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Schedule K-1 Partner entity type

Jul21720
Level 3

Client recently created an LLC as the only member, the IRS instructed him to file a 1065 (instead of a Schedule C).  When I entered the partner's information, I used DE as a Partner entity and entered the partner's SS# and name, but I keep getting an error from the program, then decided to switch to "I" for individual but the error is still there. What am I doing wrong? I need to move on since the 1065 must be filed by 03/15/2022. Please help!

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IRonMaN
Level 15

The IRS doesn't tend to tell single member entities to become a partnership since you can't be a partnership with only one partner.  File the business as a schedule C.  If someone messed up in an application for a tax ID number, deal with any potential IRS notices later if any actually show up.


Ukraine - hang in there

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4 Comments 4
IRonMaN
Level 15

The IRS doesn't tend to tell single member entities to become a partnership since you can't be a partnership with only one partner.  File the business as a schedule C.  If someone messed up in an application for a tax ID number, deal with any potential IRS notices later if any actually show up.


Ukraine - hang in there
taxshack
Level 4

IronMan is 100% correct.  Don't let the letter dictate the form.  If there is no partner it isn't a partnership.

Preparing taxes is not my life, but my life is amazing because I prepare taxes.
Jul21720
Level 3

IRonMan and taxshack

Thanks so much for your prompt response, filing Schedule C will bypass the 03/15/2022 deadline!

IRonMaN
Level 15

You betcha!


Ukraine - hang in there
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