... or am I just going crazy?

[JJStephens]

Earlier this week I thought I saw a blurb in an IRS e-newsletter stating they had discovered coding errors in their 1120-S software and recommended delaying filing extended returns until sometime in June. I was in a rush to get something done and decided to read it more carefully when I had more time.

I've spent two days trying to find that email. Nothing. Did anyone else see it ... or am I just losing it?

[Lee B]

Yes, I saw it. It was related to entries -  code Z line 20 of the K -1 s.

[JJStephens]

Thanks! Do you recall when that e-newsletter arrived? I'd like to dig it out and read up on it. I couldn't find anything online.

[JJStephens]

I found it. It's a 1065 problem, not 1120-S. I was searching for the wrong thing!

Okay, I guess that still means I'm crazy ... just in a different way than I originally feared. Deep sigh.

[Lee B]

It took me a while to find the notice too:

"5.  Error identified in Form 1065, Schedule K-1 programming

The IRS notifies tax professionals of a programming error impacting e-filers of Form 1065, Schedule K-1, Line 20 for 2023. The error blocked e-filed partnership returns from using Code ZZ. The IRS encourages e-filers to extend the filing of their Form 1065 returns and defer until June 16, by which the error is expected to be corrected. "

[jklcpa]

In case anyone else wants to see it:

https://www.irs.gov/businesses/mef-filing-error-with-form-1065-schedule-k-1-line-20-code-zz#:~:text=The Partners Instructions to Schedule,of Box 20 the partner

 

Q. I receive an error in Form 1065, Schedule K-1, Line 20, code ZZ, when I try to electronically file the partnership return. How can I fix the error? (added March 21, 2024)

A. The Partners Instructions to Schedule K-1 of Form 1065 for 2023 provide that Code ZZ “Other” in Box 20 contains “Any other information you may need to file your return not shown elsewhere on Schedule K-1.” If a partner receives a 2023 Schedule K-1 from a partnership with information in Code ZZ of Box 20 the partner should follow the Partner’s Schedule K-1 instructions in reporting this information on their return. There was a programming error impacting e-filers of Form 1065 for 2023 that blocked e-filed partnership returns from using Code ZZ. The IRS encourages e-filers to extend the filing of their Form 1065 returns and defer until June 16, 2024, when we estimate that the Code ZZ issue will be fixed and Code ZZ can be properly e-filed in Box 20 of Schedules K and K-1.

Page Last Reviewed or Updated: 21-Mar-2024

 

Edited April 4, 2024 by jklcpa
Added the contents of the IRS page

[mcb39]

My Partnerships are already on extension, but I don't want to wait until June 16 to file.  How do I get my Partners to understand?

[joanmcq]

Its either wait or file on paper.  But I don't think you can file p'ships on paper anymore?

If you don't need code ZZ then I guess its fine?

[mcb39]

Well, I won't have time to get them done before the 15th.  They have been on extension since before the 15th of March.  Now to put all of the partners on extension.  We bit off more than we could chew this year with so many new clients.

[GLJEANNE]

I don't do any 1065s, but I wonder if this has anything to do with why so many K1s seem to be late this year.  I have an annoying number of extensions that are just waiting K1s.

[WITAXLADY]

Well MCB!!

that is a good problem to have - rather than the reverse!!

I have 90 to do yet  befoe I hit the dropoff date of 2/22/24 -

Best,

D/WI

[mcb39]

4 hours ago, WITAXLADY said:

Well MCB!!

that is a good problem to have - rather than the reverse!!

I have 90 to do yet  befoe I hit the dropoff date of 2/22/24 -

Best,

D/WI

Thanks Dar....this is the craziest year ever.  We have been working such long days and are still spinning our wheels.  Try to catch your breath.  Thanks for the contact.  If I get any more farms, I will send them to you.

MCB