What is this error: Form 1120S p3-5 (Not Done)

[k2allar]

Hi - Looking at the Forms view, there is a red exclamation mark beside "Form 1120S [3-5 (not Done)"

It's not required that I submit a Balance Sheet, but TurboTax is telling me that my balance sheet is out of balance (Schedule L).

When I look at the Forms Required to File taxes, it doesn't show a Schedule L. Can I just submit the return and the Schedule L won't be sent? Is it just a glitch that the software keeps asking me if I want to proceed because there are errors?

Thanks!

[PatriciaV]

You can skip the Balance Sheet section if:

• Total business income (before deductions) is under $250,000; and
• Your business is not filing an Alabama, Connecticut (non-partnership), District of Columbia, Georgia, Kentucky, Louisiana, Massachusetts, Mississippi, New Jersey (non-partnership), New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, or Tennessee return; and
• Corporation year-end assets are under $250,000 or partnership/LLC year-end assets are under $1,000,000.

Check the Yes box on Form 1120S p1-2 Line 11:

You may need to review your answers to the questions under Federal Taxes >> Balance Sheet to change this answer to "Yes."