PTE to 1 SH but not the Other - ACCRUAL BASIS

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@IntuitAlicia 

or

@IntuitGabi 

Would either of you ask LC to put out a statement on this issue?  Either Intuit has taken a tax position  contrary to IRS guidance or I don't understand.

I think LC assumes that the PTE tax is paid in 2021. Or else why would it ask to override Federal income?  I asked this 3 weeks ago. The diagnostic is still there.

The payment was made in 2022 so Federal income does not change.  This is an accrual basis corporation, but AFAIK the IRS has not resolved this question about deducting PTE when paid in 2022.  

LC needs to explain if it has taken the position that the PTE paid in 2022 is deductible in 2021.  And, if yes, why.

Thanks for your ideas.

SCorp, 1 SH elected the PTE payment deduction and the other SH did NOT.   Payment was made by 3/15/2022This diagnostic results. 

Update: I can clear the diagnostic by overriding the Federal income amounts.  But, then a new diagnostic appears that advises that "certain" K-1 items need to be overridden too.

Diagnostic:

A California Passthrough Entity Elective Tax has been computed on some of the shareholders and will need to be taken as a deduction on the Federal return. As a result, the K-1s for all the shareholders will be getting a portion of this deduction reflected through ordinary income or rental income. Please use the Federal K-1 overrides input screen and override both the Federal and state income amounts. These will be required entries to allocate the deduction to only the shareholders that elected to participate

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And I'm not going to override all the items to clear this diagnostic #25650. That is too much work.