Blank Tax Return Due to Passive & Basis Losses

[G2R]

ATX won't let me efile a tax return that has income items, but the entire 1040 is blank due to basis and passive loss limitations.

Do you still paper file this so the IRS has a log of the activity & carryforwards that happened on the other forms (ie, Sch E pg 1 & 2)?  Also, is it a benefit to paper file just so the statute of limitations commences?  

[Margaret CPA in OH]

Aren't there schedules with calculations showing income offset by basis (Sch. D?) and determining the passive loss limitations (Form 8582?)?  If zeroes are carried to 1040, it seems the supporting schedules would substantiate that.  And, if there is income, where is it shown?  If you still can't e-file, I would definitely paper file as it's likely IRS will have documents to match with the income (1099DIV, etc.) and a return should prevent nastygrams for not filing.  It may take a year or two, though....

[Gail in Virginia]

Is there any way to round or truncate basis on something so that $1 of income is carried to the front  of the return?  I  think that would allow you to e-file without making a tremendous difference in carry forwards. 

[Lion EA]

Put $1 in Interest Income.

[G2R]

Thanks everyone!  The $1 suggestion worked and saved me the hassle of paper filing! 

[Lion EA]

Yep, I use it from time to time; because this year more than ever, I want them all e-filed.

Always file to start the SOL running.

[Catherine]

I have clients who live in the Czech Republic who never have any US taxable income of any kind.  The only way we get to e-file is by putting in $1 of interest income every year.  Silly, but there you go.  Certainly a mailed-in return would have a very small chance of arriving on time (if ever).  Although the Czech postal system is far better than the Australian system!