Automating K-1 Data Entry with the K-1 Engine

You can automate the process of entering K-1 data into tax returns using the K-1 Engine. This tool, which is licensed separately from Tax, identifies and extracts data from K-1s that have been converted to PDF files. Both K-1 form data and statement data can be extracted.

Note: The K-1 Engine only supports Partnership K-1 imports into Individual returns for tax year 2020 and later returns. If your firm needs to perform other K-1 imports, see Importing K-1 Data Overview for information about other K-1 import options in CCH Axcess.

To use the K-1 Engine, you first must convert your K-1s to PDF files. Then, you upload the PDFs to the return and specify the K-1 entity. If the correct entity doesn't exist in the return, the engine creates it as part of the K-1 processing. You have the option to review the data before completing the import, although this is not required. If you choose to review the data, you can edit line items and specify data to include or exclude in the import.

Completing the import then requires just a single click. A detailed error log allows you to quickly find and fix any problems that occur during the import.

Tip: If your firm also licenses CCH ProSystem fx Scan, you can further automate the K-1 workflow. Scan and its companion application Scan Funnel can be used to convert both paper and digital K-1s into PDF files, and then optimize the files for flowing data into a return. Also, the Scan autoflow process can upload K-1 PDFs directly to returns via the K-1 Engine, thus eliminating the need to manually upload the PDFs.

Detailed instructions for using the K-1 Engine are in the following topics:

• Importing K-1 Data from PDFs Using the K-1 Engine
• Verifying and Editing K-1 Data Using the K-1 Engine