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.
To enter preparer explanations in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Miscellaneous Forms
- Explanations
- Select a type of explanation:
- Preparer Notes - 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.
- 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
- De Minimis Safe Harbor Election (Treas. Reg. §1.263 (a)-1(f))
- Mark-to-market election
- NOL carryback election
- Election to ratably accrue real estate taxes
- Election to amortize start-up costs
- 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.
Note: These notes and statements apply to the current year's return only; they are not pulled forward with other return data the following year in the return for the same taxpayer.
To remove notes and statements in ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Miscellaneous Forms
- Explanations - Choose Preparer, Election, or Regulatory.
- Delete