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How to resolve ProConnect Tax critical diagnostic Ref 6574 - Form 990 Unrelated gross income

by ProConnect Tax Online Updated 7 months ago

This article will help resolve the following critical diagnostic for Form 990 and/or Form 990-T:

  • The organization has unrelated gross income of $1,000 or more during the year covered by this return, and has not filed a Form 990-T tax return this year (ref #6574).

This diagnostic generates when one or more items of revenue, worth $1,000 or more, are entered as unrelated business income. When the exempt organization has $1,000 or more of unrelated income, Form 990-T is required. ProConnect Tax produces this diagnostic when it detects that Form 990-T is required, but isn't currently generated with the return.

You can clear this diagnostic by either removing the unrelated income or by generating Form 990-T.

To generate Form 990-T:

  1. Go to Input Return Client Information.
  2. Scroll down to the Return Info section. 
  3. From the dropdown menu select the appropriate 990-T return type.
    • The 990-T return should now be generating and the diagnostic cleared.

To resolve this diagnostic without generating Form 990-T:

  1. Go to Input Return Revenue  Program Service Revenue.
    • Make sure there are no amounts entered in the Unrelated Business Income inputs.
  2. Go to Input Return Revenue Other Income Producing Act.  
    • Scroll to the section Unrelated Business Income and make sure there are no entries.
  3. Go to Input Return Revenue Other Revenue.
    • Make sure there are no entries in the Unrelated Business Income fields.
  4. Go to Input Return Revenue Rental Income.
    • For each property, make sure there are no entries in the Unrelated Business Income fields in the General Information section.
  5. Go to Input Return Revenue  Investment Income.
    • Make sure there are no amounts in the Unrelated Business Income inputs.
  6. Go to Input Return Revenue Dispositions.
    1. Select the Misc (C/O, CGD. etc) link in the top-right of the input screen.
    2. Make sure there are no entries in the Capital Gain Distributions (1099-DIV) section, in the field for Unrelated business income (2a)
  7. Go to Input Return Revenue Fundraising and Gaming.
    1. Select Fundraising and Gaming Events.
    2. Select the Event link in the top-right of the input screen.
    3. For each event, make sure there are no entries in the Unrelated business income fields.
  8. Go to Input Return Revenue Inventory Sales.
    • Make sure there are no entries in the Unrelated Business Income fields.
  9. Go to Input Return Revenue Income Overrides.
    1. Select Unrelated Business Income Overrides. 
    2. Make sure there are no entries on this screen.
ProConnect Tax

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