Finding a warning that ProSeries has detected that the amounts calculated in the return have changed since e-filed. The only change is the tax. What's happening here?

[cbarnes]

Multiple returns are showing changes to the tax calculation.  There are no changes other than the tax calculation has changed.  Looks like it's happening a lot with clients who had capital gains?  Was ProSeries calculating the tax wrong before?  And this was corrected with an update?

[IRonMaN · Accepted solution]

The IRS was calculating the tax wrong.  There was either an alert or an e-mail sent out about the issue awhile back.  Maybe you were one of the chosen ones and had a bunch of returns affected by it.

[cbarnes]

Any chance you have a link to information about this alert/email?

[Just-Lisa-Now-]

I know I saw something about it somewhere...I'm not seeing it in the list of program alerts that show up as a yellow banner though.

Are you discovering this by opening a file and getting that pop-up that says "things have changed"?   or is there query that will pull up all files with a potential change?

[IRonMaN]

When all else fails, you can get it from the horse's mouth:
https://www.irs.gov/forms-pubs/error-in-tax-calculation-in-schedule-d-tax-worksheet-form-1040

[abctax55]

:horse: :open_mouth:

[Just-Lisa-Now-]

sooooo...was the error in the IRS favor and they will be sending out bills? or vice-versa?

[abctax55]

That's the rumor....I'm going to try to isolate my clients potentially impacted & notify them in advance.  

[cbarnes]

I've found some in the taxpayers favor and I've found some where the taxpayer owes more.

[skrampel]

I just found a client that overpaid by almost $3,000!!!!!

[Just-Lisa-Now-]

@skrampel  and the only change to the return is the amount of tax?  all the other figures are the same?

[dd4vols]

Opened a client this a.m. to send them a .pdf copy.... and got the "changes" pop-up. They had sold their business and were involved with the 28% tax situation. Gonna get a refund of about $600, but my understanding is that the IRS is reviewing applicable  returns, and we will not have to do 1040X's  to  get the refund.

[abctax55]

It's a Schedule D computation issue, mainly (exclusively?) impacting returns with a 28% tax in the mix.   I've had one (so far) impacted, for a whopping $ 27.  I first thought it was a transposition error

[poolcleaner]

There was a change in the calculations on Form 2210 when they changed percentages.  If you can find the alert, it will let you know which of your clients were affected by this.

[Just-Lisa-Now-]

Ive had a few clients call after receiving small refund checks they didn't expect...they appear to be from this 2210 % change mid-season, still haven't seen any of the explanation letters though.

[abctax55]

That wouldn't impact the *tax*, but would change what was owed/refund.  We need the OP to return & clarify.

[cbarnes]

The actual tax is changing.  Appears to be related to this: https://www.irs.gov/forms-pubs/error-in-tax-calculation-in-schedule-d-tax-worksheet-form-1040

[cbarnes]

I've tried to find the ProSeries Alert by clicking on Alerts on the toolbar, and I don't see any alerts concerning this issue.

[IRonMaN]

It could have been by way of an e-mail or it could have even been an alert on the main page of this forum.  Intuit's strong point has never been communications.

[Just-Lisa-Now-]

I think I saw it in my Facebook newsfeed from Spidell or one of the other tax related sites I follow.

[msmith7305]

Can anyone provide a link that shows ProSeries even updated the calculation after IRS found the error? I would think at least one of my clients would have been affected but, so far, I have not found one. There is no Query for this? We have to open up every single client file with Cap Gains to find this?

[Just-Lisa-Now-]

posted above  "It's a Schedule D computation issue, mainly (exclusively?) impacting returns with a 28% tax in the mix"

Look at some of your clients with higher incomes.  My clients are mostly middle income people, I only have a handful with income in this bracket.

[msmith7305]

I understand it was an IRS issue. What I am trying to find is evidence from ProSeries that they corrected it. I have printed out the 1040 Read Me notes and I DO NOT find any mention at all that this issue was addressed with an update to our software.

[cbarnes]

It was certainly updated as I'm finding unexpected tax changes when I open certain clients.  What I don't see is any information/alert about the update from ProSeries.

[cbarnes]

If you click on "Analyzer" on the toolbar, choose Form 1040, there's an option to query "Return Results Changed".

[msmith7305]

Aha! Never saw that. Thanks!

[poolcleaner]

https://www.journalofaccountancy.com/news/2019/may/irs-corrects-error-schedule-d-tax-calculation-wor...