Sole Source - ProSystem fx Tax Software_Redacted.pdf

DEPARTMENT OF THE TREASURY

SF 1009 - FAR 13.106-1(b) SOLE SOURCE JUSTIFICATION FOR

ACQUISITIONS AT OR BELOW THE SIMPLIFIED ACQUISITION THRESHOLD

Treasury Standard Form – 1009 (Rev 10/18)

Prescribed by Treasury: DTAP 1013.106(b)

1. Identification of the requesting activity and contracting activity.

Internal Revenue Service (IRS), Large Business & International (LB&I), Northern Area Procurement

2.a A description of the supplies or services required to meet the agency’s needs.

With the many tax changes implemented as a result of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Internal Revenue Service’s Large Business & International (LB&I) which serves corporations, S subchapter corporations and partnerships with assets greater than $10 million needs to purchase the ProSystem fx Tax Software. This software is needed to perform complex foreign tax calculations on 1040s as Minimum Tax Credit, Passive loss limitations, Foreign Tax Credit limitation, Alternative Minimum Tax Foreign Tax Credit limitations, and automatically do any carrybacks between multiple years.

2.b Name and business size of the vendor. CCH Incorporated, Other than small

2.c Requisition No. 5000109492

3. IGCE/Estimated dollar value.

The IGCE is for the CCH ProSystem fx Tax Licensing.

4.a Identification of the circumstances that preclude competition (Check the appropriate box that applies).

Urgency Exclusive licensing agreements Brand-name Industrial mobilization.

Other 4.b Supporting information and facts (i.e. the details surrounding the requirement that supports the selection made in 4.a).

LB&I requires a 1040 tax computation software to handle the largest most complex 1040 tax cases. Including the need to handle Foreign Tax Credits, input in the billions, more than 100 flow thru entities, Net Operating Loss (NOL) carry forward and carry back computation and detail, Non-recaptured Sec 1231 loss tracking, Alternative Minimal Taxable (AMT) income calculation and other requirements listed below.

1. Ability to allow input of more than 100 flow thru entities (1065, 1120S, and 1041) K-1s information.

2. Ability to generate regular and Alternative Minimal Taxable (AMT) 8582 and all 7 related worksheets.

3. Ability to allow input of prior year passive activity losses (PAL), whether from

Schedule C - Profit or Loss from Business, Schedule E – Supplemental Income and

Prescribed by Treasury: DTAP 1013.106(b)

Loss or Schedule F – Profit or Loss from Farming activities and include ordinary losses, 1231 losses, ordinary business losses, Schedule D – Capital Gains and Losses, passive losses, etc. for regular and Alternative Minimal Taxable income.

4. Generate list of passive activity losses to subsequent year, entity by entity and type of schedule C / schedule F differentiated (whether PAL is 4797, Schedule E, Schedule C, capital loss, etc.) for both regular and alternative minimal taxable passive activity losses.

5. Ability to be able to compute tax from passive activities for Form 8582-CR and generate all related worksheets.

6. Ability to allow input for prior year unused passive credits for Form 8582-CR.

7. Ability to be able to compute allowed research credit for each flow through entity based on each flow through entities’ own income and deductions.

8. Ability to input information for basis and at risk limitation for each flow through entity.

9. Generation of regular and alternative minimal taxable income Form 6198 (at risk) and show allocations when there’s limitations. Must generate basis worksheet and show allocations when there’s limitations. Results of any basis or at risk limitations must flow to schedules E, 4797, schedule D, 8582, Schedule A, Form 4952, etc.

10. Must allow for treatment of capital gains/losses from flow throughs to be treated as passive (election).

11. Ability to be able to compute allowable passive losses and nonpassive income for each Publicly Traded Partnership (PTP) based only on each individual PTP. Must carry passive losses to Schedule E without going through Form 8582.

12. Ability to be able to compute Form 8903 from flow through data, as well as schedule C data.

13. Ability to be able to generate Form 3800 and allow entry of each type of credit as reported on K-1s.

14. Ability to generate list of carry forward general business credits by type of credit and allow input of carry forward credits by type and year.

15. Ability to be able to carryforward and allow carryback of all types of credits.

16. Ability to be able to compute amount of current year net operating loss and Alternative

Tax Net Operating Loss Deduction (ATNOLD) and provide for carryforward or carryback.

17. Allow for Capital loss carryforward and unrecaptured Sec 1231 carryforward.

18. Ability to provide worksheet showing US and foreign source income summary, breaking out Total, US, General limitation and passive.

19. Ability to allow input of Form 1041 K-1 and Form 1065 K-1 with foreign transactions to have multiple baskets and allow input of country.

20. Ability to be able to designate as foreign: interest, dividends (qualified and ordinary), Schedule C, Schedule E, or Schedule F income and capital gains/losses.

Prescribed by Treasury: DTAP 1013.106(b)

21. Ability to provide worldwide capital gains worksheet for line 18, F 1116 for regular and AMT and compute the capital gains tax adjustment on foreign source qualified dividends and capital gains for line 1a, Form 1116.

22. Ability to be able to compute and have worksheet for pro rata share of allocation losses for Form 1116 that flows to line 16, F 1116.

23. Allows for expatriate income and expenses, compute Form 2555, or generate 1040NR.

24. Ability to provide detail statements for Form 4952, investment interest paid, carryforward amounts of investment interest, composition of gross income held for investment, net gain from disposition of property held for investment, net capital gain from disposition of property held for investment, and investment expenses.

25. Schedule K-1 input must allow for investment interest to show as flowing to either Schedule E or Schedule A.

26. Ability to allow for charitable donation input for all current year and carryforward categories (i.e., 50% cash, 30% cash, capital gain property subject to 30%, etc.). Must provide worksheets to show limitation and amounts used and available for carryforward.

27. Ability to compute research credit limitations from each schedule K-1.

28. Ability to generate detailed statements and worksheets for all parts of Form 8960.

29. Provide detail worksheets for Form 6251, depreciation recapture, passive activities, loss limitations.

30. Ability for input and of depletion items from schedule K-1s and compute AMT preference items for Intangible drilling costs.

31. Allow for Schedule D, Schedule 4797, Form 4952, and charitable contributions to be computed for AMT purposes.

32. Ability to generate multiple scenarios and save them as different files.

33. Ability to input year one and then add subsequent years, with the carryforwards automatically prepopulating subsequent years.

34. Ability for input in billions (10 character or more)

5. Any other important information.

N/A

6. Certifications and Approvals.

6.a Program Office certification (Requiring Activity). I hereby certify that the supporting information and data provided and which form the basis for this justification are accurate and complete to the best of my knowledge and belief.

Name: Date:

Signature:

6.b Contracting Officer approval. In accordance with FAR 13.106-1(b)(1), as a warranted https://www.acquisition.gov/?q=/browse/far/13

Prescribed by Treasury: DTAP 1013.106(b) contracting officer, I hereby determine that the circumstances of the acquisition make only one brand-name or source reasonably available for the reasons provided above; therefore precluding competition and supporting the Government’s determination to solicit as a brand-name requirement or solicit and award to the vendor stated in section 2.b.

Name: Date:

Signature: