Mississippi Alert Code XMS00-093

Alert Code: XMS00-093
Schedule D is needed if it is required for Federal purposes

When the federal individual tax return includes Schedule D, Mississippi requires a copy of the schedule to be included with the Mississippi tax return, and when the Mississippi return is electronically filed in Tax Processors Plus we include a copy of Schedule D as well as any other federal information the state needs.

There is a scenario, however, when the federal return includes capital gains but Schedule D isn't required, i.e.,

• Capital gains are reported on Form 1099-DIV.
• There is no 1099-DIV with an amount reported in boxes 2b, 2c, or 2d.
• There are no capital losses.
• There is no capital gain being deferred due to investing in a QOF.

In this scenario, the check box on Form 1040 line 7 will be checked indicating that Schedule D isn't required.

Since Tax Processors Plus includes Schedule D in the federal return when it's needed and also includes it with the Mississippi return, this Mississippi alert code isn't indicating there is a problem with this return. It's simply alerting you to the fact that Schedule D needs to be sent with the Mississippi return if it is also included in the federal return.