How to enter foreign tax and income on K-2 when don't know countries?

[janice-mcclellan]

I am preparing a partnership return.  The partnership has income from some Vanguard foreign funds. The Vanguard statement that was provided shows the percentage of income from the funds that is foreign, but it doesn't list the countries.  How do I enter this on the K-2?  I tried to use the other category code that says partner determines, but it still wants the countries.  Haven't been able 

[itonewbie]

In this case, you'd simply select RIC = Regulated Investment Company Pass-Through Amounts.  This is an exception to the general requirement of reporting in gross income.

[janice-mcclellan]

I tried that.  But Proseries  still gives an error for not entering a country.  Then I tried entering RIC and a country, just to see what Proseries would do.  It gives me an error for entering both.  I wonder if the error for not entering a company will prevent me from efiling?

[itonewbie]

You should just need RIC.  That would be used in placed of a country where the foreign tax withholding flows through from an RIC.

[itonewbie]

If it still doesn't work, can you please spell out the full diagnostic message?

[janice-mcclellan]

Sch K-2, p1-3: Pt II Sales - Desc - For proper display of country totals, please select all countries for Part II on Line 1 dropdown, even if Line 1 does not have an amount for that country.

I have RIC in the Other Category Code Section right next to it.

[itonewbie]

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@janice-mcclellan wrote:

I have RIC in the Other Category Code Section right next to it.

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I think that's where you have a problem.  Other Category is where you report 901(j) income for sanctioned countries, which I assume is not applicable to you.

What you need to choose RIC for is the source of that flow-through.  Attached are screenshots of how RIC should show up on K-2.  I use ProConnect Tax but it should work the same way for PS.

[janice-mcclellan]

Proseries won't let me enter RIC on that line.  It has a drop down next to it with a list of codes.  RIC is one of them.  I will contact Proseries support.  Thank you for your help.

[itonewbie]

NP, @janice-mcclellan.  Sorry I couldn't help you to get to the bottom of this.

[janice-mcclellan]

The Proseries technical person figured out that it was something in my software.  Had me delete the form and re-enter everything.  It worked then. Took her awhile to come up with a solution.

[TCBCPA]

Janice,

I've been fighting the same issue with the K-2 error on a partnership return. So, did you simply delete the schedule K-2, save the return, then re-enter?  Any assistance is appreciated!

Terry

[janice-mcclellan]

Actually, that didn't work.  I figured out, on Part II Section 1, Line 1 Sales enter RIC as the code and put 0 as sales.  Then you can enter Dividends on the correct line.  The error on Line 1 should go away.