But without preparing a balance sheet, how do you know that you aren't missing revenue or expenses, which in this case you were. How much other revenue was there that didn't show up on a 1099? Also, how do you know what that shareholder's basis is without a balance sheet?

Slava Ukraini!

Skylane

Intuit Community Champion

Yes.... and a reconciliation may help in the future.

If at first you don’t succeed…..find a workaround

T

Terry53029

Intuit Community Champion

Being that you prepared the clients tax return, and are covered under circular 230 you should advise client that an amendment should be prepared, and advise him of the possible consequence's but that is the clients call.

BobKamman

Level 15

Has the shareholder's 1040 been filed yet? I would add it to his return as "other income," and let the sleeping 1120-S lie. De minimis non curat lex.

T

Terry53029

Intuit Community Champion

@BobKamman that would be an easy workaround, and I have done similar things in past. Depending on client it could become a recurring issue. If it were a new client I would rather but him through a few costly hoops, so it doesn't become habit.

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