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

[Jane_C]

Yes, but when 1 of those conditions exists, it would be nice if ProSeries supported it.   We have a few S-Corps that have had distributions and therefore MUST file 7203 this year.  It's been a requirement for 2 tax seasons now.  It doesn't function as it should ( data moves from K-1 to 7203) and that it's still not supported for e-filing.

[msmith7305]

Jane - The 7203 is filed by the shareholder NOT the S Corp. 

[stevied]

yeah, i noticed that too...didn't bring the ord. income from k1 to 7203...............its a work-a-round.....

[LeChuz]

Looks like ProSeries is still not supporting Form 7203 in the S-corporation program. 

The answer in this Q&A flow from an Intuit employee says to prepare separately and attach before eFiling. 

Intuit: yes we understand that the IRS doesn't say that it has to be attached to the F1120S filing. However, every other software system and CPA is preparing the form as part of the F1120S. So our clients and their preparers all expect this form. It is rather lame of ProSeries to not allow this form to be part of the basic package!

[IRonMaN]

"However, every other software system and CPA is preparing the form as part of the F1120S."

I'm not - it goes with the 1040, not the 1120S.

[abctax55]

From the IRS:

1. Purpose: S corporation shareholders use this form to understand the limitations related to their share of deductions, credits, and other items associated with the S corporation.
2. Filing Requirement: While S corporations themselves are not required to file Form 7203, individual s...².

(emphasis by me)

[Frustrated-in-IL]

"However, every other software system and CPA is preparing the form as part of the F1120S."

I am unaware of ANY CPA preparing the form as part of the 1120S.  Further, I have NEVER received this form as part of a 1120S K-1 given to me by a client, whether that K-1 was prepared with an Intuit product or not..  It is the client's responsibility to provide me the information necessary to prepare this form to attach to Form 1040. 

[steve5]

Seriously?  Well you can put me as your first CPA who always prepares the 7203 AND provides it with the K-1 for any clients I don't also prepare their 1040s (which isn't many).

[IRonMaN]

Yeah, seriously.  Basis schedules are typically provided but I have never seen the 7203 attached either.

[Jon-L]

Form 7203 must be attached as pdf to the 1040 per  ProSeries 2023 instructions :

1) when trying to attach a pdf of the form to the return it is not on the pull down "type" list ?

2) if I print a pdf copy of the client's return there is a complete Form 7203 as part of the return so why must it be attached as a pdf - which makes me thing that is why it's not on the pull down "type" list?

Is ProSeries aware of this problem ?

[Frustrated-in-IL]

I would suggest calling customer service.  If someone here says they are aware of it, you may be waiting a long time for a fix which isn't coming.

Since this should be as simple as "it isn't on the pulldown", they should be able to quickly verify that without having you reboot your computer, uninstall and re-install the program, or any other silliness they usually suggest.

Still going to be at least 30 minutes lost on the phone with them.

[Jon-L]

I did call and got the usual "run 'repair updates' ".

It may because the program still says the K-1 input sheet is not final yet?  But if the Form appears on the 1040 pdf return as a schedule (nice and complete) I don't know why it would need to be attached also. 

[Jon-L]

I wonder if maybe not preparing the 7203 in the software would work even though there is a small loss on the K-1.  Maybe Intuit will send & IRS will accept without the 7203?

[jhowellcpa]

Hi all - I bit the bullet after the debacle that was ProSeries tax season of 2023 and switched over to UltraTax. 

More expensive but worth every penny. 

I was a 20-year ProSeries customer and did not realize what a substandard product I had been using all these years...

Anyway, enjoy your tax season!

[Jon-L]

What is the price and what was the learning curve time 

[Frustrated-in-IL]

You can attach the 7203 even if it is not in pulldown.  Just use “other” and identify it in the explanation area.  

[Jon53]

I'll try that

[stevied]

who's this guy from Ultra Tax?

and why do we care?

[jhowellcpa]

Hey Brother, 

I'm just a fellow traveler who was in your shoes last year at this time.

Evidently I am still on this thread after commenting last year and have been seeing all the wailing and gnashing of teeth this year.

Just trying to share the light that there is a better alternative out there. 

Peace!

[PegE]

That's what I am doing, attach 7203 pdf as Other attachment to 1040.

Just noticed form 7206 listed in the drop down for attachment?

Is that required for 2023? Maybe should be 7203?

[Jon53]

ProSeries appears to have fixed this.  I was able to file a return with Form 7203 and did not have to attach it as a pdf file 02/21/24

[stevied]

me too,   what's all the fuss?

[Jane_C]

But that means YOU are spending critical time, manually completing a form that the software could/should do for you.    This is expensive software, it should populate all federal forms.   Especially since this issue was brought up last tax season and still isn't resolved.