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posted May 15, 2021 6:02:24 PM

E-File rejected because of negative inventory on Schedule C

My tax return was rejected because it says I reported a negative inventory on Schedule C. 

This is not true, I reported a positive inventory of $5,213. 

I've tried resubmitting 3 times and every time it is rejected.  This is frustrating because TurboTax did a check and found 2 other errors ( which I corrected), but TurboTax doesn't find this error.  But the IRS rejects it anyway.  So frustrating.  Any ideas?

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1 Replies
Level 15
May 15, 2021 9:25:56 PM

@schulz995 , something does not make sense ---  Prior YE inventory ( value ) + all inventories acquired during the year LESS  current year end inventory should be what has been sold/used ---- so please look at the inventory reconciliation ( $ amount)  i.e. all the entries  in the inventory area.  Perhaps you also need to look at the  gross sales  especially if yours  has no  value add i.e.  like you but flowers , arrange these  and sell.

If the above fails to uncover, perhaps you can share the  items on schedule-C -- just line number and amounts  ( no personally Identifiable information please-- this a public board -- and then may be  one of can see why  IRS is claiming a negative inventory.