Schedule K-1 Partner entity type

[Jul21720]

Client recently created an LLC as the only member, the IRS instructed him to file a 1065 (instead of a Schedule C).  When I entered the partner's information, I used DE as a Partner entity and entered the partner's SS# and name, but I keep getting an error from the program, then decided to switch to "I" for individual but the error is still there. What am I doing wrong? I need to move on since the 1065 must be filed by 03/15/2022. Please help!

[IRonMaN · Accepted solution]

The IRS doesn't tend to tell single member entities to become a partnership since you can't be a partnership with only one partner.  File the business as a schedule C.  If someone messed up in an application for a tax ID number, deal with any potential IRS notices later if any actually show up.

[taxshack]

IronMan is 100% correct.  Don't let the letter dictate the form.  If there is no partner it isn't a partnership.

[Jul21720]

IRonMan and taxshack

Thanks so much for your prompt response, filing Schedule C will bypass the 03/15/2022 deadline!

[IRonMaN]

You betcha!