Sch L to M-2 Reconciliation in Lacerte

[AnotherTaxGuy]

Happy tax season,

Question about S Corp return entry.

I come from using Prosystems. Whenever I prepared a return where there was a difference in ending Retained Earning to the ending M-2 balance, we included a statement to explain the difference.

I cannot find where to do that in Lacerte, does it have the ability?

Thanks!

[kgreen8393 · Accepted solution]

I create my own Statement.  Go to screen 39 for Notes.  Make sure to check the Statement box on the left.  (Worksheets don't go with an e-file, but Statements should).

Type in your own Note. 

We do the same thing, reconciling from M-2 to Schedule L thru the Clients Notes tab.

[AnotherTaxGuy]

Thank you! I was on the phone with Lacerte at the same time I posted the message, and they said the same thing.

Also appreciate the emails about making sure the statement box is checks.

Very interesting, because I always thought the reconciliation was a requirement, because we always did them. Still surprised Lacerate doesn't have an official mechanism for creating it, but this works fine.