IL1120B-2700-4 e-file error

Error

If the partner or shareholder is a disregarded entity for federal income tax purposes (ex: grantor trust, single member LLC, etc), then the owner of the disregarded entity s information and designation should be entered as the partner or shareholder for purposes of the schedule B. Example, if the partner or shareholder is a grantor trust and is owned by an individual, then the partner or shareholder should be designated as an I for individual. This will help to insure the proper amount of pass-through withholding will be calculated for nonresident partners and shareholders. (IL1120-2700B-4)

Cause

On Schedule B, Page 2, any partner that has a code A, C, M, N, P, or S under Column B can't have an SSN entered under Column C.

Solution

  1. In the Organizer, select
    Partner Information
    .
  2. Select
    Partner
    by Partner Data then review each partner in Partner Information.
  3. If the partner is a Trust, format the SSN\EIN field as an EIN, where the hyphen is in the 3rd position.
  4. If the partner only has a SSN, change the Type of entity to
    Grantor trust
    , which Illinois treats as individuals.
  5. Do a full recompute, recreate the electronic file, and resubmit the return.
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