17593: 1065 - Entity Name Change

A partnership changing its name does not need to file a form with the IRS prior to filing a tax return for the year in which the name change occurs. The IRS states that: 

"If you are filing a current year Form 1065, mark the appropriate name change box on the form: Page 1, Line G, Box 3. If you have already filed your return for the current year, write to us at the address where you filed your return to inform us of the name change. In addition: The notification must be signed by a partner of the business."

In Drake Tax, enter the partnership's new legal name in the Partnership's legal name field on screen 1 and check the box Name change under the General Information section near the bottom left. 

When this box is marked, the IRS will recognize that the name is different than in prior years and will update the name control in their database for future filings. 

Extensions

If filing an extension for a 1065 return that changed its name during the year, the 7004 extension form must be filed using the name that is on file with the IRS and not the new name that will be used going forward. You can still enter the new name on screen 1 of the return and mark the Name change box, however, the previous name must be entered on the 7004 screen in the Prior-year legal name of entity field. This will allow Drake to generate the required name control for the e-filed extension.

Note: If the Name change box is marked on screen 1, and the extension is being filed, EF message 1390 will generate until the prior name is entered on screen 7004. This will prevent IRS reject R0000-901-01.