When will the IRS Form 7203 for software become available? Without it, I cannot file either my business or personal taxes.

[Y-KNOT]

Thanks for all the information on form 7203.

I've had our S corp since 2009 and have taken distributions as well as repaid loans from shareholders.  I have not had to calculate basis.  Can someone point me to a good source to determine current basis? ... I need to build it from the beginning until now.

[PatriciaV]

@Y-KNOT

The IRS has provided a worksheet help you determine your adjusted basis here: S Corporation Stock and Debt Basis

[mtzttax]

In addition to obtaining the basis worksheet (which is essentially the same as the Form 7203), gather up your prior Schedule 1120S K-1's. The K-1's won't show your initial and additional capital contributions but you should have those through your stock records or annual corporate reports if you have to file those each year in your state. The K-1's will show you all the basis additions and subtractions (including non-deductible ones) and distributions. Of course, this assumes the K-1's were properly prepared each year.

As to your shareholder debt basis/loans, this should be easier to complete since loans don't have the permanency of stock basis. I think you could concentrate on loans that were just outstanding as of the start of the year. For old time tax preparers this task will bring back memories of doing basis studies for mutual funds with years of reinvested dividends before the brokerage firms provided this data.

mtzttax

[Y-KNOT]

Thank you @PatriciaV and @mtzttax.  I will work through this.  My K-1's were generated using Intuit's ProSeries Tax software ... so I hope they are all correct 🙂

[lushine]

I've found a workaround to the missing Form 7203 attachment when e-filing. E-file Federal first, then e-file state second. 

[mtzttax]

Something doesn't make sense here. Are you saying that the Form 7203 is not available in Turbotax's personal tax software even if you do a search for "Form 7203" when in forms mode? The actual Form 7203 is only available in the personal/individual tax software. For anyone using Turbotax Business (for partnerships, S corps, etc.) the software will provide a worksheet for the Form 7203, but the actual form is only filed by individuals.

As I mentioned in a previous post, if you are able to locate the Form 7203 in the personal tax software it should appear in the list of forms to be transmitted via e-file as long as you have completed it manually. However, it will not appear in any chronological order. Please note that Turbotax does not transfer over Schedule K-1 data to the Form 7203 as I far as I can tell. Even if they did they would not be able to gather all the information necessary for its proper preparation since some numbers for the Form 7203 have to be obtained from the worksheet that the S corp. or partnership must provide to the individual for completion of the Form 7203. 

I should point out that I have not yet submitted an electronic return so my comments are limited to what I'm seeing in the program immediately before hitting the "transmit" button.

[lushine]

I personally got this error: "Can't e-file. Unable to locate attachment at /attachment/Form7203.pdf".

Form 7203 was clearly shown in forms mode and I can even export it, but for some reason TurboTax could not attach it when transmitting Federal and State simultaneously. So I figured I e-file Federal and State separately and it worked.

[mtzttax]

That's interesting. I will soon learn whether I will have the same problem. The reference to the 7203.pdf attachment sounds like Turbotax is handling the Form 7203 similar to the handling of the Form 8453-S for electronic filing of the S corporate return. For the S return you print, sign and scan the Form 8453 into the business tax software. If Turbotax is doing something similar for the Form 7203 it may indicate that either Turbotax or the IRS or both cannot send and receive the Form 7203 in purely electronic format. This doesn't make any sense to me since there's no signature requirement on the Form 7203 while there is on the 8453.

Thank you for sharing your workaround.

[Upstateelite]

This is ridiculous - I am amending a return - and I keep getting the same error for 7203.pdf will not attach.

TurboTax needs to fix this.

All these work arounds, do not work or tricks.  I did get my state one to go through but not federal.  This stuff with negative numbers/or upload state first, none of that matters.  It worked the first time with a regular e-file

Obviously this is a software fix, and there should be enough messages that turbotax would fix this.

Nobody seems to know the real answer because it is something in the software - even the IRS website reports this error with fisherman or something - so turbotax should be aware of it-  Look for the error yourself on irs website with fisherman... they had same issue.   So why have they not fixed it?

[fmorelli]

Excellent insight @mtzttax ... makes perfect sense, and in fact I cannot file because 7203 shows no basis (aside from other errors TT makes in filling out the form). But in TT Online I can only seem to delete the forms. I have found no way to actually get to Form 7023 and manually correct the form. Doing a search, which normally brings up a form, does not bring up a link. Tool Center only allows selection and deleting of forms. How does one manually edit Form 7023 in TT online?

[tagteam]

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@fmorelli wrote:

How does one manually edit Form 7023 in TT online?

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You cannot. If you want to do so, you would need to switch to a desktop version of TurboTax.

[fmorelli]

@tagteam afraid you were going to say that lol. At this point I will print manually, pull the IRS 7023 pdf from IRS, and manually fill that out. This form has wreaked havoc on TT. Thanks for the reply.

[srbtrb]

@lushine Thank you, thank you , thank you! I was at a total loss on what to do and your recommendation of e-filing Federal first, then going back and e-filing state worked. You saved me so much time and frustration. Thank you!

[Lvanann]

Turbotax is not allowing me to enter my amounts on their pre-filled in boxes for the 7203 form.  HELP!  Where is TurboTax getting these figures?  I did not enter anything from this years S-1.