Can I print out a filled out form, correct it with pen, and include other missing forms from irs website with my TurboTax filing (mailed in)

[f404]

Hello tax pros!

Hope you are all well. I have the following situation:

• Right now, I'm doing 2020 personal taxes (I have extensions, no balances due, and am owed a refund) via TurboTax Premier 2020.
• I have a single member LLC elected to be S-Corp.
• I filed the 2020 S-Corp 1120-S on time a few years ago - it had a loss of $13,000.
• I have the 2020 Schedule K-1 (Form 1120-S).
• In TurboTax Premier, I have added the information from the Schedule K-1 as part of my Schedule E (Form 1040)
• I will be printing my return from TurboTax and mailing it in since I can no longer file electronically.
• The instructions at the top of 2020 Schedule E (Form 1040) say the following:
  • Income or Loss From Partnerships and S Corporations — Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check the box in column (e) on line 28 and attach the required basis computation.

Questions:

1. On 2020 Schedule E (Form 1040), Part II, 28(e) is a checkbox that says: "Check if basis computation is required" - this box should be checked as per the instructions on that form (because the S Corp has a loss), BUT IT IS NOT CHECKED and I cannot find a way to check it in TurboTax.
   
   • Question: Can I print out my return in TurboTax and use a black pen to check that checkbox before mailing in that return?
2. According to the instructions at the top of 2020 Schedule E (Form 1040), I also have to attach the required basis computation.
   • Questions:
     • It looks like this should be done via IRS Form 7203, but that only came out in 2021, so it wouldn't be available in TurboTax Premier 2020?
     • For 2019, my former tax preparer used "Form 1040 Shareholder's Basis Worksheet Page 1" and "Page 2", and "Schedule E K-1 Reconciliation Worksheet - Qualified Business Income" to show basis - where do I find these forms in TurboTax or on the IRS website?
       
     • Since I will be printing and mailing in my return, am I allowed to download these additional forms from IRS website and fill them out and include them with my return?

Thank you all so much for any help or advice you can provide.

Best regards,

f404

[Mike9241 · Accepted solution]

 Questions: It looks like this should be done via IRS Form 7203, but that only came out in 2021, so it wouldn't be available in TurboTax Premier 2020? For 2019,

my former tax preparer used "Form 1040 Shareholder's Basis Worksheet Page 1" and "Page 2", and "Schedule E K-1 Reconciliation Worksheet - Qualified Business Income" to show basis - where do I find these forms in TurboTax or on the IRS website?
Since I will be printing and mailing in my return, am I allowed to download these additional forms from IRS website and fill them out and include them with my return?

The basis worksheets prepared by your former accountant were most likely prepared by the software used to prepare the S-Corp return and are not available at the IRS website or TurboTax but may be available on the internet.

I would suggest you either use the form 7203 

https://www.irs.gov/pub/irs-pdf/f7203.pdf 

or create a spreadsheet in the format like what the preparer gave you. 

[rjs]

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@f404 wrote:

• Question: Can I print out my return in TurboTax and use a black pen to check that checkbox before mailing in that return?

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Yes, you can do that, since you are filing a paper tax return by mail.

[taxlady28]

Any changes that you make will invalidate your TurboTax accuracy guarantee.  

[f404]

@Mike9241Thank you for suggestions! Yes, I believe my former accountant used UltraTax CS - that's where those worksheets came from.

Question: Will I get in trouble with the IRS if I use form 7203 to calculate my Shareholder's Basis for year 2020 since the form only came out in 2021 (i think)?

@taxlady28noted!

@rjsThank you for confirmation!

[Mike9241]

the IRS requires a calculation with no specific instructions on doing it. as you'll notice the form is undated so I can't see how you would get into a problem using it. 

your other choices are to use a spreadsheet or even loose-leaf paper as long as its legible and understandable by the IRS.  Free-style (spreadsheet or loose-leaf) creates a lot of work for you 

[f404]

@Mike9241 Thank you so much for the clear explanation!

[Mike9241]

 every form/schedule except the 1040 has an attachment sequence number in the upper right. that's the order they're supposed to be in. form 7203 has the number 203 so i'm guessing there is no higher number on your forms/schedules  so it comes last.