Diagnostic: 41023 - "Schedule E. The name of a passthrough entity is missing on line 28..." in a 1040 return using interview forms.

​The video below explains how to clear Diagnostic 41023 "The name of a passthrough entity is missing..." in a 1040 return using CCH® ProSystem fx® Tax or CCH® Global fx Tax.

Full Diagnostic Text

"Schedule E. The name of a passthrough entity is missing on line 28. Please check your entries on federal Interview Form K-1 Box 31, IRS K-1(1065) Box 46 and IRS K-1(1120S) Box 45 and enter the missing name; or delete the entity. (41023)"


Resolution

This diagnostic indicates that there is an entity that does not have a passthrough name.
  1. Navigate to the Federal Schedule E - Supplemental Income and Loss, Page 2.
    • With Line 28(a) - Name selected, go to Forms > Expand (or double-click the line) to expand into Form K-1 Information window.
      • Using ​​Next Sheet and Previous Sheet (located on the tool bar), search for blank sheets.
        • Once the blank sheet is found, Go to Edit > Delete > Delete Entity to delete out the blank record.
  2. Repeat until all diagnostics are cleared.
  3. Calculate the return.

If the diagnostic is still present, do the following:

  1. Go to Interview Form IRS K-1 1065 - Schedule K-1 (1065) or IRS K-1 1120S - Schedule K-1 (1120S).
    • From the top menu bar, select Forms > New Entity > New.
      • In the New entity number field, enter the incorrect entity number showing in your diagnostic.
        • Once you are on the blank sheet, input an amount in one of the fields.
  2. Calculate the return.
  3. Go to Edit > Delete > Delete Entity.
  4. Repeat until all diagnostics are cleared.
  5. Calculate the return.
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