Suppressing the 1065 balance sheet in Lacerte

When the requirements for Form 1065, Schedule B, Question 4 are met, the balance sheet information isn't required with the return, per the Instructions for Form 1065.

In this case, the following items will be suppressed:

• Schedule L
• Schedules M-1 / M-2
• Form 1065, page 1, Item F
• Schedule K, Item L

What are the requirements for Question 4?

To meet the requirements for Form 1065, Schedule B, Question 4, the client must answer yes to all four of the following conditions:

• The partnership's total receipts for the tax year were less than $250,000.
• The partnership's total assets at the end of the tax year were less than $1 million.
• 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.
• The partnership is not filing and is not required to file Schedule M-3.

If "Yes", the partnership isn't required to complete Schedules L, M-1 and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1.

How do I answer "yes" for Question 4 in the program?

Follow these steps to indicate that Question 4 requirements are met:

1. Go to the Detail tab.
2. Select Screen 5, Other Information (Schedule B).
3. Locate the Other Information (Schedule B) section.
4. Mark the checkbox labeled "Question 4" requirements are met.
   • If you leave this field blank, the program assumes the requirements weren't met.
   • Checking this box will suppress the following items:
     • Schedule L
     • Schedules M-1 / M-2
     • Form 1065, page 1, Item F
     • Schedule K, Item L

It's possible, but not recommended, to follow the steps below without meeting the conditions of Question 4, resulting in the balance sheet information being removed from the form.

Can I still print the balance sheet information?

If you mark the checkbox labeled Question 4 requirements are met but still want to print the above items, go to Screen 25, Balance Sheet Miscellaneous. Enter a 1 in the field labeled Schedules L, M-1, and M-2: 1=force, 2=when applicable [O].