Issue with Distribute K-1 in Turbotax Business

[manvik]

TT Business is reporting a PDF generation error while using the Distribute K-1. This happens when you have multiple partners in a company using the same TIN (Section E of the K1). Is there a work around to make it print these K1 automatically as individual files for distribution. I have around 7 partners. 4 are individuals and 3 are partners through the same company and hence use the same TIN for these 3 partners. TT fails to generate the individual files in this situation. It happened in TT 2019 and I see the problem in TT 2020 Business also.

[AkinaLO]

Please contact TurboTax support for assistance with this issue. 

What is the TurboTax phone number?

[manvik]

Thanks for the suggestion. I already did and they could not help me with the software issue. Asked me to post it to the community board.

[JeffreyR77]

Please clarify the makeup of this organization. 

What you appear to be attempting to do does not seem to be consistent with generally accepted accounting practices.  

Why does your Partnership (THIS COMPANY) issue three Forms K1 with the same Partnership TIN? 

How do you differentiate between them?  Each of the K1s standing alone states how much that entity share of Profit and Loss responsibility is and synopsis of Capital account. 

Alone and side-by-side, it would seem these K1s risk confusing anyone reviewing them.

Recommend THIS COMPANY issue 5 Forms K1 - 4 to individuals and 1 to the Partnership member. 

Allocation of income and expense to its 3 partner members should be their bookkeeping responsibility, not THIS COMPANY's. 

THIS COMPANY truly only has only 5 members, not 7.

[manvik]

Thanks for the reply.

The issue with the same partnership TIN is coming up due to same IRA Services holding company for around 3 partners. Here is the full structure as an example.

Partnership company - has 7 partners, 3 of them are individual investors and hence used their unique SSN. One partner is another company and we have setup their FEIN. The remaining 3 partners are IRA investments from 3 individuals using the same IRA services holding company. For these 3 partners, we have used the same FEIN of the IRA services holding company, with their names as FBO XXXXX, IRA Services company.

We never had issues generating Sck K1 for all these 7 partners when our accounting was done by the CPA. So, I believe the partnership company was setup correctly by the CPA. Once we moved to doing our taxes using TT Business, we never had any issues setting up the partners in TT, especially those 3 IRA accounts as partners. It does not complain that those 3 partners have the same FEIN of the IRA services company. All works out well upto this point.

Once I am ready to generate the K1 for partners, I use the "Distribute K1" option in TT and this is where I have the problem. TT generates couple of individual K1s and it fails abruptly without any error logs. My only option to generate K1 for each partner is go to the Print Forms functions, where I can chose individual forms and generate the PDFs. I chose each partner separately and generate the Sck K1 PDF.

Hope you are able to understand our scenario. Since TT Business is failing only in the Distribute Sch K1 PDF, I think it maybe a software issue

Thanks.

[JeffreyR77]

Thank you for the clarification.  The structure of the organization is understandable now.  Are you able to produce K1s using your workaround?

[manvik]

Yes, I am able to produce K1 using the workaround. However, this issue seems like a software bug and hence hoping that TT would fix in the software. This problem existed in 2019 and also in 2020. The workaround becomes cumbersome when I have to manually generate K1s for around 14 partners in the company individually. I wish the Distribute K1 functions properly as expected.

How do I get TT Team to fix this bug in the software.

Thanks.