Configuring Return Configuration Set 1120 and 1120S/Corporation Filing Options

The 1120 & 1120S/Corporation window in the return configuration set allows you to configure options that are applicable to Corporation and S Corporation returns.

To configure 1120 & 1120S/Corporation options, do the following:

1. Open Dashboard, click Application Links on the navigation panel, and then click Configuration > Return configuration sets under Tax.
2. Double-click a return configuration set on the navigation panel.
3. Click 1120 & 1120S/Corporation Options on the navigation panel.
4. Select preferences for the 1120/1120S options in the various areas. Explain the 1120 and 1120S options.

Option	Description
Allocation and apportionment options
Print state detail worksheets	Produces worksheets showing the detail entries for allocation and apportionment (per factor) for each state/city with MST data.
Print summary worksheets	Produces Summary worksheets for allocation and apportionment (per factor). These worksheets summarize the allocation amounts and apportionment factors for all states and cities with MST data.
Balance sheet options for tax input method
Adjust balance sheet for automatic sales	If selected and you are using the Automatic Sale feature, the end-of-year balances are reduced by the assets sold.
Adjust ending asset balances for current acquisitions	If selected, ending asset balances are adjusted for any acquisitions made during the tax year.
Adjust ending accumulated depreciation, depletion and amortization	If selected, ending accumulated balances are adjusted to include current expense as reported on Form 1120/1120S.
Print and other options
Print balance sheet regardless of applicability	Forces the printing of Schedule L regardless of applicability. You can override this option on the General > Return Options worksheet.
Suppress printing of AMT forms	Suppresses all printing of alternative minimum tax versions of Schedule D, Form 4797, and Form 6252. You can override this option on the General > Return Options worksheet.
Suppress printing of state estimate vouchers for EFT	Suppresses printing of state estimate vouchers for the electronic fund transfer system. You can override this option on the General > Return Options worksheet.
Suppress deduction of input for state/city estimated tax payments on the return	Eliminates double entry for state taxes paid. You can override this option on the General > Return Options worksheet.
Complete Part I of Schedule M-3 and produce Schedule M-1 instead, when applicable	Produces Schedule M-3, Part 1 and Schedule M-1 and suppresses production of Schedule M-3, Parts II and III. Note: This option applies to tax years 2015 and higher.
Print 1120S Schedule K-1 page 2	Select one of the following: Include in K-1 copy only Include in K-1 and accountant copies Include in K-1 and client copies Include in K-1, accountant, and client copies Include in ALL copies Suppress in all copies You can override this option on the General > Return Options worksheet.
Print 1120 state taxable income workpaper	Select one of the following: Do not print this schedule (default) Accountant's copy only Client's copy only Both accountant's and client's copies You can override this option on the General > Return Options worksheet.

5. Select preferences for the 1120S only options. Explain the options for 1120S only.

Option	Description
1120S recap statement options
Schedule K-1	Select one of the following: Suppress K-1 recap statement Include in all copies Include in accountant and taxpayer copies Include in accountant copy only You can override this option on the General > Return Options worksheet.
Passthrough	Select one of the following: Suppress passthrough statement Include in all copies Include in accountant and taxpayer copies Include in accountant copy only You can override this option on the General > Return Options worksheet.
1120S options
Include carryover in the net increases to restore debt-basis	Includes losses in the net increases to restore debt-basis on the Shareholder Basis worksheet.
Print Schedule K to K-1 reconciliation	Prints the Schedule K and Schedule K-1 reconciliation in the accountant copy. You can override this option on the General > Return Options worksheet. Note: This options applies to tax years 2015 and higher.
Prepare all pages of Schedules K-2/K-3	Select one of the following: Blank (Default) 8865 version only 1120S and 8865 versions 1120S version only You can override this option on the General > Return Options > Processing Options > Processing Options – Overrides Office Manager/RCS > Prepare all pages of Schedule K-2 and K-3 Note: This option is available for tax year 2022 1120S returns and later.

6. Click Save to save your changes and continue working in the return configuration set, or click Save & Close to save your changes and close the return configuration set.