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11645: 1120 - EF Message 0123 on Final Year

1120 Corporate

A final year corporate return is producing EF Message 0123. This message says I have a balance remaining at the end of year on Schedule M-2 line 8, but my M-2 line 8 is zero. How would I resolve this?

EF message 0123:

ENDING UNAPPROPRIATED RETAINED EARNINGS: this return is marked as a "Final return" on screen 1, and there is a balance remaining at the end of the year on Schedule M-2, line 8.

Enter a "liquidating adjustment" amount on screen M2 for line 3 or line 6 to adjust the end-of-the-year unappropriated retained earnings to "0" (zero).

When an 1120 is marked as a final year return, the software forces a zero on line 8 of the M-2.

To balance the Schedule M-2, enter a liquidating adjustment amount on the M-2 screen in data entry for line 3 (Increases other than net income per books) or line 6 (Other decreases).

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