Schedule K-2

1. Complete the required information in Section A through Part I.
2. For Part II and later please refer to the notes below:
   1. For category codes, press F3 on your keyboard to access the IRS form instructions.
   2. Per the IRS instructions, if the information required in a given section exceeds the space provided within that section, do the following:  Complete all entry spaces in the section and attach the remaining information on additional sheets. For all attachments, include the part, section, line number, and column of the relevant portion of the Schedules K-2and K-3.
      • To do this in ATX, do the following:
        1. Click the last field in the Description column.
        2. Click Forms > Lists > Custom List.
        3. Under Design Your List, do the following:
           1. Click Add Column to add new columns.
           2. Enter the Column Name and select the Column Formatting.
           3. Repeat until you have added enough columns to match the section.
           4. Click Save As Template > enter a [name] for the template > click Save.
              • Note:  This allows you to reuse this template
        4. Under View & Edit Your List, do the following:
           1. Enter the List Name per the IRS naming convention mentioned above.
           2. Enter the additional information in the appropriate fields.
           3. Click Add Records, if you need more lines.
           4. Click OK when closed.
              • Note:  The Description field will turn green to indicate that a list is attached.
        5. To use this Custom Template in other sections, do the following:
           1. Click the last field in the Description column.
           2. Click Forms > Lists > Custom List.
           3. Click Use a Template.
           4. Select the Template that you created.
           5. Enter the appropriate information under View & Edit Your List.
           6. Click OK.

Schedule K-3

1. Complete the required information in Section A through Part I
   • Note:  The partner's/shareholder's TIN does not flow from the Schedule K-1.  It must be manually entered for each recipient.
2. For Part II and later, please refer to the notes above for Schedule K-2.
3. Duplicate the Schedule K-3 for each additional partner or shareholder, using these steps:
   1. Right-click the Sch K3 (1065 or 1120S) tab.
   2. Click Duplicate.
4. Complete the required information as needed.

Efiling with K-2 and K-3

     For Tax Year 2021, we no longer support efiling with the K-2 and K-3.  Any 1065 or 1120S returns that require those forms must be paper filed.  We plan to include efiling functionality in the
     Tax Year 2022 software