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Diagnostic Ref. 27038 Schedule B Question 4 in ProConnect Tax

SOLVEDby Intuit2Updated July 13, 2023

The following informational diagnostic is generating:

"1065 Schedule B, Question 4. If Schedules K-1 are filed with the tax return and furnished to the partners on or before the due date (including extensions), the partnership has met the requirements of Form 1065, Schedule B, Question 4, and is not required to complete Schedules L, M-1, and M-2, item F on page 1 of Form 1065, or item L on Schedule K-1. Check the box "Question 4 requirements are met" to answer 'yes' to Question 4 and suppress these schedules. To answer "yes" to Question 4 while still printing these schedules, make an additional entry in "Force Schedules L, M-1 & M-2 to print". This entry also forces the printing of the Analysis of Partner's Capital Account (Schedule K-1, item L). (ref. #27038)"

Why is this diagnostic generating?

This informational diagnostic will appear when based on your current input, the partnership seems to meet all four of the following conditions:

  • Total receipts less than $250,000,
  • Total assets at the end of the year less than $1 million,
  • Schedules K-1 timely filed and furnished to partners, and
  • Not required to file Schedule M-3

ProConnect Tax will continue to generate Schedules L, M-1, and M-2 and answer "No" to question 4 unless you make an entry indicating the partnership meets all requirements. This is to prevent accidentally filing noncompliant returns.

To answer 'Yes' to question 4:

  1. From the Input Return tab, go to General  Other Information (Schedule B).
  2. Check the box "Question 4" requirements are met.

Checking this box will also suppress the Schedules L, M-1, and M-2. If you still want to print the schedules:

  1. From the Input Return tab, go to Balance Sheet, M-1, M-2 Balance Sheet Miscellaneous.
  2. Scroll down to the Other section.
  3. Enter a 1 in Schedules L, M-1, and M-2: 1=force, 2=when applicable [Override].

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