How to resolve EF Message 0012 on a 1065 return

This message is produced when any of the partners on the return own an interest of 50% or more in the partnership.

To clear this message, in data entry, go to the B1 Schedule B-1 Ownership Information screen and complete either line 2a or 2b, as required, depending on the type of partner that holds the interests of 50% or more in the partnership.

Line 2a would be completed if a foreign or domestic corporation, partnership (including any entity treated as a partnership), or trust owns, directly or indirectly, an interest of 50% or more in profit, loss, or capital of the partnership.

Line 2b would be completed if an individual or estate owns, directly or indirectly, an interest of 50% or more in the profit, loss or capital of the partnership.

Beginning in Drake18, this information can also be entered at the top of the partner's K1 screen, in the Schedule B-1 section.

For additional guidance, see the 1065 instructions.