Form 1065 Section 6221(b) election

[jburg202]

I am using the Business Desktop version 2025 for my partnership. I keep getting the following error:

"You indicated the partnership is electing out of the centralized partnership audit regime under section 6221(b). Be sure to complete Schedule B-2"

Schedule B-2 is complete but I cannot get rid of this error.

[PatriciaV]

You may wish to review the relevant forms using Forms Mode in TurboTax Business.

1. Open your return and click the Forms icon in the TurboTax header. 
2. In the list of Forms in My Return on the left, scroll down and look for Form 1065 p1-4. 
3. Click the form name to open it in the large window. 
4. Scroll down to Schedule B Line 33 to confirm there is a check in the "Yes" box.
5. Use the QuickZoom button under Line 33 to open Sch K-1 Wks. This form as an embedded scroll bar to move between partners (or use page-down).
6. Confirm that there is a check in the box for "Check to include partner in Schedule B-2," as applicable.
7. Use the QuickZoom button on Form 1065 under Line 33 to open Schedule B-2.
8. Confirm that all eligible partners are listed correctly.
9. Click Step-by-Step in the header to return to the main screens.
10. Now run SmartCheck again to see if the error has been resolved.

Note that if a form has a red exclamation point next to the name or a field appears in pink, there is an error on that form. Click the Errors icon above the forms list to open a message box below the form. The error message will give you more information about the issue that needs to be resolved.

[jburg202]

I followed all the steps, everything was and is correctly entered but I am still getting the error.

[ThomasM125]

One problem could be that all of your partners are not individuals, C corporations, a foreign entity that could be taxed as a C corporation were it a domestic entity, S corporations or estate of a deceased taxpayer. You can look on the K-1 schedules in item I(1) to see what the entity type is for the partners. If not, then you cannot make the 6221(b) election.

[jburg202]

The partners are my husband and I. This is our final return for the partnership, if that makes a difference. Everything is filled out properly. 2 partners, needing 2 k-1's with everything split 50/50.

[PatriciaV]

It's possible this is a reminder to check Schedule B-2 and not a request to enter something more. Have you run the final review?

[jburg202]

I have run the final review. I suppose it could be just a reminder. I've been ready to submit my taxes since Feb 1st but cannot because of the form 4562 depreciation error which has not been fixed by Turbo Tax yet. I guess I'll have to wait to see if I can submit after that error is fixed.