My LLC has a trust as a partner. TT autofilled the trust name as an entity from years prior. When I run error check it insists I add a last and first name for this partner. If I do and run error check again it says I must remove the last and first name. Repeat.
Because this is considered an error, I cannot efile. Is there a work around?
I do not want to file by mail, especially if having this "error" means my audit defense is screwed up somehow.
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Yes, there is a work-around, as there is no ready solution within the main interview.
According to the On-Demand Guidance within TurboTax Business for the Designation of Partner Representative (right click on PR Name at the bottom of Form 1065 p1-3) --
To designate a partnership representative, either complete Part V of the Partnership Information Worksheet and check the Partnership Representative (PR) box OR check the "PR" (Partnership Representative) box for a partner on the Schedule K-1 Worksheet.
Note: If the partnership representative is an entity, complete the information for the individual that the partnership designates to act on the entity's behalf.
Because you prepare Schedule K-1 for at least one trust, you cannot opt out of the Centralized Partnership Audit Regime (Form 1065 p1-3 Line 29), which could resolve the situation.
Instead, open Forms Mode and confirm that the two forms mentioned above (Partnership Information Worksheet and Schedule K-1 Worksheet) contain the correct information.
The PR checkbox on Schedule K-1 Worksheet is in the right-hand column under the Profit/Loss percentages as "Check applicable boxes:" For the revocable TRUST, DON'T check the box saying "the member who has been designated as the partnership representative for the business."
On the Information Worksheet, Part V, confirm that there is no SSN under the Member's information. Both the Partner and PR boxes must be checked.
Do not return to the Step-by-Step section for Partner/Member Information in case this action is resetting your entries. Save your return. Close, reopen, and run Federal Review again.
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