In a 1065 return, Return Note 044 is produced because the beginning of the year amounts don't balance between Schedule L, line 21, and Schedule M-2, line 1. Where can I adjust the beginning capital account amounts?
Line 21 of the balance sheet (Schedule L) refers to partner capital accounts. Entry points are located on the K1 screen in section L for each partner.
An entry on the L screen for line 21 may also affect the outcome.
Notes:
- In View/Print mode, worksheets WK_PCAR and WK_M2 may be helpful.
- Note 044 refers to both beginning and ending capital account discrepancies.