Importing K-1 Data from PDFs Using the K-1 Engine

The K-1 Engine can import Partnership K-1 data into Individual returns. The K-1s must first be converted into PDFs. This feature, which requires a separate license, is only available for tax year 2020 and later returns.

Note: If your firm needs to perform K-1 imports for other systems or tax years, see Importing K-1 Data Overview for information about other imports available in CCH Axcess.

Before You Begin

Verify the following before attempting this import:

• Your firm has licensed the K-1 Engine.
• The return that K-1s will be imported into has been created in Tax, and you have edit rights for that return.
• The K-1s to be imported have been converted to PDFs.
• Only one K-1 is included in each PDF.
• Each PDF for import is no larger than 20 MB.

Import Workflow

The import process includes three major steps. These steps do not need to be completed during the same session or by the same staff members. If you import a batch of K-1s, and then later receive additional K-1s, you can perform additional imports without affecting the existing K-1s in the return.

1. Upload the K-1 PDF to the return and specify the entity for the K-1. There are two ways to upload PDFs to a tax return:
   • Upload the PDF directly to the return in Tax.
     1. Open the return.
     2. Select K-1 Data > Manage K-1s in the Import group on the Import / Export ribbon.
     3. Click Upload PDF.
     4. Select the K-1 PDFs to upload.
        1. Click Browse.
        2. Navigate to and select the K-1 PDFs to upload.
        3. Click Open.

        Tip: You can select up to 10 PDFs for upload at one time.

        Important: Only one K-1 should be included in each PDF. The K-1 Engine does not support importing multiple K-1s in a single PDF.

     5. If the entity associated with the K-1 already exists in the return, select it from the list in the Entity Selection column. Otherwise, enter the name of the entity in the Entity Name column.

     6. Select either T (for taxpayer) or S (for spouse) in the T/S column to indicate who the K-1 is associated with.

     7. Click Process. The K-1 is uploaded and made available for review and import into the return.

     Note: To remove a K-1 PDF after you have uploaded it, click the Delete button for the PDF in the grid.

     8. Do either of the following:
        • Click Return to K-1 List to proceed with validating or importing the data into the return.
        • Click Close to exit the K-1 Engine without completing the import into the return.

          Note: If you choose to close the return without completing the K-1 data import, the uploaded K-1 remains linked to the return. In a future session, you can proceed with validating and importing the K-1 data using the steps below.

   • Autoflow the K-1s from CCH ProSystem fx Scan.

     When you use this method, the K-1s you send from Scan will be visible in the Manage K-1s window when the autoflow process completes. You can then proceed with either step 2 or step 3 below, depending on your preference. Tell me how to access the Manage K-1s window.

     1. Open the return.
     2. Select K-1 Data > Manage K-1s in the Import group on the Import / Export ribbon.

     Note: This method requires a Scan license, in addition to licenses for Tax and the K-1 Engine. Your Scan administrator must specifically enable the ability to send K-1s to the K-1 Engine in autoflow settings to use this feature.

     See the Scan Help files for more information on using Scan with the K-1 Engine.

2. (Optional) Verify and edit the K-1 data. Open the verification window to view the K-1 image next to the extracted data so you can compare the original and extracted values.
   1. In the return, open the Manage K-1s window by selecting K-1 Data > Manage K-1s in the Import group on the Import / Export ribbon.
   2. Click Verify K-1 Data in the Action column for the K-1 you want to verify.

      Notes: 

      • The status for the K-1 must be Ready for Review before the Verify K-1 Data action is available. You might need to click Refresh to update the status.
      • You might need to scroll to the right in the window to see the Actions column.
   3. Review and edit the K-1 data as needed. For detailed information about using the verification window, see Verifying and Editing K-1 Data Using the K-1 Engine.
   4. Click Save.
3. Import the K-1 data into the return. The import steps vary depending on whether you choose to verify the data.
• Import without verification. On the Manage K-1s window, select the check box for the K-1 you want to import, and then click Skip Verification.
• Import after completing verification. After saving any changes you made on the Verify K-1 Information window, do the following:
  1. Click Import to Tax.
  2. Click Yes to confirm that you approve the import.
  3. Close the verification window.

Note: Depending on the length and complexity of the K-1, the import process might take a while.

When the import completes, a message displays to indicate whether the import was successful. If there were errors, you can view the import log at the following location to see where errors occurred: C:\Users\{user} \AppData\Local\WK\Logs.

4. Review and correct any import errors, if needed. Your options for correcting import errors include:
• Making edits directly in the return. In the Worksheets window, select Federal > Import/Export > Partnership Passthrough Listing. Then, select the entity you want to edit K-1 data for.
• Resending the PDF to the return. This option is most useful if there was a disruption during the import. In the Manage K-1s windows, click Resend to Return in the Actions column.
• Deleting the K-1 with the imported data from the return, and then reimporting the PDF. Use the verification process to edit any problematic data prior to completing the import.

Note: If you reupload and reimport a previously imported K-1 PDF, a separate instance of the K-1 is added to the return. The K-1 that was previously created in the return via the import is not overwritten.

Tell me more about the buttons on the Manage K-1s window.

Button	Description
Upload PDF	Click to select the K-1 PDF files that you want to import into the return.
Skip Verification	Click to import the selected K-1 into the return immediately, without first reviewing or validating the extracted data. You must select a K-1 check box before this button is available.
Unlink	Removes the link between an uploaded K-1 and an entity in the return. You can then create a new entity or link the K-1 to a different entity. You must select the check box for a K-1 before this button is available.
Delete	Removes K-1s from the list. You must select the check box for a K-1 before this button is available. Note: If a K-1 has already been imported into the return, deleting it from this window does not remove it from the return. The K-1 information must be deleted from within the return.
Refresh	Click to update the status of the grid.

Tell me about the information in the Manage K-1s grid.

Column	Description
	Click to select the K-1 you want to perform an action for.
Available K-1	Lists the name of a K-1 that has been uploaded to the return.
Entity in Return	Lists the entity in the return that the K-1 is associated with. If the K-1 is not yet linked and there are entities in the return, you can select an entity from the list in this column. If there is not yet an entity for this K-1 in the return, Create New Entity displays.
EIN	Lists the employer identification number for the K-1 entity.
T/S	Indicates whether the K-1 is associated with the taxpayer or spouse.
Status	Indicates the stage of the import process that the K-1 is in. You can click Refresh above the grid to update the status. The statuses that are available Processing. Data from the K-1 PDF is being prepared for review and import. Waiting for Entity. The K-1 PDF is not linked to an entity in the return. A new or existing entity must be linked to the K-1 before you can proceed with reviewing or importing the K-1 data. If the correct entity exists in the return, select it from the Entity in Return list. If the correct entity does not exist, select Create New Entity on the Entity in Return list. After making your selection, click Link to Entity in the Actions column. Ready to Review. K-1 data is ready for review and import into the return. Sent to Return. K-1 data has been imported into the return.
Actions	Click this column to perform the action indicated. The actions that are available here vary depending on the current status of the K-1. Link to Entity. Available when an uploaded PDF is not linked to an entity. Click to link the PDF to the new or existing entity selected in the Entity in Return column. Verify K-1 Data. Available after the PDF has been processed and linked to an entity. Click to open the Verify K-1 Data where you can review and edit the extracted data that will be imported into Tax. Resend to Return. Available once you have completed the import to a return. If there are errors during import, click this option to reimport the K-1 data to the return.