Misc./Other Info
PrerequisitesYou should be familiar with or have completed the Client/Shareholder/Officer Info & Stock Ownership exercise in this module. ObjectiveIn this exercise, you will make entries in some of the pertinent input fields in Screen 3.1, Misc. Info./ Other Info./ Amended and review the effect on Form 1120-S. |
Facts
Enter the following information for a sample client:
| Client number | TUTSCOR2 |
| Client Information | Data entry: |
| S-Corporation Name | Tutorial S Corporation 2 |
| S-Corporation DBA | Lesson 2 |
| Fiscal year end | 9 |
| Accounting method | Other |
| Other accounting method | Mix |
| TMP Shareholder # | 1 |
| Shareholder Information | Data entry: |
| Shareholder 1 Name | Shareholder 1 |
| Shareholder 1 Name | Shareholder 2 |
| Stock Ownership | Data entry: |
| Shareholder Name | Number of Shares Owned at Year End |
| Shareholder 1 | 50 |
| Shareholder 2 | 50 |
| Miscellaneous/Other Information | Data entry: |
| Title of signing officer | President |
| Initial return |
|
Program Considerations
Use the following table when completing data entry fields in Screen 3.1, Misc. Info./ Other Info./ Amended:
| Use: | To: |
| Title of signing officer | Print the title of the S-Corporation officer signing the tax return on all IRS and state signature forms that require an officer's signature. |
| Initial Return, Final Return (check boxes) | Check the applicable boxes at the top of Form 1120S, line F. |
| Do not clear balance sheet ending cost and accumulated accounts on final return |
Calculate and print the ending balance of the following accounts: - Buildings and other depreciable assets The program will not calculate and print the ending balances of these accounts on the balance sheet if this is the corporation's final tax return and this box is not selected. |
| Accrue federal tax (check box) | Accrue federal income tax. The program calculates total tax, credits the ending balance of Prepaid Federal Income Tax, up to the prepaid federal income tax entered, and credits Federal Tax Payable by any tax remaining. Refer to the F1 Help for the Prepaid Federal Tax field (Balance Sheet input) for more information on federal tax accrual. |
| Accrue state tax option 1 (check box) | - Deduct the "calculated" state tax on Form 1120S, line 12. The program only accrues state taxes to ordinary income on Form 1120S, page 1. If the state tax applies to rental real estate, other rental activities, or farm activities, you must manually accrue the state tax to the federal return. - Add back the state tax on the state return as an ordinary income adjustment. - Credit the ending balance of Prepaid State Tax up to the prepaid state tax entered and credits State Tax Payable by any tax remaining. - Credits any state underpayment penalty to the balance sheet with the state tax. - Carries any state underpayment penalty to Schedule M-1, line 3, if applicable. |
| Accrue state tax option 2(check box) | - Credit the ending balance of Prepaid State Tax up to the amount in this field. - Credit any remaining balance to State Tax Payable. - Credit any state underpayment penalty to the balance sheet with the state tax. - Not deduct the calculated state tax from ordinary income on Form 1120S. Enter the state tax deduction in State Tax. - Add back the state tax entered in State Tax to the state return as an ordinary income adjustment, as appropriate. This amount also carries to Schedule M-1, line 6. - Carries the calculated state tax to Schedule M-1, line 3, and any state underpayment penalty, if applicable. |
How?
To enter miscellaneous information:
- Add the sample client.
- Open Screen 3.1, Misc. Info./ Other Info./ Amended from the Contents tab.
- Enter the applicable information from the Miscellaneous/Other Information table above.
Tips & Shortcuts
You can press [F1] on any input field to learn where on the appropriate form the information flows or to get additional information regarding that entry.
Review
You should have generated a Schedule K-1 for each shareholder and Form 1120-S with the following results on page 1:
- Calendar year dates 10/01 - 9/30/2005 should be printing on the top of the form.
- Box 1 on line F should be checked.
- "President" should be printing on the title section of the signature area.
Also, note the insertion of the other accounting method on line 1 of Schedule B (Form 1120-S, p.2).
Troubleshooting
Problem: The fiscal year dates are not printing correctly on Form 1120S.
Solution: Check the Fiscal Year End entry in Screen 1, Client Information and make sure that you did not enter
any overrides in Screen 3.1, Misc. Info./Other Info./Amended.