K-2 Input Form

[nancy2]

The K-2 input form in Pro Series seems to be doing some wonky things.  For instance, under Part II, Line 1, Sales.  I have nothing to enter here.  And yet, I am getting an error message on Line 1A.  Looking for a country designation.  Of course, the little message that pops up doesn't stay up long enough to read and then it is gone.  

Additionally,  on the remaining income lines, when I enter the US code and amounts, proceed to another page and come back.....  the US code has disappeared.  

Am I misunderstanding how to enter some of this information?  I don't see much in the way of instructions on how to enter this information into the ProSeries worksheets.  Or, is it just not working properly?

[Samantha_at_Intuit · Accepted solution]

The error message you are getting on Sch. K-2, Part II, Section 1, Line 1A states “For proper display of country totals, please select all countries for Part II on the Line 1 dropdown, even if Line 1 does not have a value for that country”.

To properly display the country totals on Part II, Section 1, Line 24, you must select all countries that have information to report in Part II on the Line 1 dropdowns. Once country selections are made on Line 1, the program will carry those same country selections to the remaining lines in Part II, Section 1, so that you can enter gross income amounts on the applicable lines. If there is no information to report for a particular line, then you can simply leave the amount fields blank for that line. 

[nancy2]

Thank you!  I have more questions I will post under a new thread.

[jb4775]

Regarding entry on K-2, there is no country code offered for RICs (regulated investment companies).  Will this be in a future release or is there a method for handling this?  I have partnership returns with lots of partners and cannot clear this error from the K-2 or K-3s.  Please advise.

[nancy2]

I ended up just turning off the K-2 in Proseries and preparing them myself using the pdf forms on the IRS website.  Yes, it was a PIA.  But I couldn't figure out how to get rid of the error messages either in ProSeries.  Just a warning though, if you do it like I did, you will need to print the IRS forms in a lower definition. Otherwise the file will be too big to file electronically with ProSeries.  You will be able to attach them, but when you try to file it won't go.  

[jb4775]

That isn't really a workable option in this case as I have 145 partners in this return.  I know I will have to print and send in the K-3 schedules, which will be too large to attach via pdf, but was hoping to resolve this error so the forms are correct when printed and so the return can be e-filed.  If I enter an arbitrary country in the drop-down list, all errors resolve, but RIC is not in the country list even though this should be a valid entry and this would mean correcting all 145 K-3 forms by hand before mailing.  I don't mind a delay if I know this will be fixed in the next few months as the return is already on extension.

[nancy2]

Good luck!   Even though a ProSeries employee did respond to one of my questions on the K-2/K-3, they never responded to specific questions.  I don't know that I would count on them to get it fixed.  Yes, I had the RIC situation also.  ProSeries give no option for that.  The other issue I had was that I had more countries than could be added and never got an answer on what to do with that either.  

Possibly you could get it all done up to a point where you could print them and then make whatever changes you have manually before filing.  And then delete what is in the program so that you could efile the return.  Good luck.  It has certainly been a **bleep** show.  

[DTNY07]

I didn't have any K-2s to prepare until a week ago.  Two LLC returns and one S corp return (All from the same client, he has 4 entities with me and his personal.)   What a pain this is.  i totally butchered the first  LLC one.  That was my fault.  The second one was fine, but that's because the entity only received one K-1 that had K-3 information.  Now, the third one has more than a few K-1s received with K-3s.  Ugh