Reject Code: SE-F1040-001-02
If Schedule E (Form 1040), 'AnyAmountIsNotAtRiskInd' checkbox is checked, and the corresponding 'NonpassiveLossAmt' has a non-zero value, then Form 6198 must be present in the return.
IRS Reject Code SE-F-1040-001-02 occurs when Schedule E is present in the return with the box on page 2, line 28(f) marked, indicating that any amount is not at risk. When this box is marked, Form 6198, At-Risk Limitations must be included in the return.
If all investment in the partnership or S-Corporation is at risk, unmark box 28(f) on Schedule E. From the Tax Return Summary page select:
- Federal Section
- Other Income
- K-1 Earnings
-
Schedule K-1 Form 1065 or
Schedule K-1 Form 1120-S - Entity Information - Check the box All Investment is At-Risk.
Once you've indicated all the investment is at risk, you can retransmit the return.
Additional Information: