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Sale of MLP Prevents Electronic Filing?

I sold some units of a MLP and received a sales schedule from the partnership. The sales schedule lets me calculate how much is posted to Form 4797 Part II, line 10 and Form 1040 Schedule D for this transaction.

Because of this sale, I understand I am required to attach an IRC Section 751 statement to my filing which states (in part) "The Taxpayer has reported ordinary income upon the disposition of units of ...."

Assuming the above is correct, I see no way of being able to file electronically with Turbotax because of the need to attach the above statement to the filing. Therefore, I will have to submit a paper return. Please someone correct me if I am wrong about any of the above.

Reply to
njoracle
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I can't speak about Turbotax specifically, but the professional tax software I use allows for including statements like that in the electronic file.

Reply to
Tom Healy CPA

transaction.

Which software is that? I need the ability to attach "white paper" attachments to convert some clients to e-file (who historically have been excluded from such).

Reply to
D. Stussy

I think the MLP lawyers have gone overboard in telling you to attach this statement.

Reply to
Arthur Kamlet

messagenews: snipped-for-privacy@18g2000prd.googlegroups.com...

Probably most do. A few years ago I used UltraTax; it had entries on the E Filing screen for "Preparer Notes" and "Regulatory Explanation." Essentially these are free-form notes that are part of the electronic file. I'm now using CCH Small Firm Services for business returns; the individual e-file forms include sections for preparer notes, election statements, and regulatory explanations; and there is an Elections/ Statements form for business returns that is also included in the electronic file. Finally, for individual returns I'm using ProSystem Fx; as with the others, there's a form in the Electronic Filing section for free-form explanations, elections, and preparer notes.

Reply to
Tom Healy CPA

I agree. I will probably just e-file and wait for the IRS to ask me mail in the statement if they really want it.

Reply to
njoracle

messagenews: snipped-for-privacy@18g2000prd.googlegroups.co m...

OK, thanks. So, several different packages now support this. I've bitched to the IRS every year for the past decade about not accepting "white paper attachments" and it was nice of them NOT to tell me that it's now supported. :-(

Reply to
D. Stussy

Turns out that Turbotax (Deluxe) lets you create a "Blank Form" where the IRC Statement 751 can be added. After creating the "Blank Form" and doing an error check, it passes okay. I really won't know if I can actually e-file until I attempt it sometime in April.

Reply to
njoracle

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