If the checkbox "Other Closing Inventory Method" on Schedule C (Form 1040), Line 33c is checked, then the statement "Other Method Used to Value Closing Inventory" must be attached.
This rejection occurs when the "Other" valuation method is selected on Schedule C, typically because no inventory is being reported.
To resolve this rejection in the Desktop Program:
From the main menu of Form 1040, select:
Income
Business Income or Loss and select to edit.
Answer Schedule C Questions
Method Used to Value Closing Inventory – change this to "Cost."
To resolve this rejection in the ProWeb Program:
From the main menu of Form 1040, select:
Income
Schedule C – edit
Questions About the Operation of Your Business
Accounting Method – select "Cash" or "Accrual."