I’m preparing my business return and have noticed an issue on Schedule K-1, Item I2.
The entity involved is a disregarded entity that is wholly owned by an individual. The form is currently showing the beneficial owner’s entity type as “Disregarded Entity” on Schedule K-1, Item I2, when it should instead reflect the beneficial owner’s entity type - Individual.
This appears to be a software issue and is resulting in incorrect reporting. Please let me know whether this is a known issue and when it is expected to be fixed, or if there is an available workaround.
