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. Form 6198 is not currently supported in ProWeb.
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 1120S
- Entity Information - Mark the box "All Investment is At-Risk, then exit the return and re-transmit.