50201

[#1]

The following diagnostic is generating: E-FILE Sch K-1 #1 For efile purposes, credits with a code Z may not be passed out to beneficiaris on Sch K-1, Box `3. Returns distributing other credits to one or more beneficiaries must be filed on paper.

[cynvas159]

This is a 1041 foduciary return that is  engaged in two businesses.  None of the income is passive.  This is the employer social security credit for taxes paid on tip earnings of servers. 

[sjrcpa]

"None of the income is passive"

That doesn't matter. It's telling you that Code 13Z credits = paper filing.