The following e-file critical diagnostic is generating in the Corporate return in ProConnect:
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.
Follow these steps to resolve this diagnostic:
- From the Input Return tab, go to Miscellaneous Forms ⮕ Inf. Return of U.S. Persons (5471) ⮕ Information of U.S. Persons.
- Ensure that you are in the tab for the correct Filer.
- Go to the Foreign Corporation tab.
- Scroll down to the Schedule A - Stock of the Foreign Corporation section.
- Click on the Stock Information (Click on button to expand) and it will open a details window.
- In the Description field, choose either Common, Preferred, or Treasury from the drop down menu.
- Repeat step 8 for each entry in this screen, if there are multiple entries.
- Click Ok.