Initial Return

A partnership, corporate, or tax-exempt organization return that has the box Initial Return marked on screen 1 should not have any beginning balances on the Balance Sheet (Schedule L in a 1065, 1120-S, and 1120 or Part X in a 990), so the software blanks out this column.

An S corporation return that meets both of the following conditions on screen 1 should not have any beginning balance on Schedule L:

• The Date of election as an S corporation and the Date incorporated are both equal to the beginning of the tax year (January 1 for calendar years or the fiscal-year beginning date for fiscal-year returns)

• The First year as an S corporation box selected

If you enter beginning balances for a 1065, 1120-S, or 990 return, Return Note 349 is produced.

Final Return

Similarly, a return that is marked Final return on screen 1 should have no ending balances on Schedule L, so the software blanks out that column.

If ending balances have been entered for a 1065,1120, 1120-S, or 990 return, the software produces Return Note 342.

Totals

Reconciliation totals are displayed on screen L. If changes are made, the return must be recalculated to display the updated values.

Force Print

If it is a final return, the end-of-year (EOY) column is “zeroed out;” however, there may be cases where the preparer needs this information. In this case, select Force-print final end of year at the top of screen L (1065, 1120, and 1120-S returns).

If Schedule B, question 4 is "Yes" but you need to see amounts in View/Print mode, select Force Schedules L, M-1, M-2, & K-1 Section L on screen PRNT.