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The following diagnostic is generating:

For e-file purposes, a return reporting a short year (364 days or less) must have either the Initial return or Final return box checked on line F, Form 1041.

Solution 1:

A fiscal year cannot be longer than 365 days. To indicate a full-fiscal-year return:

Go to Screen 2.1, Miscellaneous Information.

Remove the Beginning fiscal year date [O].

Remove the Ending fiscal year date [O].

Go to Screen 1, Client Information.

In the Miscellaneous Info section, enter the two-digit month that the fiscal year ends on in the Fiscal Year End (MM) field.

Solution 2:

To indicate a Final or Initial year return:

Go to Screen 2.1, Miscellaneous Information.

Check the box for Initial return (code 6) or check the box for Final return (code 22).

Note: When checking Final year - You must adjust beneficiary distributions so that 100% of all income, capital gains, and credits are being allocated (if applicable).

Note: For fiscal year returns Lacerte uses screen one not screen the overrides on screen 2.1 to determine the year end. Enter on screen 1 in the Fiscal Year End (MM) field put in the 2 digit month that is the last for the fiscal year.

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