Below are the instructions for ProSeries with regard to completing K-2 & K3.How do I generate the K2 / K3? Open the Schedule K-2 Page 1.Complete Questions A, B and C.Complete Parts I through XI as needed.For Partnerships: On the Schedule K-1 Worksheet check the boxes for each partner under Information for Schedule K-2/K-3 Reporting.For S-Corporations: On the Schedule K-1 Worksheet check the box for each shareholder under Information for Sch K-2.#3 - Complete Parts I through XI as needed is potentially a large amount of manual work even if there is no foreign activity.Lacerte has instructions to check a box if there is no foreign activity and Lacerte will populate the U.S. activity automatically on K-2 and K-3. Will ProSeries also do this, or do we manually have to enter the U.S. activity on all the pages?

Level 2

Question

K-2 & K-3 for 1065 & 1120S in ProSeries - Automatically enter the U.S. income from the return?

Forum|Forum|3 years ago
January 20, 2023
3 replies
24 views

Below are the instructions for ProSeries with regard to completing K-2 & K3.

How do I generate the K2 / K3?
1. Open the Schedule K-2 Page 1.
2. Complete Questions A, B and C.
3. Complete Parts I through XI as needed.
4. For Partnerships: On the Schedule K-1 Worksheet check the boxes for each partner under Information for Schedule K-2/K-3 Reporting.
5. For S-Corporations: On the Schedule K-1 Worksheet check the box for each shareholder under Information for Sch K-2.

#3 - Complete Parts I through XI as needed is potentially a large amount of manual work even if there is no foreign activity.

Lacerte has instructions to check a box if there is no foreign activity and Lacerte will populate the U.S. activity automatically on K-2 and K-3. Will ProSeries also do this, or do we manually have to enter the U.S. activity on all the pages?

ProSeries Professional

This topic has been closed for replies.

D

Dusty2

Level 6

@IntuitAngela_13 can you answer this?

IRonMaN

Level 15

I see you now have Angela on speed dial 😁

Slava Ukraini!

D

Dusty2

Level 6

I heard that her job was in danger because she was not keeping busy enough. I thought I would help her out.

Either that or she is the only one I know of to report problems to....

Dusty

A

Anonymous

HI @MDCPA
I received some details on this topic:

When the box that you are referring to in Lacerte is checked, the Lacerte program will carry amounts from the return to Part II of Schedules K-2 and K-3 only.
ProSeries does not currently have this feature.

Depending on each entity’s specific filing requirements for Schedules K-2 and K-3, ProSeries users can activate and complete the various parts of Schedules K-2 and K-3 as needed.

When Part X of the Form 1065 Schedules K-2 and K-3 is activated in ProSeries, the program will carry amounts from the return to the Total column of Schedules K-2 and K-3, Part X, as indicated by the cross-references for those fields.

Let me know if you have additional questions and I'll do my best to get more information.

M

MDCPAAuthor

Level 2

Thank you for your response IntutiGabiU. It is disheartening the Lacerte has this capability and ProSeries does not. Seems like it would be a simple "copy/paste" from the return into the K-2 & K-3 for the software. Seems like a very big gap that would be great for ProSeries to correct.

For context, it now appears the K-2 and K-3 are required whether or not the company has foreign source assets or income (i.e. U.S. income only). There are a bunch of hurdles a preparer can jump through to try to get an exception but seems like the path of least resistance is to just provide the K-2 & K-3 with the U.S. income from the return. A ProSeries checkbox like Lacerte and probably others would be extremely helpful in meeting this requirement.

L

linduca

Level 4

I believe the ProSeries guidance on how to enter a K-3 in the individual returns has an erroneous reference for Line I through O. It shows Section 1 but should be section 2 from what I can tell...

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