It appears that we have in indeed found a bug at least in Intuit’s ProConnect Tax online software which not only makes me rather happy and relieved but I’m sure Janine Melnitz would be thrilled as well with the official news from our friends at the NC Department of Revenue that confirms that as suspected, there is no de-coupling between North Carolina and the Federal Internal Revenue Code when it comes to Schedules L/M-1/M-2 being optional for businesses with receipts and assets less than $250,000.
You asked whether corporate taxpayers are required to submit Schedules L and M when they are not required to submit federally (due to the small business threshold). I couldn’t find any source that said this information is required by NC when not required by the IRS. I also reached out to my supervisor, and he confirmed. If you are not required to submit those schedules on the federal return, you will not be required to submit them on the NC return.
Thanks and have a great tax day
NC Dept of Revenue Official Response to Question Submitted on 12 Apr 2024
So there we have it…ProConnect should not have forced me to populate those schedules on NC Form CD-405 in order to electronically file the returns.
And there was much rejoicing in the hope that by the time my next corporate tax form preparation comes round in about three months that this bug will be squashed!
