FormPTE-k1-e2 e-file error

Error

Pass-Through withholding is zero. Withholding is required on all second-tier pass-through entities. Withholding is also required on all owners who are a foreign C Corporation, non-resident individual, trust or estate, or other non-resident entity that 1) has a distributive share of Montana income of $1,000 or more, 2) did not elect to be included in a composite tax return, and 3) did not have a valid Form PT-AGR on file.(FormPTE-K1-E2)

Cause

Solution

In the
Organizer
, go to
States
.
Select
Montana
, then
Shareholder Information
.
For each Shareholder who has
Domestic 2nd Tier Pass-Through Entity
marked, complete the following.
In
Tax Forms
, go to
States
, then select
Montana
.
Select
Schedule K-1
, then the Shareholder's name.
On
Schedule K-1, Part 5, Line 3b
enter NONE.
Do a Full Recompute, recreate the electronic file, and resubmit the return.