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

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.