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FORM 8978

fjcomito
Level 1

Any idea where the information from Form 8978 goes on the tax return?

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7 Comments 7
jeffrey1
Level 2

 

IF ITS A REDUCTION OF TAX, IT GOES ON SCHEDULE 3, LINE 6C, BUT I DON'T KNOW HOW TO GET IT THERE......

 

 

CNLuntaxr
Level 2

Has anyone figured out how to input this yet?

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George4Tacks
Level 15

While in the input or detail screen use Ctrl + F to start a search. Find an input field - Search for 8978 > Click on the "Partner's audit ...." and VOILA! There it is!


Here's wishing you many Happy Returns
naynay0328
Level 1

yea! - this has stumped us - we have 4  to complete - needed this answer -so a negative will be a positive on the 1040 correct

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CNLuntaxr
Level 2

First you manually prepare Form 8978, Lacerte doesn't do that. Looks like when the adjustment favors the taxpayer inputting a negative number in Screen 45.3 causes it to carry to Schedule 3 Line 6.  If you owe additional tax,  enter a positive number. Lacerte adds this to the total tax and increases Form 1040 Line 16.  Either way you get a diagnostic saying it can't be efiled, even after attaching the Form 8978.

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George4Tacks
Level 15
Press F1 at the input and you should get:
Partner's audit liability under section 6226 (Form 8978)
Other Taxes Screen 45; Code 117


Enter the amount of partner’s audit liability under section 6226, from Form 8978, line 14. A positive amount will carry to Form 1040, as an other tax. A negative amount will carry to Schedule 3, as an other credit.

Here's wishing you many Happy Returns
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George4Tacks
Level 15

Entering a negative number gives diagnostic 53383, a positive gives 53567 - both give the same result. You must paper file.

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One more reason to get the partnership to accept the audit results at the partnership level. 


Here's wishing you many Happy Returns
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