ISSUE on REPORTING for SCHEDULE E , line 1a on an individual return.

[Mcfein]

The instructions to Schedule E, line 1a of an individual return inform you to enter the physical address of the rental property.  In my experience, if it is not a physical property, for example, Royalties coming from a Schedule K1, then it should rather enter the Payor's Name.  Proconnect is leaving that line blank in this case.  Even though the instructions ask you to enter the property address, in the case of something other than a rental property (ie. royalties), the IRS in my opinion is looking for the Payor's Name.  

Furthermore, for royalty EXPENSES, Proconnect is creating a statement which says Schedule E, line 19, and then it gives the address of the K1.  In this instance, it should ALSO provide the name of the Payor and NOT its address.

[BobKamman]

In my opinion IRS doesn't want anything listed there, for royalty income.  But I usually enter the states or countries where the wells/mines are located.  Why would IRS want the name of the payor?  They already have that, at least on domestic 1099 issuers.  

If leaving it blank causes a software error notification, ignore it.  

Line 1a
For rental real estate property only,
show the street address, city or town,
state, and ZIP code. If the property is located

in a foreign country, enter the city,
province or state, country, and postal
code.

[Mcfein]

Thanks for your response Bob.

This is the first tax software where I have encountered this.  Others that I have used have listed the payor's name.  

However, the other issue I have is that a statement was generated for royalty expenses coming from a K1.  In this case it only listed the address of the K1 payor.  In this instance as well, I have only encountered them showing the name of the K1 payor.  

You ask why would the IRS want the name of the payor. Well why then do they list the K1 payors on  Schedule E2?  

Just some things that I have noticed and wonder about.

Best,

Michael