What can i do if i enter a net loss on the S Corp K1 form and there is no baisi to support that loss but the software still reports the loss on form 1040

Forum|Forum|8 hours ago
September 2, 2026
8 replies
26 views

ProSeries Professional

IRonMaN

Level 15

Enter zero on the K-1 worksheet, but make sure the loss shows up on the 7203 for future returns.

Slava Ukraini!

U

username103067Author

Level 2

Does the IRS Compare that entry to the amount on the K1 submitted with the 1120S?

T

Terry53029

Intuit Community Champion

I also do as Ironman, but add a note loss not allowed due to basis

U

username103067Author

Level 2

Does The IRS compare the zero amount entered on the S CorpK1 with the amount on the K1 submitted with the 1120S?

T

Terry53029

Intuit Community Champion

I believe they do which is why I fill out the supporting statement (the letter icon just to the left of amount)

U

username103067Author

Level 2

Excellent Answer. Thank you very much.

sjrcpa

Level 15

I doubt you’re ever going to hear IRS say your K-1 has a loss but your tax return showed zero.

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

U

username103067Author

Level 2

You have been a great help. Thank you very much.

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