Why won't Pro Series support Form 7203 for S-corps.?

[Bill M]

This form is required if shareholders are claiming a loss from the S-corp. Received a non-dividend distribution from an S-corp., Disposed of Stock in an S-corp. or received a loan repayment form an S-corp.

This is a necessary form all subscribers need to be aware of this new form!

[sjrcpa]

Do you know for sure that they won't?

[IRonMaN]

Maybe another one of those “ready March 17th” forms

[Bill M]

They say on the website they won’t. 

[TaxGuyBill]

Could you please point out where it says that?

[BobKamman]

If you've been doing it all along like you're supposed to, without software help, nothing much has changed.  Just have to show your work and file it with the return now. 

What's New
Form 7203 and its separate
instructions are developed to replace
the 3-part Worksheet for Figuring a
Shareholder’s Stock and Debt Basis
and its related instructions formerly
found in the Shareholder's
Instructions for Schedule K-1 (Form
1120-S).

[Bill M]

Tax guy bill just do a search for the form it will pop up they will not support it. The form will be required by s Corp shareholders who deduct losses from the s Corp and 3 other situations. Look at the instructions for the form.

[Bill M]

Bob you are absolutely right but the form is required by an s Corp shareholder who deducts losses from the s Corp and 3 other situations see instructions for the form. 

I do keep basis from inception and for new clients will always try to make sure their basis is correct. Sometimes can’t get all the information but I try. 

[Bill M]

Bob I think the 7203 will eventually be required to be filled by the s Corp in the future so the IRS can program their computers and correlate the form to the shareholders. It may take them some time but I think it will happen. 

it actually does help to calculate basis very neatly. I have my own form from 30 years ago that I obtained from a seminar that I use sometimes to check the computer and also on excel. Basis and AAA. As they can be different. 

[TaxGuyBill]

---

@Bill M wrote:

Tax guy bill just do a search for the form it will pop up they will not support it.

---

LOL.  I did a post about that, but forgot about it.

However, I was only pointing out the article that was supposedly "updated".  The article says it does not support Basis limitations, but that article was written years ago (before Form 7203).  Although they supposedly "updated" the article, it is common for those articles to not REALLY be updated.

So I am HOPING that article was wrong.

  @IntuitGabi had never responded to that post, so perhaps she or @IntuitBettyJo or @IntuitAngela_13  may be able to let us know if the required Form 7203 will be included in the software.

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/proseries-won-t-support...

[ihan · Accepted solution]

Latest Update: 

Form 7203 is now available in ProSeries.

Here's an article on How to complete Form 7203 in ProSeries

[edited]

[Bill M]

Excellent news Ihan!!! Thank you for the good news. 

[lweav]

Can we ask in what timeframe?

[TaxGuyBill]

---

@lweav wrote:

Can we ask in what timeframe?

---

There is a different form that has been in the software for years, and the IRS has already finalized that form, and Intuit says they won't have that form won't be ready until March 17.

So based on that, and the fact that 7203 is a new form and the IRS has not finalized it, I suspect Intuit may have Form 7203 ready around August.

[SPA-CPA]

The form 7203 if finalized by the IRS and you can obtain the form on their website, so there is no reason why ProSeries should not have this form available.

This is a must for 2021 and is not optional!

[IRonMaN]

And Intuit is feverishly working on it.  Well, they are probably working on it.  Well, they are going to work on it and get it out ---------------- at some date in the future.  Intuit doesn't really like to provided date estimates, because if it is late, they will upset people.  Instead, they like to keep folks in the dark and "surprise" them when things are ready.  On a scale of 1 to 10 for communication skills, Intuit checks in at about a minus 7.

[CDK]

Pls provide Form 7203 ASAP!  Thank you.

[steve5]

This form is required and needs to be in the software!

[Frustrated-in-IL]

This form is NOT listed under form info for S Corps or individuals:

https://myproconnect.intuit.com/releasedates

Some solid info would be greatly appreciated.  Saying Intuit plans to support it and it being under development is meaningless.  Will it be available for THIS tax season or not?  

To me, the issue is not "if you have been keeping the info all along, it isn't a problem".  I have been keeping the info all along and it IS a problem.  Do we need to have the "we need to get an extension for your 1040" conversation with our clients?  Or should we begin preparing the form manually?  Here SPECIFICALLY is the problem.  Will IRS accept the return electronically filed with a hand prepared form attached as a pdf OR do we need to mail the entire return in and hope IRS processes the return before next tax season or before the non-filing letters show up (which in some instances they apparently stopped sending)?  If anyone has an authoritative answer to that, I would appreciate hearing about it.  Given the problems IRS has, I really do not want to paper file any returns.

I would bet this form will be filed with more returns than many of the forms the program supports.  This really should be a top priority.

[steve5]

I totally agree with you "Frustrated" - 95% of smaller S - Corps take distributions or have losses, therefore the form is REQUIRED.  

[jacquemcm]

Any idea when the form will be available?  I have returns already holding for it.

[IRonMaN]

You need to wait awhile longer since they haven't provided a date.  If you are adventurous, you could try doing it manually and attach a pdf of the form to the return.

[johnm]

I hate when people mark these as solved.

"I am planning to fix the hole in my roof" does not solve the water gushing into my house.

I have to get my a$$ up there and fix it before it is solved.

[steviedcpa]

"we all get it.........well, all get it..........."

[IRonMaN]

The question was "why won't ProSeries support form 7203".

The post marked as solved was "ProSeries is planning to support Form 7203 and it is currently in development"

To me that kinda looks like Bill's question was answered.  Just because your question wasn't answered doesn't mean Bill's wasn't.  If you start your own post on the subject you can have the freedom to control whether your problem was or wasn't solved.  Hopefully that will provide the satisfaction you are looking for.

[dkh]

Here is an update from Intuit

Solved: Form 7203 - S Corporation Shareholder Stock and De... - Intuit Accountants Community

[BobKamman]

I had an 1120-S I wanted to get out the door so I filled out a 7203 using the fillable pdf on the IRS website.  After all, the instructions say that learning about the law and the form should take only 15 minutes.  

It took me somewhat longer than that to get past Line 1, which asks for the basis of the shareholder's stock.  To get the answer I wanted, I had to use the balance sheet stock basis plus retained earnings.  This might be wrong, but no one is going to look at it anyway and there's no penalty as long as the shareholder can still take the $2,000 loss since he has $2,500 in capital stock, $55,000 in retained earnings and $4,000 in loan to corporation.  It just matters which account gets reduced.  

[johnm]

Thank you! Extremely helpful!

[jhowellcpa]

When will this form be available in the ProSeries software?

It is unacceptable this form is not ready. Make this a priority so we can get returns out the door.

[IRonMaN]

They said March 31st ------------- but they also say you can prepare it manually and attach it as a pdf.  So those returns aren't going to be flying out the door for quite awhile 😱

[jhowellcpa]

Unbelievable...I do pay for this software, right?

[pcrubingercpa]

I agree...this form should be a no-brainer within the 1120S software since all the basis calculations are already there. I presume the 7203 would then go out to each shareholder with the K-1s, for the shareholder to complete and attach to his 1040. We need this form or will have to create from a downloaded 7203 and attach to each 1040 we file.

[IRonMaN]

The 7203 is a 1040 form, not an 1120S form.

[jhowellcpa]

Right...but the basis worksheet is already calculated in the 1120S software...so it would seem pretty straight forward to link the info already being calculated in the 1120S to the 1040 like they do with the K-1...

[The_AntiTax_Man]

We need to follow this thread.

[kfccpa]

Why is the Lacerte and ProConnect Discussions showing that the Form 7203 will be available the first week in March and the ProSeries availability is showing March 31st?  We are all Intuit products with similar programming.

[IRonMaN]

"We are all Intuit products with similar programming."

Not even close.

[Garymg]

We have farmer tax returns due March 1st and they will not electronically file because of the absence of Form 7203.  Please help now.

[dkh]

You can manually complete 7203, attach as pdf then efile

Solved: Form 7203 - S Corporation Shareholder Stock and De... - Intuit Accountants Community

[ShadyLady]

We use Lacerte but...

We had the same problem and did a work-around which wasn't really accurate. We took our basis information and attached it to the Form 7203. There was no desire to spend additional time creating a pdf copy of the form. Pretty frustrating to not have it available sooner! We at least got the 3/1 returns timely filed. If the client gets a letter requesting the Form 7203, we'll just print it off from the program and send it in then.

Here it is the afternoon of 3/1 and still no update with the form. We are actually holding two 3/1 returns because they have basis losses we would like to correctly report on the form. Wondering if it is actually being released today as stated.

[TaxGuyBill]

The stated expected release is 3/31, not today.  You have another month to wait (and at the rate Intuit is going, it very well could be much longer).  [Edit:, Oh, I missed that you said you use Lacerte].

I'm curious why you attached a generic Basis statement, rather than just filling out a PDF of 7203?

[RETaxAcctBrk]

Form 7203: 

So after a bit of digging, it appears 7203 is a 1040 form, NOT a 1120s form.  Per the IRS instructions for form 7203: "Who Must File  Form 7203 is filed by S corporation shareholders who;".  Apparently from that reference to Shareholders we need to understand it is a 1040 form.  Otherwise, not a single reference to this being a 1040 form.

And yes, I now see this form in my 1040 software.  It appears all the data from my Shareholder Basis worksheet in my SCorp is flowing into the form.  My Stock Basis figures at the start of the year don't agree, so I will have to figure out the right way to fix that (I know the SCorp is right after auditing). 

Ideally - this will help - just lost 3 hours of my life trying to figure out, with INUIT, why the 7203 was not showing up in my SCorp.  They said "it was not supported / right, it should show up but I can see it does not / the new release supports it reinstall the program", and that was after being escalated 2 levels.

It seems providing clarity in instructions is simply no longer a requirement......Ugh.  Or, they just want to try out the new penalties on Tax preparers...

[abctax55]

"....The 7203 is a 1040 form, not an 1120S form."

Jeff's post from four weeks ago....

[steve5]

Consider yourself lucky that it is in your software.  I don't see it anywhere in Proseries Professional....

[kfccpa]

Intuit updated the ProSeries date to 3/24/22.  Lacerte and Proconnect have been implemented.

[lesliek]

Shareholder Basis always has and will continuously be tracked at the shareholder level. S-corps are not partnerships. 7203 is required in certain circumstances for 1040, not the 1120-S.

[nls2022]

The form is in Proconnect software but not in Proseries.  There is no reason it is not available yet in Proseries except they are dragging their feet and causing problems for tax preparers.  I can only think that the are trying to get people to upgrade to Proconnect.  I think I would rather switch to a different company since they cannot support their Proseries customers.

[steve5]

The Form 7203 is in the Proseries Professional software.  It doesn't carry any of the information from the K-1, but at least it is there.

[IRonMaN]

I must have missed when we shifted gears from 7203 to PTE. 

[Jane_C]

This process doesn't make sense.  You don't generate the 7203 FIRST and THEN do the K-1.  You complete the K-1 and then based on information from the K-1, the 7203 is generated.  Actually, if you ignore the instructions above and complete the K-1 first, ProSeries DOES populate most of the 7203 except for the items they already note in the instructions above, BUT they miss one important number.  They don't bring 3a. ORDINARY BUSINESS INCOME from the K-1.  

I hope the programming team 1) Talks to some practicing CPA's to remap the fields, 2) Does an upgrade so 7203 automatically sends with an e-filing by Jan 2024.