e-file rejection: "AZ 1040 Reject Code 702 FRM - The amount on the Net Capital Gain line is not consistent..."" for an Arizona 1040 resident or non-resident return in SureFire."
🔍 What This Guide Covers
This guide explains how to resolve an e-file rejection in SureFire for an Arizona 1040 resident or non-resident return with the rejection message:
AZ 1040 Reject Code 702 FRM - The amount on the Net Capital Gain line is not consistent...
⚠️ Before You Begin
Note: Line numbers noted below may be different for prior years.
❌ Rejection Details
Full Rejection Text
702 FRM - The amount on the Net Capital Gain line is not consistent with values on related lines.; FRM - The amount on the Net Capital Gain line is not consistent with values on related lines.
🧩 Resolution (Resident vs. Nonresident)
Step 1: If You Are Filing as an Arizona 1040 Resident
Use this when you need to fix the Net Capital Gain line consistency for a resident return.
Go to Form AZ 140.
Verify if there is a capital gains/loss on Pg 1, Line 19.
Note: The State of Arizona is looking for Line 20 and/or Line 21 to be populated to determine whether the amount on Line 18 is a short-term or long-term capital gain or loss. Refer to the instructions to determine which line to fill out. This will satisfy the state rejection.
Click File Save Return.
Step 2: If You Are Filing as an Arizona 1040 Nonresident
Use this when you need to fix the Net Capital Gain line consistency for a nonresident return.
Go to Form AZ NR.
Verify if there are Arizona capital gains/loss on Pg 1, Line 33
Note: The State of Arizona is looking for Line 34 or 35 to be populated to determine whether these are short-term capital gains or long-term gain/loss. Line 33 is an input for short-term capital gains. In order for Line 34 to populate, fill out the Form AZ NRPY Gain Wkt, Net long-term capital gains or losses from Arizona sources column. This will satisfy the state rejection.
Click File Save Return.
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