deestax
Level 2

I have a client that "was told" that they could take a distribution from their retirement fund and spread it over 3 years without the early distribution fees because of the Covid-Related Disaster.  I processed their 2020, 2021 returns and checked the boxes for those and it did not apply the early penalty.  This is the last year and ProSeries is giving me error code when I check the same boxes I have in the past two years.

They are not very happy because they "were told" that they wouldn't be penalized for it.  Yes, I know, they were not "told" by a tax professional, but by the investment company.

Can someone suggest what I can do?  Will the return go through if I override it?  I would love to give them the correct reason "why" when they ask me.

TIA

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