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CCH Axcess Tax

Two-Year Comparison - General Information, Income and Deductions

Two-Year Comparison report is produced based on your entries on Interview Forms 2YR-1, 2YR-2, 2YR-3, 2YR-4 and 2YR-5. The report will be produced for Forms 1120, 1120-F, 1120-FSC, 1120-RIC, 1120-REIT, 1120-PC, 1120-L, 1120-POL, 1120-IC-DISC, 1120-SF, 1120-H and 1120-C.

We will compare the information for income, deductions, tax computation, payments and Schedules M-1 and M-2 for Forms 1120, 1120-F, 1120-RIC, 1120-REIT, 1120-PC and 1120-C. We also will compare the information for Schedule M-3 for Forms 1120, 1120-F, 1120-PC, 1120-L and 1120-C. For Form 1120-FSC, we only compare the information for tax computation, payments, taxable income or loss on Schedule B, Part II and Schedules M-1 and M-2. For Form 1120-L, we compare the information on lines 8 (gross income), 19 and 21c (total deductions), 23 through 26, and 27 through 33 (tax and payments) of page 1 and information for tax computation on Schedule K. For Forms 1120-POL, 1120-SF, and 1120-H, the comparison will be made on page 1 only. For Form 1120-IC-DISC, we compare the information on lines 3 through 8 of page 1 and information on Schedules M-1 through M-4.

For the comparison purposes, the prior and current year returns must be the same type. The only exception is for Forms 1120 and 1120-H. Fields on Interview Forms 2YR-1, 2YR-2 and 2YR-3 are labeled for the particular return types. Fields on Interview Forms 2YR-4 and 2YR-5 are used for Forms 1120, 1120-F, 1120-PC, 1120-L and 1120-C only.

Two copies of the Two-Year Comparison report are provided, one in the taxpayer's copy and another in the accountant's copy of the return.

Use Interview Form 2YR-1 to enter income and deduction information from 2020. These entries are compared with the 2021 figures computed in the tax return.

Certain fields are labeled "(optional)" to designate optional accountant completion. If the detail information used to develop the "optional" entry has been provided, the optional amount does not need to be entered.

When entered, the "optional" entries are used to check the accuracy of the detail entries. If an optional entry does not agree with the computation for the optional entry, a diagnostic message is issued to identify the discrepancy.

For a Two-Year Comparison of taxable income, tax and credits, use Interview Form 2YR-2. For a Two-Year Comparison of Schedules M-1 and M-2, use Interview Form 2YR-3. For a Two-Year Comparison of Schedule M-3, use Interview Forms 2YR-4 and 2YR-5.