If Schedule B, question 4 Does This Partnership Meet All the Requirements? is answered yes, then Schedules L, M-1, and M-2 are not required to be completed and may not be printed. Per page 53 of the Form 1065 Instructions:

"Schedules L, M-1, and M-2 aren't required to be completed if the partnership answered “Yes” to question 4 of Schedule B."

Requirements

The requirements are as follows:

1. The partnership's total receipts for the tax year were less than $250,000

2. The partnership's total assets at the end of the tax year were less than $1 million

3. 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

4. The partnership is not filing and is not required to file Schedule M-3

The Schedules can be forced to print by using the Force Schedule L, M-1, M-2, & Section L box on the PRNT screen.

If the question is marked Yes when the requirements are not met, EF Message 0503 will be generated.

If the answer is No, the following items are required and will be printed with the return:

• Form 1065, page 1, item F

• Form 1065, Schedules L, M1, and M2

• Schedules K-1, item L