Can anyone guide me towards what type of documentation I will be required to retain for these credits. I have searched far and wide and can’t seem to find and guidance. I know I will need to see covid test or something from school or work but I’m curious as to who’s on the hook here. I don’t wanna be caught unprepared since these are some hefty refundable credits.
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I don't understand this part: "I know I will need to see covid test or something from school or work"
You seem to be asking about due diligence for your clients? The IRS instructions for Sched SE are where you will fill in the info. SE doesn't come from "school or work."
This link includes Self-employed FAQ: https://www.irs.gov/newsroom/special-issues-for-employees
Create a questionnaire for the taxpayers to fill out and sign.
It should list the qualifying reasons, the qualifying dates, and ask how many days they could perform their self employment due to those reasons (see the Instructions for lines 1 & 2, and also line 25 of Form 7202).
and Intuit told us the other day that the 7202 wont be able to be Efiled per IRS, so tell your client to be prepared for a long paper filed wait time.
This year is going to be a mess.
@Just-Lisa-Now- Are you saying we won't be able to attach form 7202 as a pdf.
@Just-Lisa-Now- wrote:and Intuit told us the other day that the 7202 wont be able to be Efiled per IRS, so tell your client to be prepared for a long paper filed wait time.
That makes no sense. Where did Intuit say that?
That would mean EVERY self employed person that is affected would need to paper file? Again, that doesn't make any sense why the IRS would do that.
Wow, I just saw your post from earlier this week. I hope that Intuit is wrong.
It's back to my question in that post - is it not allowed to be e-filed or is that an Intuit interpretation of IRS gibberish?
I'm thinking you won't be able to attach it as a pdf because the form is going to be in the client file and that is going to block e-filing. How are you going to get it to flow correctly without the form in the file?
@IRonMaN If we cannot efile because of form 7202, I am just going to put the credit on schedule 3 line 12b with an override, and not fill out form 7202 in the program, but fill it out by hand and attach it as a pdf. If you look at the draft instructions, it says to attach to return. Will disable error check, and efile
I was confused, thinking this related to the SS deferral option. I forgot about these other two provisions.
"what type of documentation I will be required to retain for these credits."
Nothing requires a covid-positive test. It's more of an impacted because of covid issues status. And the family leave relates only to son and daughter. You would need to prove the person qualifies as self-employed and has a situation that meets the requirement(s).
Sorry if my post was a little confusing.
Very good idea will probably add these questions to the questionnaire I already have for self employed returns.
I saw this also. I did advise the one client who has asked me that the wait time would be extended. Especially with them still working on that backlog of 7 million from last year. This tax season is gonna be a train wreck.
True I have not seen anything that says I am required to have anything. These credits don't seem to be covered under due diligence laws like CTC, EIC and AOTC. I just don't want to have issues later on since the credit amounts can possible be hefty.
The instructions are in draft right now:
https://www.irs.gov/pub/irs-dft/i7202--dft.pdf
It's only 3 pages. I recommend printing it out, highlighting what matters, and use it with your clients.
I got a response from Drake ... 🙂
Although Form 7202 or 8915E can not be directly e-filed, it CAN be attached as a PDF (and Drake automatically flows the numbers and prompts you to attach the PDF).
What ProSeries will do, I have no idea.
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