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Entering penalties paid by a corporation or S corporation in Lacerte

SOLVEDby IntuitLacerte Tax59Updated August 20, 2021

This article will assist you with entering penalties paid by a corporation or S corporation, such as payroll penalties or late filing penalties, in Lacerte. Follow the instructions for applicable tax type below.

Follow these steps to enter penalties paid in the S-Corporate module:

  1. Go to Screen 31, Schedule M-1, M-3.
  2. Select Schedule M-1 from the left navigation panel.
  3. Scroll down to the Expenses Recorded on Books Not Included on Schedule K (+) section.
  4. Locate the Nondeductible Expenses subsection.
  5. Enter any penalties or fines incurred by the S corporation during the year in the Penalties field (code 106).
    • Penalties include payroll tax penalties, late filing penalties, and any other nondeductible penalty or fine.
    • The program prints a supporting statement and carries the amount to the following forms:
      • Schedule K, line 16
      • Schedule K-1, box 16
      • Schedule M-1, line 3
      • Schedule M-2, line 5, column (a) (AAA)

Follow these steps to enter penalties paid in the Corporate module:

  1. Go to Screen 39, Schedule M-1, M-3.
  2. Select Schedule M-1 from the left navigation panel.
  3. Locate the Schedule M-1 (Book-Tax Adj.) section.
  4. Locate the Expenses Recorded on Books not Included on this Return subsection.
  5. Enter any penalties or fines incurred by the corporation during the year in the Penalties field (code 117).
    •  Penalties include payroll tax penalties, late filing penalties, and any other nondeductible penalty or fine.
    • The program includes this amount on Schedule M-1, line 5d and prints a supporting statement.

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