Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Qualified 100% Charitable Contributions line 11

Johnl777
Level 3

I entered 2020 qualified charitable deductions on Schedule A input sheet using type code C for 100% deduction, and return was computed and efiled correctly. Now IRS has sent client tax due notice, where they are treating all subject to 60% AGI limit.  Apparently ProSeries should have entered the amount of qualified deduction also on the "dotted line" next to line 11 for the same amount in order to make a valid "election", but didn't. Anyone else run into this, and if so how to reply to the IRS CP11 notice. Calling IRS may not be practical.  Think  an amended return?  Or just try to explain to notice  why we disagree. Only  option per notice is to call IRS.  Did ProSeries let us down on this? Thanks.

Labels (1)
11 Replies 11
PATAX
Level 11

I am not sure my friend, if it was an intuit or Pro Series issue one would think that others would have experienced this by now this late into the extended tax season but I haven't seen any other post like this so I don't know...

0 Cheers
TaxGuyBill
Level 15

I've seen this on other forums.  Yes, Intuit screwed up yet again and didn't do what is required.

I would reply to the IRS notice that it is a 100% charity, but your defective Intuit software did not include the required notation.  In that response, you can ask if they want an amended return, but I suspect that they will just fix it via that response.

The IRS is rather slow at responding, so expect it to take a long time to resolve.

 

PATAX
Level 11

Thanks for the information Bill.... Now I will know what to say if a client gets a notice and calls... What a joke...

DanCoc
Level 2

Hi John, I just received an IRS letter for a client that is also having their charitable contribution deduction "corrected".  Appears to be the same problem with the 100% (even though I selected that option in the software) not appearing on the dotted line as an election.  Before I contact the IRS, do you have any update on your situation?  Any luck with contacting the IRS and getting them to accept the 100%.

Thanks, Dan

Johnl777
Level 3

DanCoc,

No luck contacting IRS. I had my client set up online accounts for him and spouse with IRS; then I electronically filed Form 2848 POA to represent him, but he has yet to get online notice of such. I also efiled a 2020 Form 1040-X amended return on 9/3/21... no acknowledgment of receipt from IRS yet other than efile acceptance from ProSeries. I had no entries of p. 1; only filled out Part III on p.2 of 1040-X explaining what happened and attached PDF of Schedule A with contribution amount on dotted line next to line 11 for qualified 100% deductible contributions. When called IRS, I only got collections dept, they extended due date of amount due about 7-8 weeks, but could not comment on Sch A... so that is why I efiled the 1040-X. Client is not happy. Efiling the 2848 was supposed to be fast, but done on 9/24/21, but no indication of such sent to client IRS accounts yet. My hope is to get POA, then try to call. But calling is not a good option.

DanCoc
Level 2

Thank you very much for the detailed reply.  Looks like filing the Amended return with the Sch A showing the missing amount next to Line 11 is the best next course of action.

I just received a CP11 for the same issue, but we had the elected amount on the line.

PATAX
Level 11

What a joke... Sounds like an i r s Nightmare on Intoit Street...

0 Cheers
sjrcpa
Level 15

@Johnl777 IRS is taking 60 days to process 2848s -no matter how they received them. Fax, electronic and paper are processed in the order received, they say.


ex-AllStar
PATAX
Level 11

@sjrcpa thanks for the information

0 Cheers
DanCoc
Level 2

Just as a follow up to my client's situation, I call PPS and they agreed to make the change (correction) for the Schedule A, Line 11 election over the phone.  I did this a couple of weeks ago.  Neither my client nor I have received a follow up letter yet, I was told we would get one, but it is still probably too early to expect that.  

0 Cheers