The following critical diagnostic is generating in Lacerte:
- Schedule E is not completed for Form 5471 #. This schedule is required for Category 3 and 4 filers. (ref. #2007263)
This critical diagnostic will generate when a Category 3 or 4 filer is entered for a Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations.
Follow these steps to clear the diagnostic:
- Go to the applicable Information Return of U.S. Persons (5471) screen for you tax type:
- Screen 68 (Individual)
- Screen 63 (Corporation)
- Screen 56 (S-Corporate)
- Screen 48 (Partnership)
- Screen 66 (Fiduciary)
- Select the Schedule E - Income, War Profits, and Excess Profits Taxes Paid or Accrued section from the left navigation menu.
- Locate the Part III - Taxes for Which a Foreign Tax Credit is Disallowed.
- Enter the tax in U.S. dollars in the U.S. Taxes field.
- If there's no activity to report, enter a -1 or enter the name of country or U.S. possession, amount of tax in foreign currency, and conversion rate in the Income, War Profits, and Excess Profits Taxes Paid or Accrued (Ctrl+T) field.
This critical diagnostic is not an e-file diagnostic and won't prevent e-filing.