Understanding ProConnect Tax diagnostic ref. 8828

The diagnostic message is:

"The small business simplified overall method was applied to all domestic production activities on Form 8903." (ref. #8828)

Why the diagnostic occurs

• This critical diagnostic generates when one activity is indicated as Small business simplified overall method but another activity hasn't been indicated as either Small business simplified overall method, Simplified deduction method, or other.
• In this situation, ProConnect Tax will automatically apply the Small business simplified overall method for all activities and trigger the diagnostic.
  • The diagnostic is a caution to correct the return if applying the Small business simplified overall method to other activities (with Domestic Production Information) is incorrect.
  • The diagnostic won't prevent you from e-filing.
• If applying the Small business simplified overall method for all activities is correct, you can check the Ignore box next to the diagnostic to indicate that the diagnostic has been reviewed. You can also go to the other activity or activities with DPA information and make the input to apply the small business simplified overall method. That will clear the diagnostic.
• If the other activities with DPA information should have a different method applied, you'll need to locate the other activities and indicate the correct DPAD method.

Partnership K-1:

1. From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ Partnership Info (1065 K-1).
2. Go to the Lines 11-20 tab.
3. Scroll down to the All Domestic Production Activities Information section.
4. Make an entry in 1=apply small business simplified overall method, 2=simplified deduction method.

S-Corp K-1:

1. From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ S-Corp Info (1120S K-1).
2. Go to the Lines 11-17 tab.
3. Scroll down to the All Domestic Production Activities Information section.
4. Make an entry in 1=apply small business simplified overall method, 2=simplified deduction method.