Issues with Form 8941? Have you?

[Richcpaman]

I have been receiving a number of notices (LTR 12C's) for the IRS.

Each of them are the same scenario: 1040 client, who owns an S-corp, and claimed the Heath Care Tax Credit on a pass-through basis on Form 8941, each return was e-filed and passed all ATX checks.

THe IRS asks why line 1 and 2 are not filed out. (Becasue they are on the 8941 filed on the S-Corp return!)

Was this something that the IRS has missed? I missed? Or did ATX miss?

Rich

[rfassett]

Rich, at the risk of angering the notices gods, I have to say that i have not yet seen any of those notices. In fact, I am thinking the only 2012 notice I have received so far was the mis-calculation of taxable social security benefits that slipped through when that was an issue in the software.

[grmy2h]

I received one yesterday for my personal taxes.

[Richcpaman]

So...

I wanted to review how I input this, and maybe that might explain the reason why...

I started at the form 3800. As most of these clients claimed the credit in 2011 as well.

You could input all the information on the Form 3800 in the "input" tab, and the credit carries to the 1040.

THe 8941 is attached to the return already, but nothing, it seems gets carried to that form.

So, the "check return" and "E-file Error" check do not pick up anything wrong.

You have to go to the Form 8941 and enter the info on line #15 for the credit amount.

Then you go back to 3800 and enter into the input section.

So that generates the error in processing at the IRS and the letters I have been getting, becasue I did not put the number on Line #15.

Sweet.

Rich

[grmy2h]

I have an amount on line 15 and 16 and still got the letter.

Per the IRS person I spoke with, "the error is that the 8941 is attached, per reg...????? 8941 is not required when filing with a K-1."

So I have replied to the letter advising them to tear up the 8941 and pretend they never saw it.

[mrichman333]

"So I have replied to the letter advising them to tear up the 8941 and pretend they never saw it."

ROFLOL!!!!!!

[Lion EA]

Form 8941 - Credit Exclusively from a Passthrough Entity - Update

Dear ProSystem fx Customer:

In an earlier e-fxNews, we communicated an issue with Form 8941, Credit for Small Employer Health Insurance Premiums, in the Individual tax system. The IRS has issued notices for returns where a value was on Form 8941, Line 15, but insufficient supporting details were present.

We have worked with the IRS to mitigate future notices on this issue. In the case where Form 8941 is incomplete and the EIN of the passthrough entity is on Form 3800, Line 4h, Column b, a notice will not be sent.

We apologize for any inconvenience this issue caused.

Find answers to your CCH questions in our Knowledge Base at http://support.cch.com/answers/.

Sincerely,

CCH, a part of Wolters Kluwer

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