Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

IRS Notices that adjust overpayments from one year to another

Level 1

How do you handle clients where the IRS or state adjusts the overpayment applied towards the next year before you roll the return.

Example: when the return was prepared, the over payment applied towards next year was 1,000. IRS sends a notice and adjusts it to 850. 

How do handle this in Lacerte so the correct carry forward is rolled forward?

0 Cheers
1 Comment 1
Level 15

Change the prior year return to match the IRS notice. Keep "as filed" and "as adjusted" copies for your file.

Then pro forma.