LACERTE IND RETURN DOES NOT REQUIRE ADDITIONAL STATE FOR 2020

[pat]

Should I delete the state under Client Info? Will I lose any Michigan carryovers associated with the K-1. The 2019 General Info includes Michigan carryovers for the Basis Losses - State Amounts.

He received a MI K-1 for 2020 but it has no income on it, just reporting the tax basis capital account. No other activity in the LLC. There may be activity/income in future years.

Is there a way to see the effect of this without having to REP the Michigan forms? I don't want to incur the REP fee for a return I will not be filing.

TIA

[PKCPAMST]

1. Make a copy of the client file.

2. In the copy made in Step 1, change the client's Social Security number to 999-99-9999.

3. Obtain a REP approval. Because of all 9s above, you will be not charged a fee for REP.

This way, you can do the what-if analysis.

[pat]

Thanks for that  but I made a copy and removed the MI return before going into Forms, instead. The MI c/o info is removed. Not sure how to retain it if this year, no MI return is required. There may be MI information next year..

The only way I can see to retain that info is to REP the form and just not file. I just don't want to be charged for MI if filing is not required.

Any other suggestions?

[pat]

I finally called Lacerte with this question and we are expected to pay the REP fee even though the client is not required to file that state's return this year. The fee covers the storage of the carryforward information from year to year. So, even if there is no MI income for several years the fee has to be charged to maintain the information. 

[PKCPAMST]

pat,

 Thanks for the update.

PK