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Troubleshooting ProConnect Tax diagnostic ref. 587 - Schedule C is not required when gross income

by Intuit Updated 1 year ago

The following e-file critical diagnostic is generating in ProConnect Tax:

Schedule C is not required when gross income, total expenses or net profit/loss are all zero. (ref. #587) 

Follow these steps to clear the diagnostic:

  1. From the Input Return tab, go to Income Business Income (Sch. C).
  2. Scroll down to the General Information section.
  3. Enter a 1 in the 1=delete this year, 2=delete next year field field.
    • The program will ignore this activity and won't generate a Schedule C.

If assets are tied to the activity a separate diagnostic will generate due to the now "missing" activity. Also, if prior year unallowed passive losses are entered for the business activity and a Form 8582, Passive Activity Loss Limitations, is needed for the return, you will need to ignore the diagnostic to disable it and e-file.

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