Shareholders with a final k-1 in 2022 are transferring to 2023 and I am unable to delete their k-1 worksheet. How do I remove them form the 1120s return?

[kbear70]

I am unable to e-file without entering their information on the blank k-1 worksheet.

[Just-Lisa-Now-]

You cant open the K-1 worksheet and Delete it?

[IRonMaN]

It's a problem that seems to be popping up more and more this tax season.  For the one I had, I left the former shareholder's K-1 in the software with zero percent ownership.  If you catch it early you could make a copy of the prior year return, delete the former shareholders, adjust the percentage of current shareholders and re-transfer the return.  But that is a lot of extra work if you have the current year return basically done already.

@IntuitGabi  since there have been a number of posts about this issue this year, is this on anybody's radar at ProSeries?

[IRonMaN]

@Just-Lisa-Now-  - no, you can't.  The issue has been around for at least a couple of years but seems to be a lot more common this year.

[IntuitGabi]

We'll do some research on this. Thanks @IRonMaN @Just-Lisa-Now- @kbear70 

[pweymouth13]

Thank you  I have the same issue

[IntuitGabi]

In the meantime, @kbear70 @pweymouth13 have you tried permanently deleting the partner/shareholder from your return? Scroll to the bottom of this help article to the section Deleting or removing a Schedule K-1 Worksheet from a 1065 or 1120S return. 

[pweymouth13]

Yes I have tried this with no success.

[kbear70]

ProSeries was able to guide me through removing the Schedule K-1 for the former shareholders. I had removed the shareholder information in the K-1 worksheet but it was still showing errors because the K-1 was not able to be deleted.  My shareholder count was still at 2 etc. They had me go to the k-1 worksheet of the nonexistent shareholder, click on “quickzoom” to the Sched K-1. This brought up an untitled K-1, right click in the middle of the panel containing the check boxes for Final & amended K-1 (under the tax year information). A drop down box appeared and the top choice was “remove K-1 Untitled”. All info associated with this K-1 was deleted and I was able to e-file the extension and will be able to e-file the return without entering shareholder info with 0 ownership.

[IntuitGabi]

As we investigate this, the workaround at this time is remove the whole K1 worksheet and rekey the partners. 

[pweymouth13]

Followed those steps but did not work for me.  Still ended up with errors on K-1 worksheet.  Will file with the former shareholders showing 0 ownership interest and 0 shares.

[IntuitGabi]

Let us know if this helps @pweymouth13 

Steps to delete K-1 Worksheet
1. Click on Sch K-1 Wks on the forms bar on the left
2. Click Forms menu button
3. Click "Remove Sch K-1 Wks"
3. Click Yes

[IRonMaN]

That doesn't work.  I tried e-filing an extension and I get an error message that "the schedule K-1 worksheet address is invalid.  The entry must begin with either a letter or a number".  When I checked on the K-1 I found it is a case of another phantom K-1 issue causing the error.  I deleted the K-1 worksheet and just as quick as it is gone the phantom returns.  I am having a priest stop by later to see if an exorcism does any good.  This is unbelievable nonsense just to file an extension.

[pweymouth13]

No did not work

[IntuitGabi]

@pweymouth13 @IRonMaN 

Update to remove errors: 

1. To remove the errors, instead of removing the entries on the Sch K-1 Wks, go to the forms menu, select Schedule K-1. The window that pops up will list "untitled" for all of the prior year K-1s. 


2. Open each "untitled" Schedule K-1




3. Select to remove that form.  When all "untitled" Schedule K-1s are removed the errors requiring an entry on the Sch K-1 Wks will be gone, however, there may still be an error for the percentage of ownership not totaling 100%".



Let us know if this works for you. 

[IRonMaN]

@IntuitGabi - that worked for the return that I had issues filing an extension for yesterday and that return did not have any data in it yet.  I tried that on the return that I had e-filed a week or two ago that I had left the former shareholder as zero and when I attempted to fix it with the suggested fix, it still left the phantom of the opera lurking in the return.

[TMS Tax Lady]

Removing the Untitled K-1 worksheet does not work.  What is another way to get the k-1s to be correct to the owners that carried from prior year?  In 2022, one shareholder was a final K-1, but he system is still looking for an additional owner???

[dsocpa]

Exact same issue last year and same this year.  I was able to file an extension surprisingly but I am now ready to file the return and have 12 errors for the 2 shareholders who were bought out last year.  I've tried all the recommendations and none have worked.  Am I going to have to re-enter the return?

[dsocpa]

FINALLY!!  Yes, this worked.  Thank you.

[dsocpa]

 I think the key is to remove the phantom k-1's from the list not the K-1 wks as originally suggested.