CRITICAL ALERT Regarding QBI and Amortization for Partnerships, SCorporations & QBI and 179 Limited
We discovered a programming issue in ProSeries for Partnership and S Corporation returns that may have resulted in an incorrect QBI amount.
Activities that have QBI, Amortization and Section 179, the Section 179 deduction was not included in QBI. This caused an overstatement of QBI on the entity return which was passed on to the K-1 partner/shareholder. This issue may have caused the partner/shareholder to understate their taxable income on the 1040 return, resulting in a tax underpayment.
Certain conditions can cause an incorrect QBI amount reported on partner/shareholder K-1 when Section 179 is limited. This caused the partner/shareholder K-1 to understate QBI amount and overstate the carryover to the 2019 return. This issue may have caused the partner/shareholder to overstate taxable income on the 1040 return, resulting in an overpayment of tax.
In both scenarios, the affected 2018 Partnership and S Corporation returns will need to be amended and filed, and new K-1s issued/distributed with corrected QBI. Amended K-1 recipients should file amended 2018 Individual returns and include payment for any additional balance due.
The list of your impacted return submission IDs can be accessed by entering your Customer Account Number here: Impacted Clients Lookup
hey just trying to help make you feel better about not getting an alert email, this problem was pointed out to Pro Series at near the beginning of filing season, they finally fixed it around 3-7-19, so returns done prior to that could have issues if any of these things applied - best wishes, i will just take care of my clients and quit commenting to be helpful....
If it is a scammer, they sure went through a lot of work getting the correct product manager name and a lot of details as to the problem. But in any case, in this day and age, who would want to click on the link anyway?
Wile E's Tax Prep, Emergency Brain Surgery, and Used Tire Shop - Nobody does it cheaper! Call 8675309 for an appointment today - or tomorrow, we aren't that busy.
Just got off the phone with Proseries support and the agent said the email is legit. She said they are not adding a query within the program to produce this info and clicking the link is the only way to get it.
If Intuit / Proseries put in the yellow alert bar then people would know there was a problem and Intuit / Proseries does not want that information to be known - even where there are problems. They hid it from everyone. Don't even include it in there help files so you can know.
I see the alert today when I was going to prepare an S corp return. i have no clue if i received an email on 7/10. we were closed for 2 weeks including that date, so I may have accidentally deleted it when zipping through the several hundred emails i received in those 2 weeks (of which most were junk to me). Now I have 16 returns listed as that may be effected. I am a one CPA operation, I don't have time on September 4 with the deadline 11 days away to check all these and figure out what is wrong. Pro Series should pay for any penalties and interest, but of course they won't. This is my 13th and probably final year of using this software. Too many issues the last two years, this is just icing on the cake of my unhappiness with Pro Series
OK I called pro series and they explained that all 16 returns may not be effected. just that those are the max it could be. so my office manager is going through the partial submission IDs to see which returns it would be. then i match the file (which would already have been changed with the update to the return that was filed. if no change on the QBI form, then nothing to amend. So I may still want to torch my software, but for now I hold off