Scorp Basis Mistake

[Taxadvisor VA]

My bad as I recently discovered that I didn't do a shareholder basis adjustment review on a 2011-1120S and the loss claimed was overstated.
An amended 1120S return needs to be filed.
What would you send in?
- Shareholder Basis amended statement?
- Amended explanation worksheet?
- Amend K1?

I don't believe you need to send in page1,2 (Ord Inc Loss Details), page 3-5 (Schedule K,L,M-1), as what changed was the loss claimed and the figures provided. I'm thinking along the lines of a Schedule E where too much loss was claimed due to limitations and you adjust the amount of the loss and not the rental income/expense figures.
I always think that less is better anyway but I don't want the amended 1120S to get kicked back.

What do you think?

Thanks and please be specific in your reply,

Taxadvisor VA

[DaveinTexas]

Basis only error?

Was there only a basis error or an error on the 1120S. No need to file an amended K1 or 1120S if only a basis issue.

Your post is a little confusing. It sounds like you merely need to correct the SH basis worksheet and possibly the shareholder 's return if he/she overstated flow through loss.

[Taxadvisor VA]

DaveinTexas

Was there only a basis error or an error on the 1120S. No need to file an amended K1 or 1120S if only a basis issue.

Your post is a little confusing. It sounds like you merely need to correct the SH basis worksheet and possibly the shareholder 's return if he/she overstated flow through loss.

Thanks for the reply. It is only a basis error and nothing else.
Best Regards,
Taxadvisor VA

[DaveinTexas]

Ah, I see

Then the only change that needs to be some is the shareholder's 1040X and the form 6198 if losses are limited. Also, if the shareholder took distributions in excess of basis, there will be a schedule D to file with the Sch D.

[Taxadvisor VA]

Basis error correction

Then the only change that needs to be some is the shareholder's 1040X and the form 6198 if losses are limited. Also, if the shareholder took distributions in excess of basis, there will be a schedule D to file with the Sch D.

Thanks Dave! Very helpful and informative.

[DaveinTexas]

You are most welcome!

Glad to help.