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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 IRS 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:

  1. From within your TaxAct 1065 return (Online or Desktop), click K-1 Wizard, then click Continue. On smaller devices, click in the upper left-hand corner, then click K-1 Wizard.
  2. Click + Add Schedule K-1 to create a new copy of the form or click Edit to review a form already created.
  3. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
  4. On the screen titled Partner - Type of Partner, select the appropriate entity type for this partner from the Partner type drop-down, then click Continue.
  5. On the screen titled Partner - Identification Number, enter/verify/modify the partner's identification number (either SSN, ITIN, or EIN), then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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