IRS Reject Code F1065-041-02 occurs when Form 1065, Schedule B, Line 2b is marked yes but no entries have been made on Schedule B-1 as required. To correct reject F1065-041-02, from the Main Menu of the tax return (Form 1065) select:
- Schedule B - Other Information
- Any individual or estate own interest of 50% or more? - Either change the selection to no, or select yes and fill in the required information when prompted.