If you are receiving a red alert about inconsistent ID numbers, it is because the identification number entered for one (or more) of the partners does not match the entity type selected for that partner.
For an Individual (or Nominee Individual) Partner, enter the partner's Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). For all other entity types, enter the partner's EIN (Employer Identification Number). However, if a partner is an Individual Retirement Arrangement (IRA), enter the identification number of the custodian of the IRA; do not enter the SSN of the person for whom the IRA is maintained.
Foreign Partners without a U.S. Taxpayer Identification Number should be notified by the partnership of the necessity of obtaining a U.S. identifying number. Certain aliens who are not eligible to obtain SSNs can apply for an ITIN on Form W-7 Application for IRA Individual Taxpayer Identification Number
If a single member limited liability company (LLC) owns an interest in the partnership, and the LLC is treated as a Disregarded Entity for federal income tax purposes, enter the owner's identifying number in item E and the owner's name and address in item F.
To review or modify the partner's entity type or identification number on Schedule K-1:
- From within your TaxAct® return (Online or Desktop), click K-1 Wizard. On smaller devices, click the menu icon in the upper left-hand corner, then select K-1 Wizard
- Click Continue once to begin entering partner information
- Select Quick Entry or Step-by-Step Guidance
- If you select Quick Entry, scroll down to Part II to enter/verify/modify the partner type and/or partner's identification number, as applicable. Close the Quick Entry window when done.
- If you select Step-by-Step Guidance, on the screen titled Partner - Type of Partner, verify that the appropriate entity type has been selected for this partner, then click Continue
- On the following screen, enter/verify/modify the partner's identification number (either SSN, ITIN, or EIN), then click Continue to save the changes.