CCH® ProSystem fx® Tax and CCH Axcess™ Tax: Frequently Asked Questions regarding Schedule K-2/K-3, Tax Year 2021.
- Article Type:
- Last Modified:
- CCH ProSystem fx Tax
- CCH Axcess
- CCH Axcess Tax
- Electronic filing
|'US' is not an available country code. Can I print 'US' as the Country Code on Schedule K-2 in CCH Axcess™ or CCH® ProSystem fx® Tax?||Per IRS instructions, country code 'OC' is not allowed. Entering ‘OC’ will print ‘US’ in the US Source column. Click here for more information.|
|When will electronic filing be available for returns preparing Schedule K-2 / K-3(s) with greater than 50 partners / shareholders?||
Partnership - 1065 Schedule K-2/K-3 eFile, per CCH Software News, June 24, 2022:
|Can partnership returns that have the Schedule K-2/K-3 and less than 251 partners be e-filed now?||Yes; this functionality became available on release 2021.04000 / 2021-4.0.|
|For partnership returns with greater than 250 partners, will any additional Sch K-2/K-3 be auto attached?||No: e-File diagnostic 61971 will appear to prevent electronic filing of these returns.|
|For returns that have Schedule K-2 and K-3(s) prepared can we manually attach PDFs of the schedules and e-file?||While the functionality to attach the PDFs manually is available, returns containing large PDF attachments along with Schedule K-2 and K-3(s) included in the IRS schema XML can place a substantial strain on the Electronic Filing Status System (ELF) and take longer to process, or potentially even prevent the filing of not just those returns but returns for other systems and users.|
|What is the maximum size allowed for a single PDF attachment?||The maximum size of an individual PDF attachment in any submission = 60 MB (uncompressed).|
Can I suppress the auto generated PDFs within the return?
Yes. General > Electronic Filing > General > Print Returns, Suppress autogenerated PDF for Schedule K-2 and K-3 (1065/1120S only).
Is it possible to be selective about which partners/shareholders receive a K-3? For example, if we have a partnership with only domestic activity but has one foreign partner, can the K-3 only be generated for the foreign partner and not the other domestic partners?
Yes. To print only for selected partners, navigate to Partners > General Options > Schedule K-3 Print Options and change line 3 code ‘Code to produce the Schedule K-3’ to ‘Produce for only selected partners’
To then enable for select partners, navigate to Detail, then section 4, Other Payments / Printing Percentage Overrides / Other Options > Line 17, Produce the Schedule K-3.
When will the K-1 import/export spreadsheet include K-3 line items?
|This is scheduled to be released sometime after the 4/18/2022 filing deadline.|
Is there a code or specific naming convention to use when manually attaching K-2/K-3 forms?
|If manually attaching a PDF of these schedules, we would leave the PDF Code blank, and in the IRS Attachment Name field, follow IRS K-2/K-3 Naming conventions provided to CCH.|
[CAUTION] CCH continues to advise against manually attaching PDFs of Schedule K-2 / K-3s with more than 50 partners / shareholders, per known PDF attachment efile system limitations.
Will I have to manually attach 5471, 8621, 8858…etc. forms?
|No; they are included in the existing electronic filing schema.|
|Why does Schedule K-2, Part 2, Section 1 income input not flow to the government form for a country code?||We can only report 3 country codes per sheet meaning the same three unique country codes will be displayed in rows A, B, and C on each sheet. Please see our KB article 141963 for more information.|
|My partnership or S-Corporation client is required to prepare Schedule K-2 / K-3(s) and received a Schedule K-1 from a lower-tier partnership. How can I know what amounts and country codes should be input for my client?||The IRS Schedule K-2 and K-3 reports Gross Income amounts. For example, there is no line for Ordinary Income. If your client is required to prepare Schedule K-2 / K-3(s) and received a lower-tier Schedule K-1, then the preparer of the lower-tier partnership should have provided a Schedule K-3 along with that Schedule K-1. You may need to contact the preparer of the lower-tier partnership to obtain your client's correct share of Schedule K-3 data related to that K-1 received.|