California - Schedule R-7

If you're seeing a message in the electronic filing (e-filing) steps of the California 1120 return indicating that the return can't be e-filed because it contains California Schedule R-7 Election to File a Unitary Taxpayers’ Group Return (which is not eligible for e-filing), you may want to review the following information to determine if you indicated Schedule R-7 should be filed with the return in error.

If you indicated in the return that there are members listed in Schedule R-7, Part I, Section A who are subject to income or franchise tax, that entry would indicate that Schedule R-7 is needed. If Schedule R-7 is needed, you will need to complete it by hand and paper file the return as TaxAct does not currently support that form.

If you determine Schedule R-7 is not needed in the return, you can correct that indication in the program (if it was made in error).

To remove the entries indicating Schedule R-7 is needed in the 1120 return and that there are members listed on Schedule R-7:

  1. From within your TaxAct return (Online or Desktop), click State to expand, then click California (or CA). On smaller devices, click in the upper left-hand corner, then click State.
  2. Click Basic Information in the California Quick Q&A Topics menu to expand, then click Schedule Q Questions.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled California - Unitary Group, respond to the questions presented, then click Continue. You should then be able to e-file the return.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.