FORM OR-21

[2BB]

2022 LACERTE:  Oregon Form OR 21 is not generating in the partnership module if one of the partners is a grantor trust (disregarded entity taxed as an individual).  The module generates error code #57715.  However, see FAQ #7 at https://www.oregon.gov/dor/programs/businesses/Pages/Pass-Through-Entity-Elective-Tax.aspx indicating that a grantor trust is a qualified member of an eligible PTE.

Customer support indicated the documented solution was to change the "type of entity" to "fiduciary" at input Screen 7 which will allow the Oregon Form OR-21 to generate. This change, however, will cause Item H2 at Schedule K-1, to incorrectly populate. Customer support indicated the Oregon Form OR-21 should be efiled with input Screen 7 set as "fiduciary", then the federal return should be efiled after changing input Screen 7 back to "disregarded entity".

This is an unacceptable solution.  We should not have to change an input between filing a federal and state return.  This is going to lead to errors for what would seem to be a simple programming fix (i.e., allow Oregon Form OR-21 to populate when a partner is a disregarded entity at Screen 7 and the "partner type for disregarded entity" is set to "individual" at input screen 32.1