1120S Return, always been an S-Corp. Have a distribution entered on page 5, this does not exceed prior earnings. The error message keeps telling me that we have C -Corp distributions and will not let me mark the excessive interest income earnings non C.

[Acct1981]

Entered the distribution on page 5.  Error message tells be I can't mark form for excessive investment interest because on 1120-S,Page 5, M-2 Line 8, col.c shows as a c-corp.  This has z

[PATAX]

@Acct1981 I have never had an issue in the past with distributions for S corporations... Are you sure you are entering it in the correct location?

[Acct1981]

I think so.  I entered the distribution on the 1120S, page 4, A (Shareholders Distributions & Dividends Smart Worksheet.  Thanks for your reply.

[sm965897 · Accepted solution]

Hello Acct1981. If the S corp has never been a C corporation, you do not need to complete the Excess Net Passive Income Tax Statement, which is where I believe you are seeing this error. 

Thanks

[Acct1981]

Thanks for your help, that is the problem.