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

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.