IL1120B-2700-4 e-file error

Error message

If the partner or shareholder is a disregarded entity for federal income tax purposes (ex: grantor trust, single member LLC, etc), then the owner of the disregarded entity s information and designation should be entered as the partner or shareholder for purposes of the schedule B. Example, if the partner or shareholder is a grantor trust and is owned by an individual, then the partner or shareholder should be designated as an I for individual. This will help to insure the proper amount of pass-through withholding will be calculated for nonresident partners and shareholders. (IL1120-2700B-4) 

Solution

Go to
Tax Forms
States
Illinois
Sch B-Partner Identification
Schedule B
Page 2
Sch B detail link
.
Any partner that has a code A, C, M, N, P, or S in Column B can't have an SSN entered in Column C. Make sure Column C is blank for that partner.
If a partner is designated as a
Trust
but an SSN has been entered rather than an EIN, you can do 1 of the following:
Enter an FEIN.
Change the entity type to
Grantor Trust
, which Illinois treats as individuals.
Do a full recompute, recreate the e-file, then resubmit the return.