NJ S corp return Net Income from Book not flowing from Federal Schedule M-1

Forum|Forum|6 years ago
March 27, 2020
1 reply
14 views

Hello all,

I finalized and printed a S corp tax return on Monday 3/23, and I have cleared all critical diagnostic messages. I didn't efile it on Monday and revisited it on Tuesday 3/24 and noticed my NJ balance sheet is out of balance due to the new critical diagnostic message.

I noticed on Schedule C of the form CBT-100S (NJ S Corp tax return), the amount of Net Income per books is different than the amount from the Federal Schedule M-1. The amount on Schedule C "must match to amounts reported on Schedule M-1 of federal tax return", as this is how it is written on the form. The wrong amount on the form now is the NJ adjusted Net Income (Line 38 of form CBT-100S), plus the FULL amount of the Meals and Entertainment deduction (not 50%).

So I called PTO tech support and they said they are aware of this critical diagnostic and they are working on a fix now. I don't know how this can happen and thank God I sent out a good copy to my client and saved the good copy in my computer already, and I also filed the extension so I am just needing to wait for them to fix this. Does this happen to your NJ S corp tax return? Is this typical? I am just curious. Thank you for your time to read this. Stay safe everyone.

ProConnect Tax Online

This topic has been closed for replies.

T

Tpollaro

Level 2

Happening to me and just wasted 2 hours trying to figure it out. Need a fix for this as it was never an issue in the past.

J

jonathanngcpaAuthor

Level 3

Thank God I wasn't alone. I spent 2 hours chatting/talking with the support people from ITO and they claim this is NOT a bug and it is NOT a known issue therefore they won't do anything for now. Thankfully I filed extension so I am not going to do anything for now. I hope a lot more people like you and me report this to them so that the development team will fix this. I also have proseries so I am going to retype the whole tax return to see whether things are the same or changes. If it changes that means the ITO development team screwed this up big time.

Just FYI, the rep on the phone told me the number on Schedule C line 1 of CBT-100S flows from Schedule K part II line 8, not from the Federal 1120S Schedule M-1. I told them this is wrong because the form on CBT-100 indicates it should roll from federal schedule M-1 line 1 or the pro forma. But they kept saying this is not a bug nor a known issue. I told them I told you now it is a known issue now. I was so upset I hope Intuit support team see this and act on this immediately.

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