You can include with a tax return preparer notes, regulatory explanations, and election statements. These are sent to the IRS with the return and can prove helpful if the return is subject to additional scrutiny by the IRS.
You can also add to a return preparer statements that aren't sent to the IRS but are for your own purposes.
To enter these notes and statements, from the Main Menu of the tax return (Form 1040) select:
- Miscellaneous Forms
- Notes / Statements - Several options are available:
- Miscellaneous Statements (Not Sent to the IRS) - Create here explanatory notes for yourself or others who may be examining the return. Any statement created here is not sent to the IRS when the return is e-filed. The statement is available for printing under the View Results menu, and it can also be be indicated as non-printable if desired.
- Preparer Notes (Sent to the IRS) - Notes created here are included with the return data when the return is electronically filed. These are voluntary notes to the IRS, providing additional information about the return.
- Regulatory Explanations (Sent to the IRS) - Create a note here when you need to cite a specific regulation for certain tax treatment, status, exception, or exemption when there is no official IRS form designed for that purpose. The specific regulation must be cited followed by explanatory or supporting information.
- Election Explanations (Sent to the IRS) - Create a note here when the taxpayer is making an election for certain tax treatment, status, exception or exemption based on an instruction for the tax form or in a related tax publication when there is no official IRS form designed for that purpose. Examples of elections:
- Electing out of Bonus Depreciation - Select the Opt Out button to produce a pre-worded statement. You will need to indicate the class of property electing not to use Bonus Depreciation.
- De Minimis Safe Harbor Election (Treas. Reg. § 1.263 (a)-1(f)) - Select the Opt Out button to produce a pre-worded statement.
- Mark-to-market election
- NOL carryback election
- Election to ratably accrue real estate taxes
- Election to amortize start-up costs
- Schedule or Form Change Explanations - Create a note here when you need to tell the IRS you're doing something different on a form or schedule than the instructions might allow.
Note: These notes and statements apply to the current year's return only; they aren't pulled forward with other return data the following year in the return for the same taxpayer.
To remove notes and statements, from the Main Menu of the tax return (Form 1040) select:
- Miscellaneous Forms
- Notes / Statements - select the note/statement