Once the form 7203 is available, will we be able to efile our personal return through Turbo Tax Home and Business?
@lmr57 wrote:
Once the form 7203 is available, will we be able to efile our personal return through Turbo Tax Home and Business?
The Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations is not used or supported in any of the personal TurboTax desktop editions, including Home & Business
The Form 7203 is not supported in the TurboTax Business edition.
I thought the form was going to be available in the program by March 31, 2022. If it is not supported, then does that mean that every individual using Turbo Tax Home and Business or other personal TT program with S-corporation distributions needing a Basis Statement (form 7203) can no longer efile their returns? That is a real problem if that is the case. What do TT experts suggest in this case because paper mailed forms will take forever to process. I purchased the program specifically for efiling.
@lmr57 Where did you see that the Form 7203 would be available in the Business Edition?
The form is not even listed in the available forms for an S Corp in the TurboTax Business Forms availability website - https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotaxbusiness_fed_windows_scorp.html
Additionally the form could never be used with a personal federal tax return Form 1040. Only the Schedule K-1 issued by the S Corp is entered on a personal tax return.
Form 7203 S corporation Shareholder Stock and Debt Basis Limitations is a new form for 2021 that needs to be included with form 1040 if an individual has schedule E attached with income from an S-Corporation and also received distributions.
Your response makes me wonder if you know what this form is.
I need to know when the form will be available for personal returns filed through Turbo Tax - specifically Home and Business and if the form will also be able to be efiled with the TT personal return. Can anyone answer that as I need this informaiton.
Form 7203 is used to figure potential limitations of a shareholder's share of an S corporation's deductions, credits, etc.
So does this mean that Turbo Tax will not allow e filing of the form 7203 that is required? That seems crazy to me that everyone that purchased any turbo tax personal software with S-corporation distributions or other items requiring form 7203 now, will not be able to e-file. Is that correct? No way am I mailing my return as too many are unprocessed and that is why I purchased turbo tax. Any suggestions
@lmr57 wrote:
So does this mean that Turbo Tax will not allow e filing of the form 7203 that is required?
Probably it does.
When the old basis statement needed to be prepared and filed, the return had to be printed and mailed.
This is so disappointing. I can not believe this is how intuit turbo tax handles this.
This is not limited to TurboTax, @lmr57. Users (professional preparers) are experiencing something similar with Intuit's professional software versions.
replying to my original question, or adding to it. To file my personal taxes, I need to enter K-1, but my accountant cannot provide me my K-1, until they can complete the Form 7203, which they cannot do until the IRS provides their software system with that form electronically. So, for me, I am just using TT for my personal income tax, and my accountant files my business income tax, but again, I cannot file my personal until I include the K-1 info, and that cannot be done until my accountant gets the 7203 form. I was viewing some snarky answers, so needed to clarify my original question. The form is available right now, but not in electronic/software form, and allegedly wont be until March 31st. Typical IRS, they knew about this last year, yet it takes them six months to figure it out, now we all have to file extensions because of their incompetence.
I know as I have been reading a number of posts on this form. I wonder if many are e-filing their returns and then waiting for the IRS to request the form 7203. Obviously having the form 7203 completed manually and just holding on to the form. It just seems like mailing the returns, especially now, is the worst possible answer.
I generally agree, but it is important to file a complete (and accurate) return in order to start the statute of limitations on assessments (three years in most instances).
I would not want to get into a situation where the IRS is arguing that they can audit me years later because I did not file one required form.
"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.
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
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.
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