Schedule L/M-1/M-2: Addressing the Critical Diagnosis Warning in ProConnect

Forum|Forum|4 months ago
March 4, 2026
3 replies
11 views

Hi everyone,

I’ve noticed a few discussions regarding the Critical Diagnosis warning in ProConnect Tax (PTO) for Form 1065.

I understand that if an LLC Partnership meets all four conditions in Question 4 of Schedule B, filing without Schedules L, M-1, and M-2 is a legitimate option under IRS regulations (all zeros).

The PTO warning appears to be a software configuration safeguard rather than a reflection of IRS filing requirements; the IRS will accept these returns as long as the conditions are met.

Has anyone found a preferred way to "clear" this diagnosis in the 2025 module without unnecessarily filling out the schedules? I'd love to hear how you're handling this for your clients.

Thank you,

ProConnect Tax

Best answer by mlcpa

Hi, problem resolved. Thank you for your assistance.

If checking the Question 4 box didn't completely wipe the values, it’s likely because there is "forced" data in the system. Use this global override:

Navigate to: Input Return ---> Balance Sheet, M-1, M-2 ----à Balance Sheet Miscellaneous.
Find the "Other" Section: Scroll down to the bottom.
Global Override: Look for the field Schedules L, M-1, and M-2: 1=force, 2=when applicable [Override].

Enter a 2. This tells the software to strictly follow the Question 4 exception and omit the schedules entirely, regardless of any current year’s income it sees in the background.

M

mlcpaAuthor

Level 3

I mean "a legitimate option under IRS regulations (all blank)." All zeros is not correct, please disregard. Thank you.

sjrcpa

Level 15

Can't you just ignore it?

The more I know the more I don’t know.

Intuit_Kallana

Level 7

Hi @mlcpa, that diagnostic is one of those that is a warning to preparers to make sure that everything is correct. The reason being is unfortunately the software can't be programmed for every possible client scenario. Accordingly, it is a critical diagnostic and not e-file blocking diagnostic, and as @sjrcpa pointed out you can click "ignore" then refresh the diagnostics to file the return if you find it is not applicable to your client's situation.

M

mlcpaAuthorAnswer

Level 3

Hi, problem resolved. Thank you for your assistance.

If checking the Question 4 box didn't completely wipe the values, it’s likely because there is "forced" data in the system. Use this global override:

Navigate to: Input Return ---> Balance Sheet, M-1, M-2 ----à Balance Sheet Miscellaneous.
Find the "Other" Section: Scroll down to the bottom.
Global Override: Look for the field Schedules L, M-1, and M-2: 1=force, 2=when applicable [Override].

Enter a 2. This tells the software to strictly follow the Question 4 exception and omit the schedules entirely, regardless of any current year’s income it sees in the background.

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