jonathanngcpa
Level 2
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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.

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