Sec 1377(a)(2) Election

Forum|Forum|2 years ago
February 25, 2024
2 replies
21 views

I've made a Section 1377(a)(2) election for a S-Corp in 2023 and the instructions require this election be printed on the top of each K-1 for each shareholder. When I try to print the K-1's the IRS required header will not show on the K-1's.

Thank you in advance if anyone has a solution.

ProSeries Professional

This topic has been closed for replies.

Best answer by dkh

go to the top of the K1 for each shareholder where the statement should be and do an override then type in the required statement

dkhAnswer

Level 15

go to the top of the K1 for each shareholder where the statement should be and do an override then type in the required statement

P

plemmonsgAuthor

Level 2

Thank you so much for the information.

dkh

Level 15

You're welcome.

T

Thinhster

Level 2

Can anyone share experience on how to make Section 1377(a)(2) election for form 1120s using Proseries? Thank you

P

plemmonsgAuthor

Level 2

I filed one in early March and with the help from Intuit community, I was able to finalize the K-1's. I had assumed when I checked the box in the IRC Elections for the 1377(a)(2) it would carry this over to the K-1 header for the election. You will need to override the field on the top of each K-l and insert "Section 1377(a)(2) Election Made".

I had to override the fields on the K-1's to correctly report the income during each accounting period for the year.

I also attached the signed Sect 1377 election to apply specific rules in connection with the termination of a Shareholder's entire interest with the return when I e-filed the return. The Federal 1120-S was submitted and accepted by the IRS. If you're filing a North Carolina CD401S, just go ahead and paper file the return. You'll have to override some fields on the NC K-1's and the return will be rejected.

Hope this helps you!

F

file locked by another user

Level 2

Do I need to attach a note to show calculation of two separate tax years for each K-1 when Section 1377(a)(2) election is made?

Thanks,

Sharon

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