It might be that you're missing a checkbox. In order to identify a partner as the Partnership Representative (PR) you have to check the box for the partner here:
You also have to complete the specifics about the PR on the following page.
How do you get that screen to appear? I've been filling taxes for this company for years and it now has all members listed as not a person and I can't get it take a change to that screen.
Within your partnership tax return if you follow these steps you can change the information:
Repeat these steps for all the partners and only choose one partner to be the PR.
Appreciate the attempted assistance. I uncheck each partner box for the member "is not a person" save and move forward. After that page is complete I check and TurboTax has rechecked that each member "is not a person" for me. So, I'm stuck in a infinite loop due to their bug.
Thanks for again for the assistance. I wished it had worked.
I too am having this issue. We are doing a simple Form 1065 Partnership return where the two partners are Revocable Trusts. Because of this I am required to enter a PR name and address, but the program will not allow me to e-file because the SS# used is the same for the trust and the member. This is definitely a bug as I have been using Turbo tax for 16 years to file these exact returns (nothing has changed during that time).
It would be helpful to have a TurboTax ".tax2021" 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:
At the top menu in the black line at the top of the page go to Online.
We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.
When you have partners that are not a person, you are required to designate an individual as the representative in case the IRS needs to contact a person to discuss the return. This cannot be avoided.
When you get to the Federal review you can input the information for the individual, including an address and phone number, through the review process.
Sorry, but you are not understanding the issue. When I do what you suggested, I get an error message stating that because the ss# are the same I cannot list a PR. If I leave it blank, I get an error message. If I fill it in, I get an error message. It does not matter what box i check on the solution you mentioned earlier. Thanks.
When you go through the Federal Review process on your 1065 and complete the individual's name, address and phone number on the form shown on the review screen, it does not ask for a SS#. As long as you leave the check box with the entity that the individual you are entering is representing, your return should then clear the review with no errors.
When you have partners that are not a person, you are required to designate an individual as the representative in case the IRS needs to contact a person to discuss the return. This cannot be avoided. Also, since your partners are also partnerships and not individuals, you should be using their EINs on the Partner/Member entry.
When you get to the Federal review you can input the information for the individual, including an address and phone number, through the review process.
Here is the issue in more detail:
The partner's tax return is filed under their revocable trust. So, if you are in "Business Info" "Partner/Member Information" and you edit one of the partners, you will see that the partner name is an individual with the initials "RLT" added to the end to designate that the partner is a revocable trust. The partner is not a person, so the box is checked "This partner is not a person. It is an LLC or other business entity" Under the drop down box selection "R - Revocable Trust (See Help)" is selected. This is done for both partners. The SS# is used for both partners because it is a Revocable Trust.
This is how we have filed this tax return using Turbo Tax for many years without an issue.
When you go to e-file, Turbo Tax requires you to "Check Entries" or to "File by Mail"
When you select "Check Entries", it brings you to the "Designation of Partnership Representative" page and requires you to fill in an individual's name, which is the name of the partner.
You are then offered the option to "Transmit Returns Now", which when selected BRINGS YOU BACK to the "Check Entries"/"File By Mail" options. The error message now changes to "Form 1065 p1-3: Designated Indiv Addr should not be entered since the taxpayer identification number of PR is a SSN."
This is the bug. You should be able to have a PR name here and not fail on this error because with a revocable trust the SSN is the same as the individual partner's.
I suspect that this is a relatively small issue for TurboTax but it is a bug and needs to be addressed so that I can file my partnership returns. I suspect more people will bring this to your attention over the next week or so. As I mentioned, this is the first year filing this way where Turbo Tax puts you in an endless loop. I'd appreciate it if you could escalate this issue to the development team so it can be addressed before these returns end up being late.
Apparently this is not a new bug, but one that already has a workaround posted. I was able to file my taxes by unchecking the box on the K1 worksheet for the designated partner representative. Turbo tax really should fix this issue.....
You're not understanding the issue. We have two individual partners who are both people. However, when I got through the Step By Step process for the partner member and uncheck the "This member is not a person. It is an LLC or other business entity." box and save it it's changing that to be marked true.
Where do I uncheck this within the forms as the step by step doesn't work.
I've used Turbo Tax business since 2005 for this business and never had this issue and am about to find a new tax package.
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:"
On the Information Worksheet, Part V, confirm that there is no SSN under the Member's information. Both the LLC Member 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.
This is an extremely frustrating flaw in the program. I enter my revocable trust as an entity that is the PR. The program claims I committed an error when I put in my individual name as the person signing for the PR. If I leave that blank, the program claims I committed an error because I DID NOT put in an individual name as the person signing for the PR. It is a circular problem that is prohibiting me from efiling. And it is of no importance which is probably why the flaw still exists. Please give me some advice. Thanks
It would be helpful to have a TurboTax ".tax2021" 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:
At the top menu in the black line at the top of the page go to Online.
We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.
This is a known error/bug in TurboTax and there is a workaround (from last year) that allowed me to file my taxes. We have already sent a ".tax2021" without resolution. You should be pointing users to the workaround instead of offering to troubleshoot this issue.
The link to the workaround was posted by me on this thread a month ago. Good luck. Rob
Confirmed that unchecking the box (PR) on the old member's K1 and checking the box (PR) on the new member to be the PR worked.