Thank you George for the reply. There has been a very recent IRS update to the filing requirements for 8985 and 8986. I doubt Lacerte will get the software updated so i will have to file by fax under the old guidelines and hope they get processed.
see https://www.irs.gov/pub/irs-pdf/i8985.pdf
It says the following:
Note: The form, instructions, or publication you are looking for
begins after this coversheet.
Please review the updated information below.
These updates include the new electronic filing requirements for
Forms 8985 and 8986, and an update on how positive and negative
adjustments and Section 199A amounts should be reported.
Page 2 of the Instructions for Form 8985 (Dec. 2019)
On page 2 under Where to Submit Form 8985, the instructions for the entire section should be replaced with the following.
Audited Partnerships and Pass-Through Partners of Audited Partnerships.
Section 6241(10) gives the IRS authority to require electronic submission of
anything required to be filed or submitted under section 6226(a). Audited BBA
Partnerships and their pass-through partners are required to submit Forms 8985
and 8986 electronically. From the BBA website IRS.gov/BBAPartnerships search
for “Electronic Submission of Forms by Audited BBA Partnerships and their
Pass-through Partners” for steps required to submit electronically.
AAR Partnerships. AAR partnerships that are electing to push out adjustments
to their partners or have adjustments that do not result in an imputed
underpayment, must include Form 8985 with their AAR along with Forms 8986.
The Forms 8985 and 8986 must be filed with, and in the same manner as, the
AAR.
I will put in a call to Tech Support Monday.
If you hear of an update to the 2020 software, please let me know.
Cheers!
