1120S Return, always been an S-Corp. Have a distribution entered on page 5, this does not exceed prior earnings. The error message keeps telling me that we have C -Corp distributions and will not let me mark the excessive interest income earnings n

Forum|Forum|5 years ago
May 18, 2021
2 replies
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Entered the distribution on page 5. Error message tells be I can't mark form for excessive investment interest because on 1120-S,Page 5, M-2 Line 8, col.c shows as a c-corp. This has z

ProSeries Professional

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Best answer by sm5463

Hello Acct1981. If the S corp has never been a C corporation, you do not need to complete the Excess Net Passive Income Tax Statement, which is where I believe you are seeing this error.

Thanks

PATAX

Level 12

@Acct1981 I have never had an issue in the past with distributions for S corporations... Are you sure you are entering it in the correct location?

A

Acct1981Author

Level 2

I think so. I entered the distribution on the 1120S, page 4, A (Shareholders Distributions & Dividends Smart Worksheet. Thanks for your reply.

S

sm5463Answer

Level 3

Hello Acct1981. If the S corp has never been a C corporation, you do not need to complete the Excess Net Passive Income Tax Statement, which is where I believe you are seeing this error.

Thanks

A

Acct1981Author

Level 2

Thanks for your help, that is the problem.

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