Error when trying to efile 2021 business taxes due to designation of partnership representative

[janefuhrman]

It won't allow me to file without filling out PR as entity section or not filling out PR as entity section.

[AliciaP1]

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.

[janefuhrman]

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.

[AliciaP1]

Within your partnership tax return if you follow these steps you can change the information:

1. Under the Business Info tab choose the sub-tab Partner/Member Information
2. Click Edit next to the partner you want to update.
3. Verify the Enter Partner/Member Information page is correct - the bottom of this page is where you would un-check the box that the member is not a person
4. Click Continue
5. Continue through the questions until you get to the page I included in the screenshot above, Tell Us More About This Member
6. If this member is the PR , choose the box; if not, click the other boxes if they are correct and Continue

Repeat these steps for all the partners and only choose one partner to be the PR.

[janefuhrman]

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.

[robriordan]

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).

[AliciaP1]

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. 

1. From the menu, select Send Tax File to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click Send and then you will get a Token number. 
3. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

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.

@janefuhrman

@robriordan

[robriordan]

922026

[AliciaP1]

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.

@robriordan

[robriordan]

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.

[janefuhrman]

922183

[AliciaP1]

@robriordan

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.

[AliciaP1]

@janefuhrman

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.

[robriordan]

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.

[robriordan]

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.....

https://ttlc.intuit.com/community/taxes/discussion/efiling-2020-turbotax-business-software-error-due...