form 5329? - coronavirus distribution

[DPTAX]

is anyone else having issues with form 5329? I was able to waive the extra 10% for coronavirus distributions on that form ( I think it was under other or line 12) and now I don't see it under other. To make matters worse now looking back at the clients I've sent through with that form it is no longer on their tax returns either and the 10% penalty was automatically added back.

Edited February 20, 2021 by jklcpa
added to title

[Lion EA]

Did you include Form 8915-E?

[DPTAX]

Yes spoke with support and now there’s a box to click on the 1099-R form and it also asked me for a 8915-E form on the last return I filed that needed the Covid exception. But originally the exception was on form 5329 under line 12 it said coronavirus distributions in their software and It removed the penalty when amount was entered there so they must have just changed it possibly right before the filing date of the 12th because we’ve been preparing returns since Jan. 22 and the box and form 8915-E were not there. I just wish they put a warning or something to say hey we moved this and now you have to do this or put draft on form 5329 since it obviously wasn’t correct because when they removed that line from 5329 it automatically added back the penalty and I didn’t catch it before I already transmitted some. so now I’ll have to do amendments for those clients.

[Chowdahead]

Came on here to ask about this as well.  This is horrible.  I too noticed the missing language related to Coronavirus on Line 12N of 5329.  When I went to check the Form Update Report I saw a change was made to 5329 but no exact information about what was changed. 

This is horrible.  I don't think I have any clients that hadn't been transmitted before this change was made.  I was about to transmit a return and noticed the client now had a tax due when the penalty was reinstated and that's how I caught it.    However, I'm wondering what is going to happen to those clients who I transmitted beginning Feb. 12 that had the old form.

This doesn't appear to have been handled in the best way.

[Randall]

I had one before the change.  He wanted to pay the tax in this year.  The old 5329 had a code for the coronavirus.  At that time, I didn't need to have 8915E.  It was sent and accepted.  Now with the change, that code is not in 5329 but with 8915E, you can click a box to have all the tax paid this year.  

[Chowdahead]

I had a similar client.  Better to get it over with and pay the income tax.  

Also, to my knowledge the 10% penalty has been waived for 2020, and is not deferred, which is big.