I have a large credit amount in Reconciliation Discrepacies because checking was not reconciled for years. I went back to March 07, but to balance I had to let QB and it sent thousands of dollars to Rec Dis. Trying to close year, What do I do?
Contact your CPA, or whoever prepares your tax returns. Regardless of the cause, the resolution is the same. You have to take the hit (income or expense) in the current year, unless you want to amend and re-file the prior year's tax return. Make a journal entry to bring the discrepancy account to zero and the offset to Other Income or Expense (since it is an extraordinary adjustment, it shouldn't be included in Ordinary Income/Expense.)
And promise yourself that you WILL reconcile every account every month from now on.
