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Level 2
posted Feb 26, 2020 11:34:03 AM

Does Intuit have ANY plans to fix the 1065 Partnership error that has existed for 2 filing years now?

Last year I spent over 6 hours on the phone with Intuit because I could not e-file my partnership 1065 return.  It kept insisting there are errors in the return.  It took me to the page where you have to enter a personal representative for the partnership.  After I entered all the information it say it requires, it then runs the error check again and would not let me e-file because it NOW says all the information I just entered for a personal representative cannot be entered since the partner filing the return (ME!) is not an EIN.  I finally gave up and paper filed the returns.

 

Fast forward to 2020 and low and behold, the same bug is in the 2019 software.  I re-installed the software and updates twice.  I installed the software on a new machine that has never had any intuit products on it.  Same problem.  E-file does not work for a 1065 partnership where the person filing the return is not an EIN . 

 

Am I the only one having this issue?

 

Who tests this software, a bunch of chimpanzees?

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2 Best answers
Expert Alumni
Mar 15, 2020 10:44:40 AM

I used these steps to clear the error for the designated partnership representative in the Token 618520 tax return:

  1. Open the tax return in TurboTax Business;
  2. Go to Forms mode (icon top right in blue bar);
  3. Find the “Information Wks” in the left column (should be first form listed);
  4. Scroll down to Part V and check the box for Partnership Representative (PR);
  5. Find the “Form 1065 p1-3 (Not Done)" form in the left column (3rd form listed);
  6. Scroll to the very bottom and find the Designation of Partnership Representative section;
  7. Enter the address only in the fields shaded red just under your name.

After that, no errors reported for this issue in the tax return I opened.

Level 2
Feb 25, 2021 4:08:16 PM

Resolved the problem by electing out of the Centralized Partnership Audit Regime. It then is not necessary to designate a Partnership Representative.

 

24 Replies
Expert Alumni
Mar 2, 2020 6:41:00 AM

It would be helpful to have a TurboTax ".tax2019" file that is experiencing this issue.  You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

 

On your menu bar at the very top, click “Online” and then “Send Tax File to Agent”.  When you click to send, you will get a pop-up with a token number.  Reply with the token number and I’ll be able to open a TurboTax tax return with your numbers but not your personal information.  That may help diagnose the issue.

 

Note that if you are eligible to elect out of the Centralized Partnership Audit Regime, it is not necessary to designate a Partnership Representative.  According to the IRS Instructions for Form 1065, on page 11 of the PDF at this link:

 

"A partnership is an eligible partnership in the tax year if it has 100 or fewer eligible partners. Eligible partners are individuals, C corporations, S corporations, foreign entities that would be C corporations if they were domestic entities, and estates of deceased partners."

New Member
Mar 14, 2020 4:41:44 PM

I am having the same issue with my Partnership 2020 return now.  Did you figure out the work around?

Level 2
Mar 15, 2020 7:02:13 AM

@DavidS127 token # 618520.  Applied all updates, it says I cannot e-file because those fields are not populated.  If I fill them in, it says I cannot e-file due to errors which are those fields being populated in error.  Catch-22... 

 

@Lana7 only viable option until Intuit decides to actually admit they have a problem and fix it is to paper file your return... which had to be postmarked by 3/15 so I mailed mine yesterday.

 

I'm not holding my breath since they never fixed the problem since I reported it in March 2019...

Expert Alumni
Mar 15, 2020 10:44:40 AM

I used these steps to clear the error for the designated partnership representative in the Token 618520 tax return:

  1. Open the tax return in TurboTax Business;
  2. Go to Forms mode (icon top right in blue bar);
  3. Find the “Information Wks” in the left column (should be first form listed);
  4. Scroll down to Part V and check the box for Partnership Representative (PR);
  5. Find the “Form 1065 p1-3 (Not Done)" form in the left column (3rd form listed);
  6. Scroll to the very bottom and find the Designation of Partnership Representative section;
  7. Enter the address only in the fields shaded red just under your name.

After that, no errors reported for this issue in the tax return I opened.

New Member
Mar 15, 2020 11:31:55 AM

Thank you David.  It worked!!! I was able to file electronically today and not to worry about meeting tomorrow's paper deadline.  Really appreciate your expertise!

New Member
Jun 18, 2020 2:28:03 PM

This worked perfectly. Thank you!

Level 3
Feb 23, 2021 3:21:54 PM

I am having this same error in trying to file my 2020 taxes.  My diagnostics number is 756358

Level 2
Feb 25, 2021 3:44:17 PM

I am having the same issue. Did you get your resolved? 

Level 2
Feb 25, 2021 4:08:16 PM

Resolved the problem by electing out of the Centralized Partnership Audit Regime. It then is not necessary to designate a Partnership Representative.

 

Level 3
Feb 25, 2021 4:34:05 PM

Holy Crap!!!!!!!!  This worked!!!!!!!!!

 

I opted out of Centralized Partnership Audit Regime.  Had to search a bit to find it.  Then I had to enter the SS#s with dashes, otherwise it doesn't recognize it.

 

But I successfully filed my taxes.  Thank you Yanjun98

New Member
Mar 2, 2021 12:48:41 PM

Just invested the same six+ hours on the same issue for the second year.  Last year [2019] a 'live' contact told me the issue was New Jersey.  Questions: Why are there software issues the last two years and not earlier?  Why am I paying for 1065 e-filing for Federal and New Jersey and unable to use it? I have been a TurboTax user since the days of the 3.5 floppies that were known as MacInTax.  Please help avoid future disappointment with this part of the product.  Patrick

New Member
Mar 7, 2021 6:44:56 PM

In 2021 (for 2020 return), I tried DavidS127's solution, but it didn't work for me.  The problem was when TurboTax Business loaded last year (2019) tax file, under Business Info, Partner/Member Information somehow it put a check "This partner is not a person. It is an LLC or other business entity"  I unchecked the box, and it solved the problem

New Member
Mar 8, 2021 2:54:26 PM

Tried the previous workaround above. no luck. What I had to do, was in the step by step partner information, uncheck the box what was something like "this partner is the designated partnership representative" Then go to the "form 1065 p1-3 (not done) then enter my name address, etc in the top area which was now blank and red highlighted. the bottom red highlighted area for the designated partnership was now not visible, as before where BOTH areas were visible with the top unable to change (black type) and into that furious loop of add address then it tells me to remove it. 

New Member
Mar 8, 2021 6:40:06 PM

I unmark "This member is not a person.  It is an LLC or other business entity" for both partners, continue through and click done.  when I go back it doesn't save and it still requires the additional address, this is really frustrating.  Anyone know how to unclick the box and keep the setting?..

 

New Member
Mar 9, 2021 5:00:19 AM

Yes. Mine didn't "save" the un-check either! Here is what worked for me and I was able to e-file. Do this: Leave checked the "not a person" checked. I then selected llc partner in the drop down but that probably doesn't matter which one. Go back to the "step by setp" method and "edit" each partner. Re-do the interview about each partner and DON'T check or else UNCHECK the question (I had to un-check) .. "Is this partner the designated partnership representative"...for whichever one you checked before. There is a list of "select all that apply". That is one of the check boxes. Re-finish the interview for each partner. Go back to the forms method and now in the "designated representative section" there will be only ONE AREA to enter the name and address. That stops the endless loop.  The only thing that worked for me was editing both partners in the interview with NEITHER being a designated partnership representative. Good luck. Reply if it worked for you!

New Member
Mar 9, 2021 5:43:23 AM

Not only unchecking, I had to select "No Entity" or the first choice in the box below (I was based on memory). After that it was working for me.  Good luck

Not applicable
Mar 9, 2021 3:57:52 PM

How about a 3rd year in a row?

I have a Trust entity and it is revocable it carries my SSN.

However, in the partnership TIN, I enter by Trust TID (e.g. my SSN) in the format of an EIN (ss-sssssss).

This makes that error go away.

It is a pain as I have to relearn this step each time.

New Member
Mar 13, 2021 9:57:47 AM

Just wasted an hour on the loop.  Found this thread and boiled through all the "from memory comments" and things that did and didn't work, and did this exactly:

 

1. Click the "Business Info" Tab.  Click the "Partner/Member Information oval".  Edit each member by unchecking the "this member is not a person box", and uncheck the "the member who has been designated the partnership representative for the business" box.

 

2.  Go to "Forms" Information Wks on top left of sidebar.  Scroll down to Part V, and uncheck "Partnership Representative" Box

 

3.  Go to form 1065 1-3, scroll to the bottom of page 3.  All name/address info should be wiped out.  Enter your name, address, phone, and SSN (with dashes) in the top lines of the "Designation of Partnership Representative" area. 

 

Run your error check again and it should work.  Good luck! - Paul

New Member
Mar 16, 2021 2:41:18 PM

Hi David,

 

My partner has an EIN number but TurboTax will only allow me to enter a social security number.  Any ideas how to fix this?

Thanks,

Eric

Level 2
May 17, 2021 8:29:03 AM

Thank you David for this solution and I will try this evening. DUE DATE today, so I do not have my hopes high.

It is a VERY frustrating endless loop with this PR and entity address stuff. This seems like a very common bug so not sure why TurboTax folks do not take this as a priority.

Tax regards,

-Chris

 

New Member
May 17, 2021 8:22:43 PM

Thanks David for that information it helped me out. 

 

The only thing I did differently was I put in a random name for Corporation Name and Address (for example None). Then clicked to the on going pages and went back to "update" the S-corp.  Then I was able to "delete" the corporation name I listed.  For me once I clicked to update the S-Corp the first time the code seems buggy  so it doesn't realize nothing means to close out that portion of code.  This is just my assumption.

 

Either way your info helped so thanks!

Level 3
Jan 30, 2022 9:37:33 AM

I hit on this method myself, entering my SSN in the format of an EIN number. I could then properly leave my designation as a revocable trust (for both members of this LLC) in place, in my Form 1065.

 

This is a truly stupid bug.

Glad to see you posted this hint, too.

New Member
Feb 9, 2022 2:28:43 PM

What I have discovered is that filing an LLC, you will find that the individual members that are designated as not people (check box), if you leave that checked and in the pulldown below designate that person as an Individual (I) that gets around the problem of the PR representative loop.

Business Info tab, Partner/Member Information

Select Member Name -> Edit

Bottom checkboxes -> This member is not a person

If there is a dropdown list under that - select Individual (I)

Continue

Expert Alumni
Feb 9, 2022 2:47:13 PM

In TurboTax Business 2021 when you go through the step-by-step for partner information, regardless of whether the partner is an individual or corporation, you get this screen:

 

The top box asking for which member is being designated as the partnership representative will show up until you have designated one of the partners,  You cannot file a Form 1065 without a Representative being designated.

 

@RONMCKIE212