In light of the alert issued today by the IRS and lacerte, is there a way to identify in lacerte which clients this may affect?  We have grouped by those that filed a sch D, but want to see if we could get more specific (those that have items on line 18-20) without going through each return.   Would like to give clients a heads up they may be receiving IRS correspondence and a potential change in tax liability.

The IRS has informed us that the Schedule D Tax Worksheet for Forms 1040 and 1041 were not properly taxing certain capital gains at the new lower 2018 tax rates, but instead the worksheet was taxing them at their maximum rate of 25% or 28%. Forms 1040, 1040-NR, 1041, and 990-T use these worksheets to calculate regular tax in certain instances. The IRS has released newer versions of these worksheets which should be released in Lacerte version 39.0516.

The IRS will review returns filed prior to May 16 to determine any needed corrections. These taxpayers do not need to file an amended return, call the IRS or take any other action at this time.