2022 Turbotax Business and shareholder questions

[SCurling1]

Just started my 2022 TbTx business download, PC based.

Auto loaded the last years data, and going through any edits and updates.  the next category is "Shareholders" info.  TbTx is forcing entry on that screen.

The business ownership is my wife and I.  When I enter myself, and then go to the next entry for my wife.

I mark the box, "no change in ownership for 2022".

TbTx pops up and says This entry is new and there MUST have been a change in ownership.

There have been no changes in our business.

TbTx is forcing me to acknowledge there is a "change in ownership" to get past this screen.

Should I just go back and enter all Business Information by hand?

[tagteam]

Are you preparing an 1120-S (S corporation return) this year (2022)?

Did you prepare the same return for the 2021 tax year? If so, did you transfer the 2021 return into the 2022 program?

[scurling]

Yes, sorry I should have explained my situation better.
I have used Turbo Tax Business for my S-Corp. for the past 15 years.
Year 2021 1120S was filed by TurboTax, and data  transferred into the new 2022 S-Corp software.

[tagteam · Accepted solution]

There have been issues with TurboTax Business in the past and you may be encountering one of them.

Occasionally, a user will accidentally indicate that a partner left a partnership on a 1065 or a shareholder ceased to become a shareholder on an 1120-S and then the transfer from one tax year to the next does not work properly. You might want to check your 2021 return to ensure something along those lines did not happen.

Failing that, however, you could be stuck re-entering the information manually.

[scurling]

I've checked my S-Corp 1120S  from 2021, and trice started a new return file for 2022.  There is no transfer of previous owners, officers, stockholders, or employee information.

I had to start the 1120S return for 2022 from scratch.  This isn't a lot of effort, but I don't get the added benefit of comparing last years entry values with the current 2022 entries as I work through the process.  It's as though TruboTax thinks this is my first year in business.

How can this be addressed with TurboTax outside of the user community?

[tagteam]

You can write a letter.

See https://www.intuit.com/company/executives

[DawnC]

Are you transferring in a tax file or a PDF?   @scurling   After starting a new return, are you choosing returning user and are you able to locate last year's tax file to transfer in?  

 

[scurling]

Based on my previous entries, I am transferring company data from the previous years TurboTax file.  Transferring data doesn't work with a PDF file.

My previous years tax file is easily found on my PC.  I have used Turbotax for the last 15 years.  I incorporated as an S-Corp in 2005.

I looked for that illusive entry on the Tbtx web site to send helpful comments.  Every time I call or speak with someone at Intuit, I comment on their horrible web site, and customer account setup.

[smallcoman2]

I have the same issue.  I note that no changes were made in ownership but TT still forces me to enter shareholder info. Since I have 2 shareholders, it makes me recognize a change in ownership to add the 2nd shareholder.  Then, it wants to know what date the change in ownership occurred?

According to the other questions asked, this is a very old problem that has been popping up since 2018.

I'm not sure how you fix it or if you can.  You may just have to walk through it as a change in ownership to see what happens later on.

It will ask you to input the shares for each shareholder.  I assume it is asking this to determine the percentage ownership of each shareholder.  So, hopefully it doesn't turn into something that prompts filing of other paperwork that will excite the IRS.  It will ask you to enter the date of the change, so it's likely that some paperwork will get included in your taxes that identifies a change that didn't really occur.

My suggestion is to ensure the percentages are the same as last year.  Keep notes on this issue with TT so that if you get questions from the IRS, you can show them that it is a bug that TT hasn't fixed.

[smallcoman2]

Looks like this is a bug for me. No matter what I check in terms of ownership changes, TT forces me to add shareholders info. Once I add the first, the addition of a second shareholders forces me to admit to an ownership change in the calendar year 2022.  

I just added shares for each shareholder to get the right percentage ownership, which I assume is used for the Schedule K-1.  Hopefully, this doesn't generate paperwork that will excite the IRS, since it might say there were ownership changes but will it have the same ownership as last year. I'm keeping notes so I can tell the IRS that TT has a bug and hasn't fixed it.  Seems this bug has been around for many years. 

As with all tax issues.....good luck, do your best and take lots of notes!

[AliciaP1]

I can't recreate your issues in a test return.  It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

At the top menu in the black line at the top of the page go to Online. 

1. From the menu, select Send Tax File to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click Send and then you will get a Token number. 
3. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@smallcoman2 

@SCurling1 

[tagteam]

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@smallcoman2 wrote:

Seems this bug has been around for many years. 

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It could be a bug since there have been many reports over the past few years, but it could also very well be an input error on the prior year return or some sort of prior year .tax file corruption.

The first step should probably be simply checking the prior year return (i.e., .tax file) to ensure the "final return box" was not checked or a shareholder/member/partner was not deleted or there was an indication that they left the entity. 

[smallcoman2]

1098468

[smallcoman2]

Thanks for the suggestion. Final year was not checked and both shareholders were listed.

[AliciaP1]

You need to answer No to the Has an Ownership Change question in the About Your Business section of the Business Info tab.  Once you do that, go through the Shareholder Information to verify your entries and the ownership change date question is removed.

@smallcoman2