K1X Release - 04/30/2025

K1 Creator

The April release introduces foundational enhancements to streamline entity setup, tax data management, and K-1/K-3 production workflows. These updates focus on simplifying data entry and enabling efficient generation of investor deliverables. Below is an overview of what’s new. 

Entity Ownership Structure & Demographic Data Management

• Introduced a new Investor Information page within each entity to manage relationship-level data between investors and entities.

• Streamlined field organization to clearly distinguish:

  • Fields that apply broadly to an investor (e.g., name, ID numbers).

  • Fields that apply to an investor’s relationship with a specific entity (e.g., ownership %, tax classification).

• California (CA) and New York (NY) demographic data entry is now supported in addition to existing Federal coverage.

Federal K-1 and K-3 Tax Data Management

• Enhanced the Federal Scenario Builder with:

  • Activity-level breakout of federal amounts

  • Excel-based import for streamlined data entry

• Introduced support for Schedule K-3 (excluding Part XII, which will follow in a future release) for applicable entities.

State Tax Data Management

This release introduces a new interface for managing state tax data to support Schedule K-1s. Over time, this will become the central workspace for preparing state-specific amounts across all jurisdictions. For now, state data management is available only for California, with additional states to be added in future releases using the same design.

Key Features in the New Interface:

• Automatic import and apportionment of federal data: Federal events seamlessly carry over to each state, and users can enter an apportionment percentage for each state when activating filing jurisdictions for their entity. This percentage will be used to apportion the federal events to the respective state.

• Flexible jurisdiction-specific adjustments: You can create adjusting events for a specific jurisdiction, enabling precise control over differences from federal amounts.

Statements & Package Building

The April release expands the capabilities for package building by introducing support for the K-3 (excluding Part XII, which will follow in a future release).

990-Series Solutions

• Form 990:
  • Schedule A: Part I, Line 12g text has been modified to display as 2 lines, reducing text clipping on the PDF.
  • Schedule B: Presentation for Part II, non cash contributions, has been modified to no longer display numbers when no such contributions are entered.
  • Form 8936 - Clean Vehicle Credits: Schedule A, Part 5, line 21 calculation has been modified to properly display as a positive number.
• Alabama Form 20C: The checkbox for a consolidted federal return is no longer checked for clients that are part of a controlled group but no filing a consolidated return.
• California: Maintenance for electronic filing has been completed and returns may be electronically filed once again. 
• Missippi: Paid preparer information has been modified to reflect Self-prepared returns within the XML and may now be e-filed.  

Circular 230 Disclosure

To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this software (including any reports or downloads) is not intended or written to be used and cannot be used for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) supporting, promoting, marketing or recommending to another party any transaction or matter addressed herein. This software is for informational purposes only and should not be regarded as tax advice. Please consult your tax advisor or attorney for guidance on your individual tax situation.