The following e-file critical diagnostic is generating in the Corporate module of Lacerte:
e-file: Form 5471 #X: The description of stock reported in Section A, Stock of the Foreign Corporation must be either Common, Preferred or Treasury for electronic filing purposes. (ref. #2007939)
This diagnostic may generate if you typed the Description for the Stock Information (Ctrl+E) field instead of selected from the dropdown menu.
If this a Consolidator return, you'll need to go to the parent and subsidiaries to review your entries.
Follow these steps to resolve this diagnostic:
- Go to Screen 63, Information Return of U.S. Persons (5471).
- Select Information of U.S. Persons from the left navigation panel.
- Select the applicable Filer from the left navigation panel.
- This is the filer that was listed in the diagnostic.
- Scroll down to the Schedule A - Stock of the Foreign Corporation section.
- Hold down Ctrl+E on your keyboard in the Stock Information (Ctrl+E) field.
- Click in the Description field and use the dropdown arrow to select the applicable stock type:
- Repeat step 5 and 6 for each entry (if there are multiple entries in Stock Information).
- Click OK.