You'll need to sign in or create an account to connect with an expert.
"IRS Proposes New Form 7203 for S Corporation Shareholders to Report Basis Computations with Form 1040"
If I understand it correctly, 7203 is for recording distributions that you as a shareholder received. So this would be a part of your 1040 filing
The form 7203 has been set to be available 3/31/2022. It will be available for print and mail but not for e-file. The form availability table has been provided by clicking here for your convenience.
Lindsey,
Does Turbotax realize that by not providing an e-file version of Form 7203 they will be causing a huge number of S corporation shareholders to have to file paper returns at a time when the IRS cannot even process paper returns from last year? Distributions and loan repayments from S corporations are extremely common and even a modest distribution or loan repayment would trigger the Form 7203 filing requirement. Add to this list of affected taxpayers, those S corporation shareholders who had stock redeemed or were allocated an aggregated loss for the year.
Respectfully,
mtzttax
CPA, MST
Please reach out to TurboTax Customer Support to speak directly with an agent to express your concern regarding Form 7203.
What is the TurboTax phone number?
Hello Michelle,
I called the 800 number but I could not get past the computerized interviewer. I tried using the words e-file, e-file problem, missing e-file form, and Form 7203. Every time the automated response was "I'm sorry...I don't understand...I can't help you, etc.".
mtzttax
You can try calling earlier in the day when the call volume is lower.
I believe there's some confusion. I had no problem getting through the phone system but I could NOT get past the automated interview process. I was repeatedly challenged for more information on the reason for my call but your computerized response system would not accept any of the responses I gave. As I mentioned in my earlier post, I mentioned e-filing problem, missing e-file form, Form 7203 missing, etc.
You can view the forms availability here. It shows the form will be available on March 24, 2022 to file by mail but unsupported by e-file. @mtzttax
If you need additional assistance, please comment below.
That is very disappointing news. Turbotax obviously does not understand the significance of this issue to individual tax filers. It almost certainly affects the majority of shareholders in S corporations. It's the individual Form 1040 filers that have the Form 7203 filing requirement, not the S corporations themselves. So the affected 1040 Turbotax user group is significant.
The IRS appears to be aware of this issue with respect to farmers and fishermen first because of the unique March 1st filing deadline they have in some situations. Here's the IRS news release. Perhaps they will extend it to all Form 7203 filers but that's not clear.
If it wasn't obvious in my last response, the impacted group are those individual Form 1040 filers who want to file electronically - e-file. That's the target group in question. No sane Turbotax user would want to file a paper tax return these days if they can free file through Turbotax.
Respectully yours,
mtzttax
@mtzttax wrote:
That is very disappointing news.
This might be cold comfort at this point, nevertheless:
A basis worksheet has been required (under similar circumstances) since circa the 2018 tax year and TurboTax has not supported e-file for that worksheet either.
Now that a proper form (7203) has been drafted by the IRS, hopefully e-file will be implemented in the program for the form at some point in the not-too-distant future.
I appreciate your candid response. You are correct that the basis schedule has long been required. What has changed is that the IRS is stepping up the enforcement of this requirement and by creating the Form 7203 they are removing the excuse that there was no way to transmit the old style informal basis schedule electronically. The last thing the IRS needs right now are more paper forms which is why they came out with immediate relief for farmers and fishermen who were trying to electronically file by March 1st due to the unique filing rule that applies to them in lieu of paying quarterly estimates. Hopefully, the IRS will see the obvious similar problem that the vast majority of S corporation shareholders will face come April 15th.
Thank you for your reply.
mtzttax
Can the Business still file the 1120S electronically even if the sole owner/officer/shareholder received a distribution? Why is TurboTax having the business fill out a 7203 when the IRS doesn't require the business to file it; correct me if I'm wrong but I thought only the shareholder on the personal 1040 is required to file the 7203.
The Form 7203 is filed by the individual S shareholder with their Federal Form 1040 return. The S corporation should provide a tax basis schedule that can be provided to the individual shareholder(s) for use in preparing the actual Form 7203. Turbotax Business now provides the necessary basis worksheet.
Now the most important question is will Turbotax be adding an electronic version of the Form 7203 in the individual tax program and will the IRS's system be programmed in time for it to be received in electronically through e-file? The IRS is now aware of this electronic filing issue at least with respect to farmers and fishermen. See https://www.irs.gov/newsroom/irs-update-regarding-recent-electronic-filing-challenges-in-connection-...
mtzttax
Please see the TurboTax FAQ here for form dates and availability.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
CLPinTax
New Member
15df4b319ad2
New Member
frankdigiu
Level 1
1kaylamwolf-gmai
New Member
rayoh
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.