Dear KatrinaLO,
Your link to the forms release data shows that the Form 7203 is unsupported for e-file. That means that every S corporation shareholder that engaged in any one of the transactions listed below technically cannot e-file without it risk being considered a failure to file a complete return. Hypothetically, could the taxpayer e-file without including the Form 7203 and then paper mail the form separately to the IRS? The answer is not clear but perhaps it would be as good of an option as paper filing the entire return which has been a nightmare for both the IRS and taxpayers.
My understanding is that Turbotax's professional tax software will be able to electronically file the Form 7203. Is that correct?
Below is from the IRS instructions to Form 7203. Note how broad the list is as it includes distributions and loan repayments, both extremely common in the S corporation world.
Form 7203 is filed by S corporation shareholders who:
Are claiming a deduction for their share of an aggregate loss from an S corporation (including an aggregate loss not allowed last year because of basis limitations),
Received a non-dividend distribution from an S corporation,
Disposed of stock in an S corporation (whether or not gain is recognized), or
Received a loan repayment from an S corporation.
