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

[MDCPA]

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?

[Dusty2]

@IntuitAngela_13  can you answer this?

[IRonMaN]

I see you now have Angela on speed dial 😁

[Dusty2]

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

[IRonMaN]

I notice that she has been pretty good about following up so I don't blame you for paging her.  At some point she might change her stage name here to leave_me_alone_Dusty. 😉  Evidently Lisa went back to that smoke filled lounge and said we are supposed to ask Gabi this stuff.  But you seem to get much quicker service going the route you have been traveling.

[IntuitAngela_13]

@Dusty2 

Unfortunately, this is not my wheelhouse. 

@IntuitGabi could you please forward this question to the appropriate team? Thanks!

[IntuitGabi]

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. 

[MDCPA]

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.

[beanctr72]

Do we have any updates on automatically populating the K2/K3s for 1120S returns?  I still cannot get the forms to populate as anticipated.  Originally, the form was set to be e-filable on today, but nor it's been updated to 2/14/23.  

[lisaw1]

Is anyone able to efile  the k-2/k-3 in the 1120S as of yet?  Mine say update available, but then I cant get the update.  

[linduca]

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...