K-1 Aggregator FAQs

This resource provides answers to a list of commonly asked questions that our users ask relating to K-1 Aggregator. This list is updated as needed, and suggestions are welcome.

Category	Question	Answer
Application	Can prior year information be entered in?	Yes, prior year information can be entered into the application by using blank excel files provided within K1 Aggregator.
Application	Can information entered roll into the next year?	Yes, information can be rolled into the next year – this option will be available on the ‘Instance’ page allowing you to select the Instances that will roll to the next year.
Application	Can multiple individual work within the application at one time?	Yes, the K1 Aggregator application is cloud based and allows for multiple individuals to be working within the instances/investments/etc. at the same time.
Application	Can I add and remove users from my K1 Aggregator application?	No, this will need to be done by contacting K1x Support. You can reach our support team by clicking on the "Get Help" button on our apps or here in the Help Center.
Application	How do I opt into the early access program?	After signing into K1 Aggregator, click on the in-app help (blue question mark) at the bottom left-hand corner >Click “Helpful Links”, then “Early Access Opt-In” >Use these same steps to come back and opt out if you want to revert to the previous version.
Application	When creating an instance, what is the identifying number?	The identifying number is a firm specific identification number.
Export	Is a user able to upload one K-1 into CCH without overriding others?	Yes, you can pick and choose which K-1's are sent to the tax filing software within your engagement
Export	Can a user export from a prior year CCH Axcess return?	You can drop prior year data into the K-1 excel template to upload or drop prior year PDF K-1's into K1 Aggregator
Export	When importing into Axcess, does the data align correctly with the existing K-1 screens existing in the taxpayer/client, or does it import to new K1 input screens in Axcess? For example, if we have 2 K-1's in Axcess, will the 2 K-1s import and create 2 more input screens, so the originals have to be deleted?	The exported data will align with existing investments. This is accomplished by matching activity numbers between filing system and K1 Aggregator
Export	Will Analyzer overwrite "estimates" that had been entered into the tax software previously?	Yes, if there are numbers within a line item in K1 Aggregator.
Export	If data is reviewed in K1 Aggregator, does this eliminate the need to review what gets imported into CCH or is there risk that something doesn't get imported / is imported incorrectly?	Reviewing in K1 Aggregator should cut down on overall review within the tax return. However, an additional review should be made to ensure the values are the same. Generally the export to filing systems is 100% accurate.
Export	When importing this information in CCH, how many errors should we anticipate reviewing in CCH?	It is connected with API, so it's a direct import. Generally, there will not be any errors.
Export	Do we have discretion on what imports into the tax software. For example, can we choose not to import the state information?	The import to the tax software will include both state and federal information. A potential work around for this would be to leave the State Information blank – meaning, leaving the sections completely blank and not having entered zeros.
Foreign Reporting	How can we generate foreign disclosure forms (e.g., 926, 8865, 8621)?	You can navigate to “Foreign Forms” in your left-hand navigation to access a view that would allow you to generate foreign disclosures 1 by 1 or in bulk. You can also generate individual foreign forms along the way within the K-1 edit screen under “Foreign Disclosure Forms.”
Foreign Reporting	I can enter transfer information under "manage investments" but not sure where to enter other information from K-1 footnotes	Use the pencil icon to edit additional details of the foreign forms – you can access the pencil icon from the manage investments edit screen or from the “Foreign Forms” view in your left-hand navigation.
Foreign Reporting	Why are no forms showing up under "foreign forms"	You must have made an edit through the pencil icon for a form to generate. See above for guidance on how to edit a foreign form.
K-1 Format	If a client provides multiple K-1s in a single pdf, will the system separate them or does each K-1 have to be uploaded in individual pdfs?	Each K-1 must be in a separate PDF file. These separate PDF files can be uploaded in bulk but must each contain a federal K-1 within the file. Cover letters are okay and will be ignored
K-1 Format	Do state K-1s need to be broken out into separate files by state?	No, However, there must be a federal K-1 leading state K-1's
K-1 Format	Does the K-1 need to be in PDF format?	Yes, PDF format only
K-1 Format	Do you need to separate federal & state K-1's when uploading?	No federal & state K-1s should be all combined together for uploading
K-1 Format	If we receive a K-1 that is password protected and the password cannot be removed, is the tool able to read the PDF of the K-1?	Password must be removed before dropped in K1 Aggregator.
K-1 Format	Do you need to remove cover letter and page with K-1 codes from the PDF or will the software disregard those pages?	There is no need to remove these pages. It will disregard these pages.
Reader Capability	When a user imports K-1s into Axcess for partnerships it overrides the carryovers from prior years. Is that going to be the same case when importing from this for partnerships/1040s/1041s etc?	It will be the same case.
Reader Capability	Does K1 Aggregator read state income from state k-1's or state summary footnotes?	It reads state income but not state footnotes. It will however, read various state apportionment tables in certain formats.
Reader Capability	Will K1 Aggregator produce a report or check a box to show any state entity level elections made?	No
Reader Capability	Will a user get a warning if there are duplicates k-1s?	The user will not get a warning for duplicate K-1's. It is recommended to lock down investments once a user is satisfied with the numbers.
Reader Capability	Can the reader identify the difference between spouses on MFJ returns?	The reader will not distinguish between spouses with the same investment on a MFJ return. It is recommended to manually add a second investment name, then click "upload to K-1 Reader" on the right hand side of the specific investment. This will allow the reader to function on a K-1 with the same EIN.
Reader Capability	If a user has passive loss carryovers from the prior year, is there a way to include that in the import so that way we do not lose the carryover?  Or will we have to go in and include those amounts back in?	K1 Aggregator will not fill out these sections while importing into a tax filing system
Reader Capability	Will K1 Aggregator read an Amended K-1?	Yes, it will pick amended K-1 and Final K-1 under General Information and will get checked accordingly.
Reader Capability	Will K1 Aggregator flag a K-1 when the capital account goes negative.	No, it does not currently flag this but there are notes and tags to help identify
Reader Capability	Can it split out a k-1 line items into 'Trader-Nonpassive' and 'Investing-Passive/Portfolio' based on analysis of white paper footnotes?	K1 Aggregator will not distinguish between trader or investing classifications. The reader will pick up certain descriptions in some formats but will not reclassify based on the classification.
Reader Capability	Does the reader read activity statements?	Currently, K1 Aggregator does not read formalized activity statements, however, there is an ability to add activities while editing your investments. Click the "+" sign to add an activity. This will be exported into the filing system.
Reader Capability	Can K1 Aggregator read manually-prepared K-1s?  (Cursive writing, custom federal page etc...)	Generally K1 Aggregator will not be able to read these types of K-1's.
Reader Capability	Can it read a Grantor Trust Letter? Or only the K-1 form?	No
Reader Capability	If we have a multi-tier partnership structure, do the 926 footnotes have to be written/drafted in a certain way to be read correctly?	The 926 footnotes must be drafted in a specific format for the reader to pick up the information
Reader Capability	Will it fill out Form 7203 in the 1040 from an S Corp K-1?	K1 Aggregator will not fill out form 7203 in the 1040
Reader Capability	Will it recognize when a state k-1 has indicated that a PTE election was made?	No
Reader Capability	if we choose both taxable income and UBI as a default, will K1 Aggregator get thrown off if there's no UBI	No, it will not throw the system off if there is no UBI
Reader Capability	What happens when multiple K-1s from the same investment are received (i.e. Class A and Class B). Will the program scan and import both of them?	The reader will not display another K-1 with the same EIN when uploading from the main section. To get around this, a user can enter the additional investment in the manage investments screen, then click on upload from K-1 reader on the right hand side to use the reader capabilities.
Reader Capability	How does the software deal with differences between the actual name of the partnership on the k-1 and the name that has been historically used on the tax return?	K1 Aggregator will read what's on the actual K-1, you can change what was read in the edit section after.
Reader Capability	Will a subsequent import override locked investments?	Not it will not.
Reader Capability	If an engagement was doing a 50% allocation could you theoretically export the data to the Excel, divide everything by 2 and then re-import?	Yes, this would be one method to accomplish this goal
Reader Capability	Can it still read the k-1 is final and partnership is a PTP?	Yes
Reader Capability	Some state K-1s are not in the same format, even if it's for the same state.  For example, not all Colorado K-1s we receive look the same.  Can the software handle the formatting differences?	Depends on the state K-1
Reader Capability	Does the software slow down as it gets closer to a deadline?	K1 Aggregator will/should not slow down closer to deadline. If you notice any slowness please report it to support
Reader Capability	Is there work being done to eventually read/incorporate the 8621/8865 footnotes?	K-3 development took priority over these forms. These may be developed in the future
Reader Capability	Does Analyzer aggregate the 926/8621 info for the same foreign entities from different K-1s?	No
Reader Capability	If the K-1 received is scanned pages, can K1 Aggregator still read the front page and whitepages?	The reading capability is limited for scanned pages.
Reader Capability	What years is this for?	2018 to current tax year
Reader Capability	Does K1 Aggregator split the state taxable income by state?	Yes
Reader Capability	Is there a function to not import states that we are not required to file?	A user can deselect states after K1 Aggregator has read the K-1.
Reader Capability	Is an instance visible / editable by everyone in the firm or does the engagement team need to be assigned when setting up?	Each engagement team is responsible for setting up instances. If you need help with bulk uploads, please contact tax technology.
Reader Capability	If there is a K-1 marked final in the current year, will it roll to next year?	No, if a K-1 is marked final it will not roll to the next year
Reader Capability	Is there a way to tell it not to pick up a specific line item?	No, the reader will pick up all of the information that it is able to read. A user can then removed unwanted data
Reader Capability	Can an adjustment/allocation be set up by passthrough entity and be applied to all 1040 partner/shareholder K-1?  For example:  L11A = L11A+L11H+L11G-L13X	Best practice to accomplish this is to either use the reclass column or export all investments to the excel template, adjust with an excel formula, and then import back in to K1 Aggregator
Reader Capability	Should engagement teams use this for foreign form reporting?	XML's cannot be attached within CCH so the foreign form generation should not be for CCH returns. Foreign forms can be used .for TR returns by pulling the XML and attaching to the locator.
Reader Capability	What entity types are available/supported in K1 Aggregator?	K1 Aggregator works for all entity types (1120, 1120S, 1040, 1041, 1065, 990-T, 990-PF).
Reader Capability	Can K-1s with password protection be read?	No, they cannot. The password protection must be removed for the reader tool to successfully read and process the K-1
Reader Capability	What are best practices for uploading K-1s?	No heavy watermark, password protection, review comments etc. as these will affect accuracy. Each K-1 must be split out into a separate file.
Reader Capability	How long does it take to process a K-1 that is dropped in?	10-15 seconds per file.
Reader Capability	What does the green check mark represent?	The green check mark represents that taxable income tied to how the K-1 was read (Box L); The green check may not always be present, even when the data is accurate. When the green check is not there, it indicates that the investment should be reviewed for errors. The green check is present when Box L Current year net income (loss) matches Box L Current year tax increase (decrease) based on the extracted component values. If you find an error and make changes that result in Box L Current year net income (loss) matching Box L Current year tax increase (decrease), the green check mark should appear.
Reader Capability	What foreign forms can be read currently?	926 can be read currently. With that said, all other major foreign forms including 5471, 8865, 8886, and 8621 are supported and can be entered in manually to the application.
Reader Capability	What parts of the Schedule K-3 are supported for reading?	All 12 sections are supported for reading and can be exported as a whole or separately on the Review Investments tab of K1 Aggregator
Reader Capability	How many K-1s can be uploaded at one time?	There is no limit to how many you can upload at the same time (assuming all files are within the file size limit)
Reader Capability	What is the file size limit on a K-1 file for upload?	Files larger than approximately 15 mb will fail to upload – typically, these are scanned documents with many pages.
Reader Capability	Is there any way to make part of the forms automatically populate (i.e., populate alpha information for partnerships that have EINs starting with "98")?	Not in our current state, but that’s a great suggestion for our ideas portal. For the Forms 926, there is a function which will allow you to copy forward prior year responses, so in year 2 of using the system you’ll see some benefits of rollover if you’re preparing similar forms year over year.
Reader Capability	Is there any way for us to "sign-off" on an investment that we've reviewed and agree with what the reports are showing?	Yes, a few options for signoffs: Manage Investments – clipboard icon has some nice project management tooling, including signoffs with a date, review or informational notes, status updates. I also see some clients use the tags as a way to indicate signoff or approval of specific items or certain investments.
Reader Capability	Can we upload state K-1 files if there is no federal K-1 in the file, or do the federal and state K-1s need to be in the same PDF?	In the current state, a federal K-1, page 1 must be present in the file for it to be read successfully.
Reporting	What reporting is available for foreign forms?	Reports and Exports > Analysis > Transferee Summary, Rolling Transferee Summary
Reporting	What reporting is available for foreign forms?	Reports and Exports > Advanced Reporting > Form 8621 Foreign Disclosures, Form 8886 Foreign Disclosures
Reporting	Any way to generate "tax return reporting summary" and "K-1 income/expense summary" reports without all of the individual partnership detail listed, just totals?	I don’t see an ability to limit the outputs that way in the current state.
Reporting	Is it possible to run reports in PDF rather than Excel?	All of our reporting is currently excel-based and not available in PDF outputs.
Reporting	When creating investment before importing K-1, then import K-1, doesn't recognize original entry (i.e., K-1 goes into new investment record)	You can use the “slotting” feature of K-1 Reader to match a specific PDF document to a specific row. the names / EINs must be a perfect match for the drag & drop to interpret the match correctly, so the “slotting” functionality takes the guesswork away from the AI and allows you to decide.
Reporting	Is there a report that shows the reconciliation between book income/loss and taxable income/loss (i.e., M-3 supporting statement)	K-1 Income & Expense Summary (or K-1 Line-Item Summary) contain summary data of temp & perm differences and could likely serve as a supporting workpaper.
State Reporting	Can a user enter estimate state K-1 income?	Yes, you can enter in an entire investment as an estimate if needed separate from the actual/final information.
State Reporting	Does it read state K-1s or just footnotes to the federal K-1 with state information?	The K-1 Reader extracts data from 23 separate state K-1s encompassing 21 taxing jurisdictions
Tax Specific	What types of entities does this application send K-1 data to?	1040,1041,1065,1120,1120S,990,990-T,990-PF
Tax Specific	Would a user be able to export from 2022 and then import to 2023 to use for estimates?	Yes
Tax Specific	How does it work for tiered partnerships	A user can export reports from a lower tier entity, edit if necessary (apply allocation percentages), and import into an upper tier.
Tax Specific	Will K1 Aggregator pick up a 731(a) gain footnote if the partnership calls it out?	K1 Aggregator is not currently compatible with this footnote
Tax Specific	For a footnote (sec. 1061)  that explains a portion of the Long Term Capital Gain was not held for 3 years, will K1 Aggregator 'move' that portion to the short term line of the K-1?	The software itself will not move it but there are reclass areas for the user to accomplish this.
Tax Specific	Can a user input which K-1's the client received in the prior year?	There is a notes section that can help accommodate this request
Tax Specific	After additional activities are added, can they be imported into the filing system?	Yes
Tax Specific	Can a user reclass from non-passive to passive activity?	Yes, there is a reclass column to accomplish this.
Tax Specific	For funds of funds, the 926 footnotes would need to be aggregated and flow to the footnotes of the upper tier entity's K-1 footnotes rather than the actual form 926. Is there any possibility of future functionality in this area?	Anything is possible
Tax Specific	Are income/deduction items always +/- vs. income/deduction?  So if you map other deductions from K-1 to other income on return, the deductions will be presented as income?  Any way for deduction boxes to be reflected as "negative" income on return?	All values are default positive (ie income items are all “plus” and deduction items are coded “less” in the formula logic). Negative values are interpreted as contra amounts.
Training	How does a user find activity numbers in CCH to match the investment for exporting?	Activity numbers in CCH will be located in Partnership Passthrough section of the entity in CCH which has to get matched within K1 Aggregator.
Training	Does the tax return in the filing system need to be closed while sending data into the return?	The tax return must be closed while exporting data
Training	Can a user bulk upload instances and investments?	Yes. Over on the right-hand side of the Home screen, there is a template to download, edit, and upload back to K1 Aggregator
Training	Can the instances/activity numbers be exported from CCH Axcess into K1 Aggregator?	You can export out activity numbers from CCH and upload an excel template into Analyzer. Please join us in our office for a detailed walk-through. However, CCH does not directly import activity numbers into K1 Aggregator.
Training	What does "Federal line-item detail from whitepaper" mean?	Footnotes
Training	Is the state of residence the residence of the individual receiving the K-1, or of the business that generated the K1	Receiving K-1
Training	Is there a benefit to enter additional missing information into this software vs. just entering the missing information directly into the tax return software?	Yes, there is a benefit to this as it will keep all information accurate within K1 Aggregator year to year. However, it is up to each engagement team to utilize the application how they see fit.
Training	Should we use this for all clients/K-1s?  What about smaller clients with simpler K-1s, or not that many K-1s?  Is there a rule of thumb for number of K-1s/complexity?	Generally, we think it's best practice to use this for all clients/K-1's as the capabilities exceed the reader functionality. The project management features and reporting analytics are very helpful to understand the full passthrough picture. Ultimately, it is up to each engagement team to decide what extent they want to use the K1 Aggregator.
Training	Is there a guide or printable instructions on how to use the application?	Guides are built into the application and can be accessed by selecting the ‘blue Lynx’ icon. The guides are dynamic and will apply to the page you are on – these will be a helpful resource on how to use the features and tools within the application.