Trying to e-file a state tax return, and the software or page displays a message that the number of Schedule K1 forms in your return is less than 2.
There are two reasons we have seen this happen:
There was only one member in the club this year.
IRS regulations (https://www.irs.gov/instructions/i1065) state "A partnership is the relationship between two or more persons". If there were not two members in the Federal filing, the state software may give an error. Also, while the Federal tax software will send the e-file, the IRS will reject the return if there was only one member listed. If that happens, you can either file as an individual, or temporarily add a member with even a small percent of ownership during the year and then regenerate the end of year allocation and the taxes.
The club's Federal e-file has not been completed or may not have been accepted yet.
From the Taxes tab, click the GO button for the Federal tax software, and check that the e-file status shows accepted. If it does not, try the e-file again; even during tax season it may take an hour or two depending on the time of day, for a Federal return to be accepted. Once the Federal return is accepted, try the state return again.
