Tax Year 2022

2022 Method 1

1. Go to Partners > Schedule K-2 - Distributive Share Items - International Parts I-V worksheet.
2. Expand Section 1 - Schedule K-2 General Information and Part I.
3. In line 5 - Print a blank page 1 Schedule K-2/K-3 when no other input for the Schedule K-2 exists, select the checkbox.
   • Interview Form Schedule K-2 > KF-1, Box 34.
4. Calculate the return.

2022 Method 2 

1. Go to General > Return Options worksheet.
2. Expand Section 1 - Processing Options.
3. In line 72 - Prepare all pages of the Schedule K-2 and K-3, even if not applicable, select from available options.
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4. Calculate the return.

Notes

• Method 2 has a global setting:
  • ProSystem fx® Tax Return Group default: Office Manager > Configure Applications > Tax Preparation > 1065 Options > "Prepare all pages of Schedules K-2/K-3, even if not applicable"
  • Axcess™ Tax Return Configuration Set default: Dashboard > Application Links > Tax > Configuration > Return Configuration Sets > 1065/Partnership Options > "Prepare all pages of Schedules K-2/K-3"

Tax Year 2021

There is not currently a 'one-stop' option to generate both the Sch K-2 and the K-3(s) along with a 2021 return when the passthrough does not have to report any "items of international relevance ." 

2021 Method 1
As a workaround, we can prepare a relatively blank K-2 and K-3s by making a Schedule K-2, Part II, Section 1 - Income, Row Code input with a zero in U.S. Source.

1. Go to Partners > Schedule K-2 - Distributive Share Items - International Parts I-V worksheet.
2. Expand Section 2 - Schedule K-2 Part II Section 1 Income.
3. Select Detail (Interview Form Schedule K-2 > KF-2, boxes 30, 32, and 33).
4. In Line 1 - Row code, select F4 Lookup value and choose an option from the list.
5. The selection is arbitrary as the input will not flow anywhere, but we can even select Reserved options 9 and 22-24.
6. In Line 5 - Country Code, select OC.
7. In Line 7 - U.S. Source, input a zero.
8. Calculate the return.

Note

• This method selects Yes to the first two boxes of K-2, page 1, item C and prepares Schedule K-2, pages 1-5, so to complete parts 1, 2 and 3.

2021 Method 2
Input is available designed to force prepare only the Schedule K-3 for all partners or specific partners:

1. Go to Partners > General Options worksheet.
2. Expand Section 1 - Schedules K-1 and K-3 Print Options.
3. In Line 3 (Interview Form 5, box 35) - Code to produce the Schedule K-3, select F4 Lookup Value and choose from the following two options:
4. Produce for all partners (default).
5. Produce for only selected partners.
6. Go to Partners > Partner Information worksheet (or if selecting to produce for all partners, skip to step 8).
7. Select Detail.
8. Expand Section 4 - Other Payments / Printing Percentage Overrides / Other Options.
9. In Line 17 (Interview Form K-2, boxes 50-66 and 164-196) - Produce the Schedule K-3, select Yes or No.
10. Calculate the return.

Note

• Schedule K-2 will not be prepared using 2021 method 2.