If Form 1120, Schedule K, Line 13 does not have a choice of "Yes" indicated, then Form 1120, Schedule L, Line 15d must have a value.
Reject Code F1120-259-01 occurs when Form 1120 Schedule K line 13 is marked No, indicating that the corporation's total receipts and/or total assets are $250,000 or more and Schedule L has not been completed.
To correct reject code F1120-259-01, either change the question to Yes, or complete Schedule L.
If the corporation's total receipts and assets are less than $250,000, change Schedule K line 13 to Yes. From the main menu of the tax return (Form 1120) select:
- Schedule K - Other Information
- Receipts and Assets at Year End Less Than $250,000? - Select YES. Exit the return and re-transmit.
If the corporation's total receipts or total assets are $250,000 and/or more, Schedule L must be completed. To create Schedule L, from the main menu of the tax return (Form 1120) select Schedule L - Balance Sheets. Make entries on Schedule L as needed.
Additional Information:
IRS Instructions for Form 1120