BNA Software – 706 Preparer & 709 Preparer

The
customizable interfaces for each
of the programs enable users to
set the program to show the data
they need, provide quick access
to various forms, schedules and
worksheets, and enable the user
to run diagnostics at any time during
the data-entry process. Actual data
entry is performed via entry fields,
but a replica of the actual form
is available in a split-screen,
with data automatically routed to
other areas where the same information
is needed, and performing necessary
calculations.

BNA’s
Smart Data Entry system helps guide
users through the 706 or 709 process,
automatically adding schedules and
creating continuation schedules
as needed. Calculations included
in the 706 program include Split
Interest Charitable Trusts; Prior
Transfers Credit; Interrelated Marital/Charitable
calculations; Schedule B stocks,
bonds, dividends and interest. It
also automatically prepares the
Estate Tax Closing document, Probate
Inventory Report and reports documenting
computation of state death taxes.
Additionally, it automatically updates
Sec. 7520 rates via the Internet.

The 709 program calculates split
gifts swiftly and posts gift information,
supports direct import of split
gifts from the spouse’s 709
return and automatically allocates
annual exclusions. The Allocation
of Annual Exclusions report details
how the limitation of the annual
exclusion is applied when there
are multiple gifts or large gifts
to a donee.

Both programs allow users to attach
notes to any form line, and a built-in
and ‘always on-screen’
diagnostic message center notifies
users of missing or erroneous data,
with hyperlinked text to easily
get to the form or schedule where
the error is. Additionally, an Auto
Backup feature provides protection
against data loss. The creation
of Return Sets enables users to
set up and save combinations of
IRS forms, schedules and reports
so that a full, ready-to-send copy
of the return can be printed, with
customization for each recipient.

Integration/Import & Export – 4 Stars
The 706 and 709 programs share selected
information via a common database,
allowing data to move between, as
necessary. Both products integrate
with BNA’s Estate and Gift
Tax Planner (see review on page
36), but do not have the capability
to import or export from disparate
systems or to common data file formats.

Support/Training & Help System – 5 Stars

The built-in Help system provides
access to context-specific information,
as well as relevant IRS instructions
and the full text of IRS Publication
448, 561 and 950. The 706 program
also provides IRS Publication 559
and 3920. Support is available via
toll-free phone-based contact, online
FAQs and the Knowledge Center on
the BNA Software web site, which
includes in-depth analysis of recent
code changes. BNA offers multiple
training options, including on-site,
web-based and instructor-led local
and regional seminars. The company
also gives frequent free product
demonstration seminars. Demo versions
of the software are downloadable
online, as are periodic program
updates.

Product Evolution & Vendor Vision – 5 Stars
BNA Software introduced the market’s
first Windows-based 706 and 709
forms products in the mid-1990s
and quickly adopted the 32-bit technology,
which facilitated a number of program
improvements including easy data
input, scrolling continuation forms
with spell checker and the 706 program’s
split-screen capability to review
form results.

Sue
Jones, marketing communications
manager for BNA Software, says the
company is evaluating expanding
its software line. ‘We are
considering a 1041 tax module,’
depending on market research, she
said. ‘For BNA 706 Preparer
we are expanding import capabilities
from estate valuation programs and
will offer separately priced state
forms.’ The next release of
BNA 706 Preparer will include an
ability to import data from EVP
and the availability of state forms
for California and Florida. She
said BNA is also evaluating the
addition of e-filing capabilities
for 709 compliance.

Relative Value – 5 Stars

While many larger tax preparation
suites now include preparation for
forms 706 and 709, this is an area
of specialty for BNA Software. The
BNA 706 Preparer and BNA 709 Preparer
programs offer excellent automation
and guidance for estate and gift
tax compliance. They boast an outstanding
assortment of calculators and automated
reports that further the value of
the programs, making them ideally
suited to tax and legal professionals
who provide estate planning services,
especially when combined with BNA’s
Estate and Gift Tax Planner.

2004 OVERALL RATING:

This review section examines tax
software that did not meet one or
more of the requirements. That is
not intended to diminish the quality
of the software in this review.
We had to draw the line somewhere
regarding our prototype office’s
needs, and these products here simply
take a different approach to their
offerings. For this review, there
is no prototypical firm because
each of the products is quite different
in their form support and feature
sets. There are a few that barely
missed the Tax Suites cut because
of one missing module or the lack
of full state support, and there
are programs that focus solely on
one or two areas of compliance.
So we are not comparing apples to
apples here (it’s more like
a bowl of mixed fruit), and therefore
direct comparisons were not always
possible. Each product in the review
is examined and given a score in
several areas that users and vendors
determined were key aspects in using
tax preparation software, aiding
professionals in comparing those
aspects and making a purchasing
decision. The products in this review
section received scores in the following
six areas:

Learning Curve addresses the ease with which new users are likely to grow comfortable and proficient with the program.

Use/Workflow & Productivity Tools involves the intuitiveness of the user interface (how well a user can get around) and the way
work is handled from start (interview)
to finish (receipt of return). This
includes tools that help professionals
keep track of client and IRS status
for returns, as well as additional
tools such as integrated calculators
and cross-form linking that streamline
the entire process.

The Integration/Import & Export rating assesses the program’s capability to use data between modules, how it exchanges data with software from other vendors, and how the program retrieves existing data from the previous year.

Support/Training & Help System looks at training options and how the vendor has incorporated assistance features into its program,
the quality of its support documentation
and the extent of its online help
component, whether it be simple
FAQs, online user communities or
more advanced systems.

The Product Evolution & Vendor Vision rating is reflective of the company’s commitment to continued development of its product by looking at the technological culture of the company and its product development history.

Relative Value will provide a subjective determination of the dollar-value ratio of the software. While it is often said
that, ‘you get what you pay
for,’ the most expensive option
does not necessarily guarantee the
best value, nor is the product with
the lowest sticker price always
the greater bargain. On this line,
we will look at the value of the
features and tools provided in a
software suite and provide a judgment
on how well its price matches its
offerings.

Finally, the Overall Rating will provide the reviewer’s general assessment of the product. An Executive Summary follows the review section, providing a brief synopsis of the reviews along with a summary chart with products and their scores in each area.