeat step 5 for all dividend transactions.
4. Enter valuations for 12/31/.
   1. Click the Accounting tab.
   2. Then click Securities from the list of links on the left-hand side.
   3. From the Security Section, click Create New Valuation, enter the date 12/31/and click Continue.
   4. In the Price fields, enter the price per share of each security held as of the close on December 31. You may either get the Price Per Share Of Each Security Held via ICLUBcentrals online quote service or enter them manually.
   5. Click Submit.
5. Run an Allocation of Income and Expenses report for the tax year.
   1. Click on the Accounting tab.
   2. Click on the Utilities link from the list of links on the left-hand toolbar.
   3. Click the Allocate income and expenses link and choose the tax year from the droplist and click Yes.
   4. If you have received dividends from a REIT, mutual fund, or "other" security, you will see a screen that will ask you for the dollar amount of qualifying dividends and Unrecaptured Section 1250 gains for that security. This will be reported to the club on Form 1099-DIV. This amount may be revised by the payer AFTER January 31, so you may want to check with them after you receive your Form 1099-DIV and ask if they anticipate correcting the issued Form 1099-DIV. Enter the amount of qualifying dividends and Unrecaptured Section 1250 gains and click OK.

Tax Printer Step-by-Step Help

Detailed help can be found on the IRS website's partnership page:
https://www.irs.gov/businesses/partnerships/index.html

Step 1 of 8

Club Name: The complete legal name of your club.
Founding Date (mm/dd/yy): The date your club was founded.
Club tax ID (EIN): The treasurer should have your clubs Tax ID number.
Legal mailing address of club: Enter your clubs legal address, as it is registered with the Federal Government.

Step 2 of 8

1. Type of partnership:
---Most clubs are formed as general partnerships.

2. Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership.

Before selecting Yes or No, be aware of partnership constructive ownership rules. An individual is considered to own an interest owned directly or indirectly by or for his or her family. The family of an individual includes only that individual's spouse, brothers, sisters, ancestors, and lineal descendants.
Note that for tax purposes a Trust is normally considered to be a separate individual, and not part of a family, even if it was established by a family member.
If you select Yes, fill out, manually, the information requested in Part II of Form 1065 Schedule B-1.

3. Is this partnership a publicly traded partnership as defined in section 469
---Mark appropriately. Most clubs will select No.

Step 3 of 8

4. Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year

---If your club had ten or fewer partners throughout the tax year (husband and wife counts as one partner; with no partners being non-resident aliens, a C corporation, or the estate of a deceased partner), you may elect to answer Yes to this question. If you select yes, Form 8893 will be generated by the software (file with your return when complete), also enter your designated TMP information below. (If you previously filed Form 8893 with the IRS, check the box, enter your TMP information, but do not file another form 8893.) You may also choose not to make this election, see IRS 1065 instructions page 20 for more detail.

---If your club had more than ten partners at any time during the tax year (see guidelines above) then your club is already subject to Partnership Level Tax Treatment and would answer 'No', but may still provide the name of your club's designated TMP below, if desired (usually the Treasurer).

Step 4 of 8

5. Does the partnership satisfy all four of the following conditions

• a) The partnership's total receipts for the tax year were less than $250,000.
• b) The partnerships total assets at the end of the tax year were less than $1 million.
• c) Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.
• d) The partnership is not filing and is not required to file Schedule M-3

---Mark appropriately. Most clubs will select Yes.

6. During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt
---Mark appropriately. Most clubs will select No.

7. At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property

---Mark appropriately. Most clubs will select No.

8. At any time during the calendar year, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account or other financial account)
---See page 20 of the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes" enter the name of the foreign country in the text box.

9. If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached:

---Mark appropriately. Most clubs will leave this unchecked.

10. Does the partnership have any foreign partners If "Yes", enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership:

---Mark appropriately. Most clubs will answer No.

11. Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return:

---Mark appropriately. Most clubs will leave this blank.

Step 5 of 8

There are now only two IRS centers for partnership returns. More information is located on page 4 of the IRS instructions for Form 1065.
Your IRS Center: Self-explanatory.

Step 6 of 8

Starting with the 2012 tax printer, the IRS is asking clubs to compare their recorded cost basis against the cost basis reported by the broker for any stocks that were sold during the year.

For each block of shares sold, clubs will need to either:

• Enter the reported cost basis from the broker.
• Report that the broker did not record a cost basis for a sale
• Report that they did not recieve a 1099 for for a sale

Step 7 of 8

The tax printer is now ready to generate your tax forms in PDF format. This may take up to a minute. We appreciate your patience.
Click Continue to generate the forms. ---Your forms will be generated here and you can view/print them after step 7.

Step 8 of 8

Click Continue to view a listing of your forms. If you do not have the Adobe Acrobat Reader program for readingPDF files please download Adobe Reader from the Adobe web site at:https://www.adobe.com/downloads/