Reject Code: F1120-259-01
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.
IRS Reject Code F1120-259-01 occurs when Form 1120, Schedule K, line 13 is marked No, indicating that the corporation's total receipts and assets are more than $250,000 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 and assets are more than $250,000, Schedule L must be completed. From the main menu of the tax return, (Form 1120) select:
- Schedule L - Balance Sheets
Additional Information:
IRS Instructions for Form 1120