Balance sheet on 1120S and electronic filing

[oceanlovin'ea]

When I am preparing an 1120S I put the balance sheet information in the program and print out a copy for my records, but I mark the return not to print the balance sheet and schedule M-1.
I needed another copy of the balance sheet so I went into the program and just changed the marking to yes to print the balance sheet and it is still there and I could print it.

So my question is....When this return is electronically filed does the balance sheet information go too? It is in the program but I have said "don't print". That doesn't necessarily mean don't file it. Should we be deleting this information before doing the electronic filing?

I have emailed TaxslayerPro with this question but they close at 4 and it is 4:45 when I thought of this. So I may have to wait till Monday for an answer from the about their program.

Linda, EA

[Uncle Sam]

Balance Sheet Disclosure

I prepare and disclose balance sheet information on all partnership and corporation returns regardless of whether it's required or not.
The reason is - I don't want ex-clients coming to me for those details after they're no longer clients, or successor accountants calling to ask me either.
I do the same with depreciation schedules.

Why is there reluctance to provide the client or IRS with complete information simply because it's not required?

[geekgirldany]

I am not sure if it goes to them or not. I assume that if the question is marked no on the $250,000 income/assets then it does not.

That being said I always do a balance sheet even if not required.

[oceanlovin'ea]

I do balance sheet

I do the balance sheet and print it out for the client and for me. I know that information is very important to the client and to me.

Since IRS says it isn't required, I usually mark the box on schedule B not to print.

I was told somewhere along the line, that if IRS says it isn't required not to send it. So I quit sending those forms with the return.

So my question was more about what is transmitted when we electronically file.

Linda, EA

[Uncle Sam]

Required Filings

Then do you also not prepare/file a taxpayer's return if it has only gross proceeds from
securities sales even though the net profit falls below the taxable income threshhold, simply because it's not required?
I try to avoid those situations - where I nip the problem right at the bud to avoid future
unnecessary correspondence and look like a fool to the client for not properly preparing a return.

Simply because "it's not required" doesn't mean that you don't take preventive measures to avoid future issues.

[oceanlovin'ea]

Sale of stock, etc is always put on a taxpayer's tax return. IRS only gets the sales figures and not the actual gain or loss from the sale. So you have to do the return and show the actual income. Rental property is the same way. You need to report the income and expenses from rental property.

I was just referring to such things as a balance sheet on a corporation return. Or I guess the same would apply if a taxpayer only had social security income and mabe a little bit of interest from a savings account. IRS really doesn't want those returns filed. There is no tax liability for those people. I have several clients this year that are no longer working and only get social security.....nothing to report.

Linda, EA

[Gretel]

Then do you also not prepare/file a taxpayer's return if it has only gross proceeds from
securities sales even though the net profit falls below the taxable income threshhold, simply because it's not required?
I try to avoid those situations - where I nip the problem right at the bud to avoid future
unnecessary correspondence and look like a fool to the client for not properly preparing a return.

Simply because "it's not required" doesn't mean that you don't take preventive measures to avoid future issues.

To compare reporting stock sales with including the balance sheet is like comparing apples and houses.

The tax return itself gives the option of not filing the balance sheet with the tax return, how can this be viewed as a tax return not properly filed?

I also always do the balance sheet since this is the only way to be sure that everything is accounted for. Plus it is fun for me. I also always have a copy for myself and my clients since I want my clients to feel free to change to another preparer whenever they desire.

I wish every preparer had the same attitude and I never would see a business tax return with no balance sheet.