Thank you so much for expressing your concerns. Form 4626 is required to file with a corporation tax return unless a filing exclusion applies. Based on IRS Form 4626 instruction, taxpapers can choose to apply the safe harbor method (simplified method) if qualified. IRS clarifies rules for new corporate alternative minimum tax generally applies to large corporations with average annual financial statement income exceeding $1 billion.
If taxpayer qualified for safe harbor method (most corporation may qualify), they can click the "yes" box on Form 1120 Sch K Line 29c to avoid filing Form 4626.
If you have received an IRS letter regarding this issue, you may file amendment with updated Form 1120 with line 29c box checked yes. Or, you may also respond to IRS letter with Form 4626
We appreciate for your business and continuous support. Please feel free to contact us if you have any further questions.
I got the same letter. I have been doing a little research and it looks like this is now required for all C Corps. So why is it nowhere in Turbo Tax?
It's funny to see the replies by people (Turbo Tax bots) linking to the Turbo Tax forms website and the form isn't even listed.
Additionally, this new form is required for every Corporation, except REIC & S Corps. The 1st page MUST be completed to even determine if you need to proceed with completing the other 6 pages. It's not like you check a box and are automatically exempt.
If Turbo Tax doesn't update immediately and make this form available, then Turbo Tax is useless for Corporations. It cannot provide the basic forms REQUIRED by the IRS and as a business owner, we are left scrambling on websites trying to figure out how to complete the form. They should provide a refund for all of us who purchased the Business Product because it falsely advertises to provide ALL the forms needed to file taxes. We can use those funds to shop for another product.
Have you seen the "simplified method"? It's page 1 of the 4626. Of course it's a scaled down version of the entire 4626, but it still requires completion and needs to be included with the tax filing. So how is that an answer to the lack of a 4626 in Turbo Tax or the programming required to complete the form? The bots need better programming.
I'm not a BOT, I'm an unpaid volunteer on this board, BUT I am done talking to you.
If you don't like the programming of TurboTax Business (specifically, the failure to include a particular form), simply use another tax preparation product. Whining about it on this board will get you exactly nowhere.
It should also be noted, particularly by you, that neither of Intuit's two major DIY tax preparation competitors (H&R Block and TaxAct) include Form 4626 in their 1120 tax preparation products.
Good luck.
@lauracou wrote:
They should provide a refund for all of us who purchased the Business Product because it falsely advertises to provide ALL the forms needed to file taxes. We can use those funds to shop for another product.
There currently is no other consumer-level product that includes Form 4626 (the good news is you're done shopping).
You might want to use a tax professional with access to professional tax preparation software.
I am confused, how can a required form bu unsupported? And the form requires 3 years of past tax return data. So does this mean we cannot file our returns electronically because turbo tax does not have the required forms?
I am looking at page 1 and it appears to require 3 years of historical financial data. It is unfortunate that we have to enter this all manually when it is already stored in Turbo Tax. Please have turbo tax add this form immediately. The IRS set a 30 day deadline and I fear turbo tax will not meet the government requirements.
I'm glad that you're not a BOT because all of the prior responses seemed very cut and paste.
In any case, Turbo Tax should do better. As you said, maybe this product is just no longer suitable for business owners since the required forms are unsupported.
And yes, I have been very pissed off about this situation. I have been using Turbo Tax for my small business taxes for over 20 years. It's unfortunate that they are leaving us all in this situation.
@lauracou wrote:
I'm glad that you're not a BOT because all of the prior responses seemed very cut and paste.
The prior responses in this thread were links I posted re the fact that the form is not supported and links to IRS web sites. Other members here do habitually copy and paste answers since many of the questions that arise are the same and similar.
@lauracou wrote:In any case, Turbo Tax should do better. As you said, maybe this product is just no longer suitable for business owners since the required forms are unsupported.
I think that is generally the case for more complex tax scenarios and certain types of returns (1120s for example). Regardless, I agree that any required forms should be included in the products.
@lauracou wrote:And yes, I have been very pissed off about this situation. I have been using Turbo Tax for my small business taxes for over 20 years. It's unfortunate that they are leaving us all in this situation.
I believe disclosure is of utmost importance; customers should be made aware of exactly what they're getting (or not getting) prior to purchasing whatever product they are planning to purchase. If a particular product will not fit a customer's needs, then that customer should be made aware of that before making the purchase.
Thank you so much for expressing your concerns. Form 4626 is required to file with a corporation tax return unless a filing exclusion applies. Based on IRS Form 4626 instruction, taxpapers can choose to apply the safe harbor method (simplified method) if qualified. IRS clarifies rules for new corporate alternative minimum tax generally applies to large corporations with average annual financial statement income exceeding $1 billion.
If taxpayer qualified for safe harbor method (most corporation may qualify), they can click the "yes" box on Form 1120 Sch K Line 29c to avoid filing Form 4626.
If you have received an IRS letter regarding this issue, you may file amendment with updated Form 1120 with line 29c box checked yes. Or, you may also respond to IRS letter with Form 4626
We appreciate for your business and continuous support. Please feel free to contact us if you have any further questions.
Unfortunately Turbo Tax automatically populates NO on box 29C of Schedule K. In the business interview section the user is not asked if the company qualifies as a safe harbor. There are 2 questions related to Alternative Minimum tax -- but this 3rd crucial question is not asked and the box is automatically populated with the answer NO. So that is an error in the software. The first question asks if it is an applicable corporation and the explian this link says "If the average adjusted financial statement income for the three prior years is $1 billion (or $100 million if a foreign-parent multinational group), the corporation is an applicable corporation"
If you answer NO then the next question asks if the corporation is currently applicable because of a prior year.
However if you answer YES to question the followup question changes to "Does the corporation meet the requirements of safe harbor".
On the face of form 1120 section K questions 29a to c the if then logic is documented and Turbo tax has it WRONG in the PROGRAM. A NO to 29A is presenting 29B instead of 29C - and it populates row 29C even though the question was never asked. A YES to 29A is presenting 29C it is supposed to show 29B and then based on that answer show 29C. And a NO to 29A is presenting 29B instead of 29C
The PROGRAM LOGIC IS WRONG FOR SCHEDULE K line 29A and NEEDS TO BE FIXED.
Tax form:
29 Corporate Alternative Minimum Tax:
a Was the corporation an applicable corporation under section 59(k)(1) in any prior tax year? . . . . . . . . . . .
If “Yes,” go to question 29b. If “No,” skip to question 29c.
b Is the corporation an applicable corporation under section 59(k)(1) in the current tax year because the corporation was an applicable corporation in the prior tax year? . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” complete and attach Form 4626. If “No,” continue to question 29c.
c Does the corporation meet the requirements of the safe harbor method as provided under section 59(k)(3)(A) for the current tax
year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “No,” complete and attach Form 4626. If “Yes,” the corporation is not required to file Form 4626
Where is this posted on the sales page that you see when you are comparing products?
There is an error in Turbo Taxes Question and Answer programming and it populates the boxes wrong. Kind of defeats the point of using turbo tax if you have to review each line against the tax code and instruction forms.
If in fact the replies here represent Intuit Turbo Tax, being rude to users isn't acceptable.
Why let us file an improper 1120 return and then now tell us how to amend our return. For a very small business this is lousy support.
Apparently if you eFile you'll get the IRS notice that it is missing. I just did, very frustrating to not even have this topic come up in Turbotax
was question 29C checked yes on your 1120C. if so, you are telling the IRS you are exempt from filing form 4626. it may be that the IRS computers are not programmed properly so these notices are sent out in error.
Form 4626 is required to file with a corporation tax return unless a filing exclusion applies. Based on IRS Form 4626 instruction, taxpapers can choose to apply the safe harbor method (simplified method) if qualifies. IRS clarifies rules for new corporate alternative minimum tax generally applies to large corporations with average annual financial statement income exceeding $1 billion.
If taxpayer qualified for safe harbor method (most corporation may qualify), they can click the "yes" box on Form 1120 Sch K Line 29c to avoid filing Form 4626.
if you are exempt you can respond to the notice by saying you used the safe harbor simplified method and therefore are exempt from filing or you can submit form 4626
Right, and its a new form. I called the IRS but of course got dropped while she was looking at my company account. TurboTax (and I) did not get that marked correctly, someone else posted that their Q&A on that was in error. I didn't notice it but yes, the safe harbor should apply here and the new rules brought that $1b down to $500m. Much higher than my little Corp. Thanks for the reply