In Lacerte, when trying to e-file a new S-Corporation with a Form 2553, Election by a Small Business Corporation, the following e-file diagnostic may generate:
e-file: When you attach the 2553 as a PDF file, the effective date of the S-Corporation election must be before 01/01/20XX. (ref. #12718)
How to resolve diagnostic ref. 12718
This diagnostic is typically triggered when you've entered an effective date on Screen 1, Client Information, after the beginning of the calendar year, but you've entered no short year dates on Screen 3.1, Miscellaneous Information.
To resolve diagnostic ref. 12718:
- Go to Screen 3.1, Miscellaneous Information.
- Under the section Short Tax Year Information, select the box Short tax year for depreciation.
- Enter the date of incorporation in Beginning fiscal year [O].
- Enter 12/31/20XX in Ending fiscal year [O].
- Enter the number of months in Number of months if short year (for annualization).
