BNA Software — 706 Preparer/709 Preparer

Article Tools

• Print This Article
• Email This Article to a Friend
• Save This Article
• Order a Reprint

From the April/May 2008 Review of Tax Compliance Suites

The BNA 706 Preparer and 709 Preparer systems provide a valuable resource to practices involved in estate planning and who need a more specialized program for handling complex gifting and generational transfers. The two systems are independent of each other but are presented in this same review because they are related in nature and share similar functionality, interfaces and workflow processes. In addition to these programs, BNA Software also offers software for gift and estate planning, individual tax planning, corporate tax analysis, sales and use tax compliance and fixed asset management and depreciation. Pricing for the BNA 706 Preparer estate tax compliance system is $695 for the first user and $265 per additional user. The BNA 709 Preparer gift tax solution is $430 for a single user plus $80 for each additional professional user.

General Operations/ Ease-of-Use -- 4.5 Stars
As noted, the gift and estate programs operate independently of each other and are not integrated, but they share strikingly similar interfaces that open into a full-screen display with multiple panels. A navigation menu panel on the left offers an expandable view with links to the various pages of a 706 or 709 return, along with any subsidiary schedules or related worksheets for the currently open client. The primary work area is divided into two sections, with one showing a form replica and the other providing a worksheet data-entry panel. An additional area on the bottom of the screen displays diagnostics information and data validation features, alerting users to potential errors. All of the various panels can be resized and moved as desired. Traditional icons are provided across the top of the screen, with additional options that include the ability to recalculate the return, zoom in or out, run diagnostics and use the Return Editor function.

Data entry is very simple and intuitive, with the viewable form providing direct access to line data entry on the interview form and browser-style Next and Previous buttons allowing navigation between data-entry sections and form pages, as well as heads-down use of the tab key to move to the next field. The systems provide smart entry fields with pull-down selection lists and calendars, and users can add review notes to any line of a form or worksheet. When data is entered, it is automatically routed to appropriate schedules and performs calculations, and the programs bypass inapplicable fields. Line-specific IRS instructions can be accessed and displayed using a right-click menu. The programs do not offer a centralized client overview screen, but rather use a simple folder directory structure within the host computer. This gives very limited search and sort functions and provides no summary information or status.

Workflow & Productivity Tools -- 5 Stars
BNA’s estate and gift tax programs provide excellent support for complex gifting and estate scenarios, automatically generating subsidiary schedules. The BNA 706 Preparer supports all 50 states and Washington, D.C., and both programs automate the preparation of all required Federal forms. The systems are customizable to user preferences, including the ability to create templates and return sets that include predetermined forms, schedules and reporting options. Both programs enable the posting of “sticky notes” to anywhere on a page and offer spell checking, calculation override options, return histories and reporting.

Individual program features for the 706 system include the ability to manage zero federal tax and more complex issues such as split interest trusts and prior transfer credits. A wizard helps guide users through complex issues such as interrelated marital and charitable deductions, split interest charitable trusts, CLAT/CRAT, CLUT/CRUT and pooled income funds. The 706 system includes links to BNA Tax Management’s EGT Web Portfolios, and securities can be imported from such valuation programs as EstateVal, APPRAISE and Wallace Pricing. Asset lists can be exported. The BNA 706 Preparer also includes special alternate valuation treatment functions; support for stocks, bonds and dividends; linking assets to deductions; and alerts the user to missing data. It can be set to automatically update Sec. 7520 rates from the BNA Software website, as well.

The system also includes optional state tax modules for New York and other states. Reports include probate inventories, interrelated calculations, state death taxes, beneficiary details and supplemental schedules. The BNA 709 Preparer imports prior year data, transferring to supporting forms as necessary, and automatically calculates the annual gift exclusion. It also supports entry of split gifts and allows movement of gifts within a Schedule A, while the diagnostics function alerts users to missing information. The Donee Worksheet helps eliminate redundant data entry, while detailed gift histories are readily available. Reports include the donee worksheet, transmittal letters and supplemental schedules.