IL1120B-2700-4 e-file error

Error

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. (IL1120-2700-4)

Cause

Solution

In the
Organizer
, select
Shareholder Information
.
Choose
Shareholder Data
, then
Shareholder Information
.
Check each shareholder's information. If the shareholder is a Trust, mark the
Format Shareholder I.D. as EIN
checkbox.
Do a Full Recompute, recreate the e-file, and resubmit the return.