Hank:

The IRS is advising on their draft regulations and forms that Box L, Schedule K-1 will no longer tie to M2 and the balance sheet. They recognize and now expect that. In effect, you now have to maintain "tax capital accounts" separately from M2.

Since Lacerte always connected the numbers from M2 to flow to the balance sheet and Box L, they are working on the programing to "disconnect" those numbers in the program.

Additionally, the IRS advises a one time plug to beginning Box L, to covert old capital to the required "tax capital" account.

The IRS is considering a waiver for 2020 and Lacerte is working on the programming now.

Joe Handy