LLC and Trusts

Forum|Forum|5 years ago
February 16, 2021
2 replies
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I am using TurboTax Business. I have a Partnership LLC with multiple Grantor Trust members. In past years I classified them as Disregarded Entities (DE) and used the SSN as the TIN. This year TurboTax will not accept the SSN in Schedule K-1 (Form 1065) Part II, Item H2 and tells me I need an EIN. The Trusts do not have EINs. How should these trust be classified and how should the Schedule K-1 (Form 1065) Part II, Items E, F, H2, and I1 be filled out?

A

Anonymous_

Employee

@iitzen wrote:

....The Trusts do not have EINs.....

Re H2: If the DE does not have a TIN, enter “None” in the space for the DE’s TIN.

See https://www.irs.gov/instructions/i1065#idm140377965255456

If TurboTax Business will not allow the entry, you can either ignore it (i.e., do not check the box) or do an override (which may preclude e-filing of the return).

I

iitzenAuthor

Employee

To TagTeam,

Re H2: If the DE does not have a TIN, enter “None” in the space for the DE’s TIN.

TurboTax will not accept NONE as an entry in H2 for TIN. Why not?

A

Anonymous_

Employee

@iitzen wrote:
TurboTax will not accept NONE as an entry in H2 for TIN. Why not?

If TurboTax Business will not allow the entry, you can either ignore it (i.e., do not check the box) or do an override (which may preclude e-filing of the return).

S

sophialiu7

Is Turbo Tax going to fix this problem soon? I knew people using other software allow to use responsible party's SSN for the disregarded entity who is an individual.