Skip to main content
W
w joyner
January 20, 2019
Solved

Company Information Income Tax form used 1120 vs 1120s

  • January 20, 2019
  • 1 reply
  • 0 views

Hello I have used QuickBooks Desktop (currently 2017 pro) with the same database file for over 14 years .  The other day I noticed that under the setting: My Company / Company Information / Report Information / Income Tax Form Used we are setup for 1120 (Corporation).  We have always been a 1120s (S Corporation).  If I switch this setting to the correct one (1120s), what problems if any will occur?  Does this setting make any difference in QuickBooks?  How does this affect my company file or the way QuickBooks works? etc.  etc.

Thanks

Best answer by qbteachmt

It is a Cross Platform Marketing setting for importing this QB file into an Intuit professional tax preparation program or into TurboTax for business. If you never do this at all, the entire "tax line mapping and tax form setting" is Pointless in QB. It isn't a QB function.

 

Changing the tax form will result in currently Mapped accounts to be unmapped.

 

As a consultant, I check your setting to see which type of entity you are, and if this is in use, it is set right.

 

You might not ever even care. If it mattered, you or your tax preparer would have noticed before now.

 

Change it, then  don't bother Mapping Accounts.

1 reply

qbteachmt
qbteachmtAnswer
January 20, 2019

It is a Cross Platform Marketing setting for importing this QB file into an Intuit professional tax preparation program or into TurboTax for business. If you never do this at all, the entire "tax line mapping and tax form setting" is Pointless in QB. It isn't a QB function.

 

Changing the tax form will result in currently Mapped accounts to be unmapped.

 

As a consultant, I check your setting to see which type of entity you are, and if this is in use, it is set right.

 

You might not ever even care. If it mattered, you or your tax preparer would have noticed before now.

 

Change it, then  don't bother Mapping Accounts.

B
baldscotty
February 2, 2019

This is my first year using QuickBooks desktop and TurboTax Business desktop.  The entire year I had my Tax Form company info in QuickBooks set to sole proprietor.  Of course, now my import to TurboTax business will not work unless I change the tax form to partnership.  My business was formed as an LLC properly with the secretary of state and with the EIN.  I recieve the alarming notice that "income tax settings now invalid and will be deleted in all accounts!"  What repercussions will this have regarding all my data I have entered for 2018 if I say yes and continue?

 

thanks

 

qbteachmt
qbteachmt
February 2, 2019

"The entire year I had my Tax Form company info in QuickBooks set to sole proprietor."

You can change that at any time.

 

"Of course, now my import to TurboTax business will not work unless I change the tax form to partnership.  My business was formed as an LLC properly with the secretary of state and with the EIN."

 

That's not what Tax Line Mapping relates to. It relates to Sched C or 1065 or 1120 or 1120S tax Form Lines. Mapping of Chart of Accounts to Tax Form Lines for reporting.

 

"I recieve the alarming notice"

It's a Reset Notice. It's not Alarming.

 

"that "income tax settings now invalid and will be deleted in all accounts!"  What repercussions will this have regarding all my data I have entered for 2018 if I say yes and continue?"

 

It's not changing Data. The Tax Prep reports in QB will no longer have any accounts linked to any tax form Lines, because they have been Reset to "nothing linked yet."

 

    Terms & ConditionsAccessibility statement