10054: 1065/1120S/1120/990 - Schedule L - Beginning or End of Year Blank

Initial Return 

A partnership, corporate, or tax exempt organization return that has the box Initial Return marked on screen 1 should not have any beginning balances on the Balance Sheet (Schedule L in a 1065/1120-S/1120 or Part X in a 990), so the software blanks out this column.

An S corporation return that has:

• the Date of Election as an S corporation and the Date incorporated both equal to the beginning of the tax year (January 1st for calendar years, or the fiscal year beginning date for fiscal year returns), and
• the First year as an S corporation box selected

    should also not have any beginning balance on the Schedule L.

If you have entered beginning balances in either a 1065, 1120-S, or 990, the software produces Notes page 349.

Final Return 

Similarly, a return that is marked Final Return on screen 1 should have no ending balances on Schedule L, so the software blanks out that column.

If ending balances have been entered in a 1065,1120, 1120-S, or 990, the software produces Notes page 342.

Beginning with Drake14, reconciliation totals are displayed on the L data entry screen.

If changes are made, the return must be re-calculated for the new numbers to display.

Force Print Options 

If it is a final return, the EOY column is “zeroed out,” however, there may be cases where the preparer needs this information. Select the Force-print final end of year at the top of the L screen (1065/1120/1120-S).