Mailing in Scorp Basis stmt

[Taxadvisor VA]

In my haste to get all returns efiled on Monday past, I forgot on one of my Scorp returns to attach the shareholder basis statement.
What's the remedy?
Mail in Form 8453-S with the basis statement? _______
What IRS address? _______________
Thanks in advance.
Taxadvisor VA.

[DaveinTexas]

I'll be the guinea pig

In my haste to get all returns efiled on Monday past, I forgot on one of my Scorp returns to attach the shareholder basis statement.
What's the remedy?
Mail in Form 8453-S with the basis statement? _______
What IRS address? _______________
Thanks in advance.
Taxadvisor VA.

As far as I know, there is no requirement for this statement to be attached to the 1120S, unless I am really behind on my CPE. I would say your remedy is to do nothing, as the basis keeping requirement is the burden/responsibility of the shareholder.

[appelman]

Agreed.

So Taxadvisor VA can relax.

As far as I know, there is no requirement for this statement to be attached to the 1120S, unless I am really behind on my CPE. I would say your remedy is to do nothing, as the basis keeping requirement is the burden/responsibility of the shareholder.

[S T]

I will also say - I don 't believe IRS cares about the "basis stmt for shareholder", hopefully not a requirement You are not alone, I have asked this question in the past, just keep in file and/or provide to the shareholder.

I usually furnish (if I have all of the info and doing the accounting, etc) to the shareholder or partner.

Sandy

[JON]

IF a Loss

I thought if K-! showed a loss a basis statement had to be attached - to the 1040 of the stockholder. My practice of small businesses we have stopped attaching basis with corporation(S) and partnerships - basis is the responsibilty of the individual not the business. We have received some comments, but they have become used to it.

[Gretel]

Agree with Jon. If loss basis statement needs to be attached for S-Corps, if partnership, basis statement needs to be on file. You are heading for a preparer penalty if you don't comply

To answer original question: I would mail in copy of what was mailed originally and write in big letters on top: Already filed but forgot to attach basis statement.

[DaveinTexas]

If the basis keeping is the requirement of the shareholder

then why would there be a preparer penalty imposed for not attaching a basis statement to the 1120S?

This excerpt from the 1040 Schedule E instructions may provide some insight:

"If you are claiming a deduction for your share of an aggregate loss, attach to your return a computation of the adjus-ted basis of your corporate stock and of any debt the corporation owes you. See the Schedule K-1 instructions for details."

Mystery solved....until next time!

[WhiteOleander]

Well, those instructions state that the s/h attach their basis worksheet to the 1040. It does not state to attach the worksheet to the 1120s

[JON]

Attachment required with the 1040

there is no requirement to have basis statement with 1065 or 1120S. There is no requirement to keep that information. We do on our small businesses because most of the time we do the individual returns.

[DaveinTexas]

My point exactly!

Well, those instructions state that the s/h attach their basis worksheet to the 1040. It does not state to attach the worksheet to the 1120s

Couldn't have said it better myself!