Yes, Another 7203 Post: How to Handle Returns Requiring Form 7203 ?

[Frustrated-in-IL]

My understanding is Form 7203 needs to be attached to the shareholder's return.  While there may be exceptions, this means in almost all cases it would be attached to Form 1040.

With no one knowing when this tax season, if ever, Form 7203 might be released by ProSeries, what is the appropriate way to include a manually prepared Form 7203 with the 1040 tax return?

Specifically, does anyone know if IRS will accept a required form as a pdf attached to the 1040 return?  Or are we forced to print out the ProSeries return, insert the manually prepared Form(s) 7203 to the 1040 return, and mail it in?  Obviously, mailing the return in is not an ideal option given the state of the IRS.

I am very interested in knowing how you are going to handle this and if you are going to mail the 1040 return in, how you are going to explain this to your clients.  In my case, while the percentage of clients this will affect are small, their returns are usually more complicated and detailed and represent a much greater percentage of my billings.  I would very much like to keep these clients happy.

Many of us have vented here about the poor level of customer service.  It appears to me that communication is just as bad.  Why is it so difficult to get a straight answer from ProSeries as to the status of this form?

[TaxGuyBill]

If you can't wait to for if/when Intuit will add it, I would attach it as a PDF.

[michele]

I was told by support Pro Series would not get the 7203 . I  use Lacerte and we are not getting it either.

I called NATP to see if anyone had heard if a pdf would work for the IRS but no answer yet.

[frank1]

The problem is we should not have to manually prepare the form.  Proseries has known the form is coming.  You would have thought they would have been a bit proactive based on the irs draft and been in a position to tweek it once IRS finalized the form.

And if the programmers are not competent enough to have the form ready in a timely manner, you would hope they would provide some guidance re: alternatives that IRS would accept.  We have always attached a pdf of the basis worksheet (from the S-corp module) to the 1040.  It would be nice to know if that would be acceptable to IRS for this first year.

[ljr]

Did everyone see Proseries alert? They are currently say 3/31 for the form and they suggest manually filling out the 7203 and attach as a generic pdf if the return needs to go before then.

[steve5]

I just noticed today that Form 7203 is in Proseries Professional.  I was working on a K-1 and saw the link to the form in Part II of the K-1 worksheet.

It appears you have to manually input all of the data from the K-1 unless I am doing something wrong.

[Remle]

I am having the same issue. I prepared manually from T/P basis info and current year K-1.

Ran diagnostics. It says the 7203 can not be e-filed. It must be attached as a pdf.

Not much better than we were before with this issue. Maybe being able to e-file 7203 will be next fix?

[msmith7305]

I do not see the Form 7203. How exactly did you get to it?

[Remle]

Do F6 forms search for 7203 and select. once on the form click link to K-1

[msmith7305]

Thanks

[Remle]

Working on new 7203 form with 2 K-1s, husband and wife. The 7203 worksheet shows TP name and SS on both forms 7203 even though 2nd one is linked to the spouse's K-1 input sheet. Maybe there needs to be a checkbox to show this is spouse's 7203? I can not figure out how to print the 7203 pdf for wife's basis. Any thoughts? Thanks!

[ljr]

I just did one and it was unbelievable to have to manually input stuff that could carry over from the k-1. I did not get an error message to pdf the 7203 to the return though. My error check came back all green. So will it efile or not? 

[IntuitGabi]

Updated article on How to complete Form 7203 in ProSeries

[josephfolsomcpa]

Will form 7203 be able to be efiled for the 2021 tax year without having to attach it as a .pdf?  If so when will the e-file capability be ready?

[IntuitGabi]

@josephfolsomcpa I can't speak for next years product but I'll keep it in mind as we get more information next season. It's common for brand new forms to be included as attachments. 

In the meantime: Some new forms may need to be included as PDF attachments

How do I attach PDF files to federal or state electronic filing?

[josephfolsomcpa]

Is the whole "have to attach forms as .pdf" just a limitation of Proseries or is the IRS actually not accepting those particular forms yet in an "efiled" format?

[TaxGuyBill]

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@josephfolsomcpa wrote:

Is the whole "have to attach forms as .pdf" just a limitation of Proseries or is the IRS actually not accepting those particular forms yet in an "efiled" format?

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For these new forms, I know that at least some of them (maybe all of them) are due to IRS limitations.

However, ProSeries has the limitation of need to jump through hoops to attach it - you need to print the page to a PDF, then go through the steps to attach it.  Other programs just have one-click button to attach such things.

[IntuitGabi]

Attaching forms as PDFs is common for new forms. This is because each form & it's calculations and capabilities have to digitally align and agree with all the variables the IRS can receive. It's called the "schema". 

[Leetpurple]

I don't see Part II of the K-1 Worksheet?