Feature logo for article on how to suppress basis statements in ProConnect Tax Online

ProConnect Tax Online (“PTO”) by default will attempt to generate a basis statement for all shareholders on a Form 1120S S Corporation tax return. This feature is generally recommended to be used for business tax returns, but in certain complex situations may need to be suppressed.

In order to suppress the basis statements so they are not generated as part of the tax return package, navigate to the following location on the “Input Return” screen of PTO:

Schedule K  Schedule K Miscellaneous

On this screen, the first box will contain an input with the label “Shareholder basis schedules”. Input a “2” into this box to suppress basis statements on the return:

Screenshot of ProConnect Tax Online showing where to navigate to suppress the basis statements or schedules that are generated by default for all shareholders in an S Corporation.

 

Tip: Basis statements are not filed as part of a tax return at either the federal or state level. Suppressing basis statements, though generally not recommended where avoidable, does not result in returns being rejected.

Blake is a CPA and a law school graduate specializing in taxology, tax and finance process automation and optimization, and cloud accounting systems.

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