NJ S corp return Net Income from Book not flowing from Federal Schedule M-1

[jonathanngcpa]

Hello all,

I finalized and printed a S corp tax return on Monday 3/23, and I have cleared all critical diagnostic messages. I didn't efile it on Monday and revisited it on Tuesday 3/24 and noticed my NJ balance sheet is out of balance due to the new critical diagnostic message.

I noticed on Schedule C of the form CBT-100S (NJ S Corp tax return), the amount of Net Income per books is different than the amount from the Federal Schedule M-1. The amount on Schedule C "must match to amounts reported on Schedule M-1 of federal tax return", as this is how it is written on the form. The wrong amount on the form now is the NJ adjusted Net Income (Line 38 of form CBT-100S), plus the FULL amount of the Meals and Entertainment deduction (not 50%).

So I called PTO tech support and they said they are aware of this critical diagnostic and they are working on a fix now. I don't know how this can happen and thank God I sent out a good copy to my client and saved the good copy in my computer already, and I also filed the extension so I am just needing to wait for them to fix this. Does this happen to your NJ S corp tax return? Is this typical? I am just curious. Thank you for your time to read this. Stay safe everyone.

[Tpollaro]

Happening to me and just wasted 2 hours trying to figure it out.  Need a fix for this as it was never an issue in the past.

[jonathanngcpa]

Thank God I wasn't alone. I spent 2 hours chatting/talking with the support people from ITO and they claim this is NOT a bug and it is NOT a known issue therefore they won't do anything for now. Thankfully I filed extension so I am not going to do anything for now. I hope a lot more people like you and me report this to them so that the development team will fix this. I also have proseries so I am going to retype the whole tax return to see whether things are the same or changes. If it changes that means the ITO development team screwed this up big time.

Just FYI, the rep on the phone told me the number on Schedule C line 1 of CBT-100S flows from Schedule K part II line 8, not from the Federal 1120S Schedule M-1. I told them this is wrong because the form on CBT-100 indicates it should roll from federal schedule M-1 line 1 or the pro forma. But they kept saying this is not a bug nor a known issue. I told them I told you now it is a known issue now. I was so upset I hope Intuit support team see this and act on this immediately.

[jonathanngcpa]

Also I checked my 2018 S Corp return (same company) now I have the same critical diagnostic message saying my NJ balance sheet is out of balance. So funny lol

[jonathanngcpa]

Just a new update of this issue and to those of you practitioner who have the same problem: I found a colleague who uses ProSeries and he filed the tax return for me without the problem (NJ balance sheet out of balance), and the number on Schedule C line 1 on form CBT-100S is rolled directly from Schedule M-1 of the form 1120S. So this clearly is a bug within ITO and the development team from ITO needs to get this fix and how does two different product lines (ProSeries and ITO) from the same company (Intuit) yields completely different results on the same tax return?

[Dirk]

This is too frustrating!  I found the same problem, wasted at least an hour with support, only to find that THEY knew of this problem and notified NO ONE!  Now its over a week and still NO FIX!  I'm pissed, so much so that I'm writing this reply.  Hey Lacerte, when will this get fixed?

[RichV]

Same issue, does anyone have an idea when this is going to be fixed?  Or is Lacerte waiting for the 7/15 deadline?