UltraTax CS Tax Software – Everything You Need to Know 

Accounting firms and tax professionals are increasingly relying on modern software to improve efficiency and streamline workflows. UltraTax CS is particularly beneficial for startups, small accounting practices, and mid-sized firms. In fact, 69% of firms using UltraTax CS have fewer than 50 employees, highlighting its suitability for smaller teams looking to scale efficiently.  

With features like intelligent calculations, advanced diagnostics, seamless data sharing, and e-filing, it streamlines workflows, reduces errors, and ensures compliance with constantly changing tax regulations. 

Whether you’re managing simple individual returns or complex multi-state filings, this guide covers everything you need to know about UltraTax CS – from features and pricing to setup tips and best practices. 

What is Ultra Tax CS Software? 

UltraTax CS is a professional tax preparation software developed by Thomson Reuters. It is designed for accounting firms and tax professionals who handle individual, corporate, partnership, trust, and tax returns.  

The software provides intelligent calculations, advanced diagnostics, seamless data sharing, and e-filing capabilities to improve accuracy and efficiency. While it is primarily an on-premises solution, firms can also host it on the cloud for greater flexibility and remote access. 

Features of Ultra Tax CS Software 

• Workflow Optimization – Complete your timely and accurate tax compliance engagements with tools that streamline processes and serve a wide range of client opportunities. 

• Extensive Returns & Forms Coverage – Handle federal, state, and local filings easily, including 1040 individual, 1120 corporate, 1065 partnership, 1041 estates and trusts, and multistate returns. 

• Intelligent Calculations – Preview real-time calculations as you enter data, instantly see implications for clients, and ensure accuracy in complex tax scenarios. 

• Seamless Data Sharing – Eliminate repetitive entries with automatic data transfer across related returns, reducing errors and saving time. 

• Advanced Diagnostics – Get alerts for missing or incomplete data with instant checklists and create client emails to request the required information. 

• Data Mining Tool – Identify advisory opportunities and spot clients for your firm impacted by tax law changes or new services with powerful search capabilities. 

• E-Filing & Online Dashboard – Monitor every step of your e-file process with thorough error checks and track return status anytime, anywhere via the online dashboard. 

UltraTax CS Software: Pricing and License 

UltraTax CS Software pricing is tailored to your firm’s size and needs. Costs depend on the number of users, tax returns, and states or jurisdictions covered. Exact pricing is not publicly listed; firms can request a personalized quote directly from Thomson Reuters. 

Licensing Options 

• Per-Return Pricing (PRP): With a PRP license, you pay a fee for each return prepared that is not covered by an unlimited license. PRP codes track transactions and link them to specific clients. 

• Multi-Office Licensing: UltraTax CS offers two configurations: 

• Branch (Multi-Office): Designed for firms operating across multiple branch locations. 

• Office Share: This is for independent firms sharing a single UltraTax CS installation.   

Additional licenses may be required for firms with multiple offices, depending on how the setup is configured. 

Benefits of UltraTax CS Software for Tax Professionals  

1. Seamless Integrations 

UltraTax software easily integrates with products like TaxCaddy, 1040SCAN, SPbinder, Onvio Firm Management, Ledgible Crypto Tax Pro, and SafeSend Returns for signing and managing digital documents, automating manual tasks. Works seamlessly with all CS products, including Accounting CS, Accounting Payroll CS, Practice CS, and more. 

2. Supports Multiple Tax Forms 

Handles various federal tax forms, including 1040, 1041, 1120, 1120C, 1120S, 706, 709, 990, 5500, plus over 200 individual and business state and local tax returns. 

3. Cryptocurrency Reporting 

Offers client organizers and data collection tools to track virtual currency use. Firms can connect to clients’ crypto portfolios, streamline workflows, and accurately report crypto transactions on tax returns. 

4. Comprehensive Training & Support 

Provides training via written documentation, videos, and virtual or on-site expert instruction tailored to your firm’s needs. Gain insights into the latest best practices and maximize your investment in UltraTax CS. 

What Didn’t Fit Well- Ultra Tax Drawbacks 

Cost 

While UltraTax CS offers robust features, its pricing can escalate quickly. After introductory promotional rates expire, costs rise steeply, making it an expensive choice for small accounting firms. 

Customer Support 

Customer support can be slow or less responsive than expected. You have to rely on peer groups and online communities for quicker solutions when issues arise. 

Complexity 

UltraTax CS has a steep learning curve. For some preparers, particularly with complex business returns, the software feels less intuitive and can make certain processes more time-consuming than necessary. 

How to Set up UltraTax CS for a New Client Online? 

• Ensure you’ve configured the app and entered firm, preparer, reviewer, staff, and PRP preparer block info. 

• Click New Client on the toolbar to open the New Client window. 

• Enter a unique Client ID (up to 11 letters or numbers). Use the same Client ID in Ultra Tax CS and Fixed Assets CS for integration. 

• Select a preparer from the dropdown and choose a staff member and a reviewer if needed. 

• Select a personal preparer block or a different PRP preparer block if required. The preparer address block updates automatically based on your selection. 

• Pick the Ultra Tax CS federal entity (only installed entities appear). 

• Enter the client’s EIN or SSN. If not yet received, enter a hyphen (-) or lowercase “a” to indicate “Appl’d For.” 

• For PRP-licensed federal returns or alternate firm name printing, enter the client’s PRP code. 

• Click Advanced Properties for optional tasks.  

• Click Add State(s) and select locations to add state or city returns. 

• Click “OK” to open the new client in UltraTax CS and start entering data. 

• To change a client ID, go to File > Rename. 

• To update other client information, go to File > Client Properties. 

Best Practices for UltraTax CS Software  

Follow these best practices to work faster and more accurately in UltraTax CS: 

• Press F8 to view prior-year inputs since UltraTax does not display prior-year figures next to input fields by default. 

• Use two-year comparisons to spot differences in client data. Add comments to explain discrepancies and enter totals for new clients to make the tool more effective. 

• Customize client letters under General > Letters to generate proactive reminders. UltraTax can automatically create notes like “Your child is turning 17, so your Child Tax Credit will decrease.” Add your own custom paragraphs for personalized communication. 

• Use To Do’s to track missing information and flag questions. Send an auto-populated Missing Data Email under File > Email re: Missing Data once everything is updated to save time on client follow-ups. 

• Add custom statements to numeric fields by selecting the field. Choosing Menu > Edit > Custom Statements. Switch the format to description and amount for better documentation. 

• Review the Apportionment tab carefully to avoid mistakes, since sales apportionment rules vary. Check state depreciation thoroughly, especially in tabs beyond the first, and tag fixed asset locations so they flow correctly into the apportionment area. 

• Press F7 to open the calculator and switch it to 10-key mode with a tape. Use it to quickly combine items (for example, add marketing and advertising together into one expense line). 

• Switch the calculator into 10-key mode with the button at the top left and save calculation tapes next to the input fields. Rely on custom statements when you need more detailed documentation than a plain tape. 

Why Host UltraTax CS on the Cloud? 

Hosting UltraTax CS in the cloud provides numerous advantages for accounting and tax firms. You can move your entire Thomson Reuters suite to a secure cloud workspace, ensuring seamless integration across tools. With all tax data synced in real-time, your team can collaborate effortlessly from anywhere in the world.

Here are the key benefits of hosting UltraTax CS in the cloud for your firm:

• Remote Access from Anywhere: Cloud hosting allows tax professionals to access UltraTax CS securely from any device, eliminating the need to be physically in the office. 

• Enhanced Security: Cloud providers like Ace Cloud Hosting offer enterprise-grade security, including data encryption, multi-factor authentication, and continuous monitoring, keeping your sensitive client data safe. 

• Automatic Updates: Hosting UltraTax CS in the cloud ensures it is always up to date with the latest software patches and regulatory changes. 

• Scalability: Easily scale resources like storage, processing power, or user licenses during peak tax seasons without investing in new hardware. 

• Cost Efficiency: Eliminate the need for servers, backups, and maintenance to reduce IT overhead; pay only for the resources you use. Read this UltraTax hosting pricing guide to learn more about factors affecting its cost.

• Collaboration Made Easy: Multiple users can work on client files simultaneously without version conflicts, improving team efficiency. 

• Disaster Recovery & Backup: Cloud hosting includes automated backups and disaster recovery options, ensuring no data loss in case of hardware failure or unexpected events. 

• Performance Optimization: Cloud environments provide high-performance infrastructure for faster calculations, processing multiple returns without lag. 

• Regulatory Compliance: Many cloud providers comply with industry standards such as ISO, SOC, and HIPAA, helping accounting firms meet data protection and privacy requirements. 

How to Choose the Right UltraTax Hosting Provider? 

• Reliable Uptime: Ensure the provider guarantees high uptime (ideally 99.9% or higher) so your UltraTax CS environment is always accessible, especially during peak tax season. 

• 24/7 Support: Look for providers offering round-the-clock technical support to quickly resolve any issues or downtime. 

• Compliance Certifications: Check for certifications like SOC 2, HIPAA, or ISO to ensure your data meets regulatory and security standards. 

• Transparent Pricing: Compare costs, including hosting fees, license charges, and any hidden or extra fees to avoid surprises. 

• Smooth Migration Process: A good provider should offer a guided migration with minimal disruption, ensuring all your files and settings are transferred safely. 

• Customer Reviews & Testimonials: Read client feedback to check reliability, service quality, and overall satisfaction with the provider. 

• Free Trial or Demo: Test the provider’s platform through a trial or demo to verify performance, usability, and compatibility with your workflow. 

Take the Next Step – Host UltraTax on the Cloud 

UltraTax CS delivers accuracy, compliance, and efficiency for accounting firms. However, as an on-premises solution, it has some limits. Local installations, manual updates, and hardware dependencies often add extra IT workload and complicate remote collaboration.  

Hosting UltraTax CS on the cloud provides secure remote access, automatic updates, real-time collaboration, and enterprise-grade security, so your firm can access UltraTax CS with full power without the limitations of on-site infrastructure.