Is the email regarding Critical alert QBI legit?
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.
The list of your impacted return submission IDs can be accessed by entering your Customer Account Number here: Impacted Clients Lookup
ProConnect ProSeries Product Manager