error on filing LLC return

Forum|Forum|3 years ago
February 27, 2023
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I don't know how to remedy an entry for Form 1065 p4-5 error.

The screen says "Total partners liab is not equal to total of liabilities shown on Balance sheet. Attach a reconciliation form per instructions.

I know the reason for the balance sheet error. It is because I put the Security Deposit we are holding for our tenant in Line 20. I thought I took care of this error when I filled out the Form 1065 Schedule L that popped up when I double clicked on the security deposit amount for both prior and current year. When reviewing the taxes that our accountant did last year, I am putting the security deposit amount in the exact same place as he did.

The software is asking me to attach a reconciliation per form instructions. Can anyone assist me in knowing how I am to do that? Also, is there any harm in how I double clicked and created the form that popped up when I double clicked on the security deposit amount?

All my balance sheets, income statement, capital accounts are balanced. This is the only error I have and I don't know what the form instructions are for the 1065 Turbo Tax is referring to.

Thank you for the help!

TurboTax Business Windows

Best answer by AliciaP1

It would be helpful to have a TurboTax ".tax2022" 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.

From the menu, select Send Tax File to Agent.
You will see a message explaining what the diagnostic copy is.  Click Send and then you will get a Token number.
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.

@rhondajoy125

AliciaP1Answer

It would be helpful to have a TurboTax ".tax2022" 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.

From the menu, select Send Tax File to Agent.
You will see a message explaining what the diagnostic copy is.  Click Send and then you will get a Token number.
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.

@rhondajoy125

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rhondajoy125Author

hello; thank you for your help The token number is 1083482

AliciaP1

You have an erroneous "3" entered on your balance sheet for Mortgages, notes and bonds payable due in less than 1 year that is not throwing you off. Also, an LLC cannot report Recourse Debt since the definition of an LLC protects members from being personally liable for company debts. If the partners have guaranteed the debt it should be listed as Qualified Nonrecourse Debt on the same line with Nonrecourse loans. If the debt is accrued liabilities of the company, it should be listed under Other Short-term Liabilities above the Nonrecourse loans.

To correct this in TurboTax Business you can follow these steps:

Within your tax return under the Federal Taxes tab and Balance Sheet, click Edit for Balance Sheet
Click Quick Entry
Click Done on the Enter your Assets screen and verify your ending balance
Delete the 3 entered on the Mortgages, notes and bonds payable due in less than 1 year line
Move the amount listed in the Other Liabilities section and move to the correct section as per the explanation (above)
Click Done and verify your ending balance