Why can't I check the "no" box on the 2019 Form 1065, page 2, question 4?

[Pat W]

I've got a new client who set up their partnership in December 2019. They haven't generated any revenue yet, but they've had expenses in both 2019 and 2020, so we need to file back returns. Page 2, question 4c is "no" (Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return). But if I check "no", it gives me a red error. The only way to fix it is to check yes. What am I missing? Thanks!

[Just-Lisa-Now- · Accepted solution]

If you run through Review when you show the red error, does it give you anymore information about it?

[Pat W]

Yes - it tells me that we must complete Schedule L. But I've done that and the error didn't go away. The only items on the balance sheet are a loan from one of the partners and the capital accounts. I entered the special allocation code on the Partners' Liabilities Smart Worksheet, but the red error still exists.

[Pat W]

Ooh, I got it to work! On the Schedule L, there were no assets, just liabilities and partners' capital. When I put a zero in the balance sheet for cash, it went away. I guess it didn't like "total assets" being blank, while total liabilities + capital was zero, lol. One of those "duh" moments, for sure. Thank you - your suggestion got me going in the right direction!!

[Just-Lisa-Now-]

Youre welcome!