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K-1 Reclass

K-1 Reclass FAQ

Here are some regarding supplemental K-1.
  1. How can I enable the K-1 Reclass feature?
    You can enable the K-1 Reclass feature by going to
    FileRoom
    ,
    Admin
    , then
    TAX RETURN
    , then select the checkbox for
    Capture data from Schedule K-1 supplemental pages and allow K-1 Reclass
    .
    Once enabled, you can capture and reclass Schedule K-1 supplemental page variations covered by SurePrep.
  2. How can I enable the K-1 Reclass auto-suggestions?
    You can enable this feature by going to
    FileRoom
    ,
    Admin
    , then
    TAX RETURN
    , then select the checkbox for
    Allow SurePrep to recommend suggestions from the K-1 Reclass to column
    .
  3. Will this feature capture and let reclass of supplemental data for Federal and State K-1?
    Only Federal supplemental K-1 data will be captured and can be reclassed for supported supplemental K-1 variation.
    View the different variations of Supplemental K-1 forms and fields that are captured.
    Tip
    : You can manually capture and reclass Federal supplemental K-1 variants that are not captured by SurePrep.
  4. When SurePrep validates the data, do they also reclass supplemental K-1 pages?
    OCR reads the covered supplemental pages and fields. For 1040SCANverify services, SurePrep verifies the data. However, reclass must be done in SPbinder on the firm's side. You can expedite the process by letting SurePrep to auto-recommend K-1 reclass options based on SurePrep's recommendations.
  5. Does the binder need to be with or without leadsheets?
    The K-1 Reclass feature is available for leadsheet binders only. Contact your SurePrep Sales representative to learn more about leadsheets.
    View all the requirements for using K-1 Reclass.
  6. Is the K-1 Reclass available for 1040SCAN Pro?
    Yes, K-1 Reclass is available for the following services if the binder is created with leadsheets:
    • Outsource (Onshore & Offshore)
    • 1040SCANverify (Onshore & Offshore)
    • 1040SCANverify+ (Onshore & Offshore)
    • 1040SCAN Pro
    View all the requirements for using K-1 Reclass.
  7. How much does it cost per binder?
    There is no additional cost for using the K-1 Reclass feature in SPbinder. However, if the feature is enabled, supplemental K-1 pages verified by SurePrep will be charged as regular standard source documents. Additionally, auto-verified supplemental K-1 pages will be discounted for native PDF documents. Reach out to your SurePrep Sales representative to learn more.
  8. Can I Reclass K-1 if the binder already exported the data to the tax software?
    Yes, after you make the modification, select
    POST RECLASS
     to save your changes. When you are ready to export your updated supplemental K-1 information to the supported tax software, select
    Binder
    ,
    Export
    , then
    Export to Tax Software
    .
  9. Can I use the K-1 Reclass feature for existing binders?
    K-1 Reclass feature will be available for all new leadsheet binders and additional documents added to a leadsheet binder created
    after the feature is enabled
    . To enable this feature, contact your SurePrep Sales representative.
  10. Why is data not picked by OCR from the Supplemental K-1 even after the feature is enabled
    To capture data from K-1 supplemental pages:
    - Firm must enable the feature.
    - A leadsheet binder must be submitted after the feature is enabled.
    - Supplemental page variation type must be covered by SurePrep.
  11. After I Reclass K-1 in year one, will I need to do the same in subsequent years?
    Yes, you will need to reclass each year according to what is reported on Schedule K-1. However, if you have enabled the Supplemental K-1 auto-recommendation feature in the
    Admin
     section, then SurePrep will automatically populate the
    Reclass to
     column with recommendations highlighted with a green border outline.
  12. Can I convert a without leadsheets binder to a leadsheets binder to reclass K-1?
    You can't convert an existing without leadsheets binder to a leadsheets binder. However, you can delete the binder then resubmit it again by selecting the leadsheets binder type. Contact your Sales representative for more details.
  13. Can I break out passive income from the supplemental information of hedge fund K-1s?
    Yes, you can for all supported tax software.
  14. Why is the K-1 Reclass button grayed out (disabled)?
    The
    K-1 Reclass
     button will be disabled for binders created before this feature was enabled. The
    K-1 Reclass
     button is also disabled if the binder doesn’t have any K-1 data that can be reclassed.
  15. Why do I see
    Reclass data not available for this type
    ?
    If there is no supplemental data for the selected Schedule K-1 entity then you will see
    Reclass data not available for this type
    .
  16. Are all line items captured on a K-1 supplemental page?
    Not all line items are captured on a supplemental K-1 page. For example, SurePrep may only capture Line 11, CODE I (with single code only) and Line 13 (with multiple codes).
    View the different variations of Supplemental K-1 forms and fields that are captured.
  17. Can I Reclass K-1 if the binder has already exported data to the tax software?
    Yes, after making the required modifications, select POST RECLASS to save changes. When you are ready to export the updated supplemental K-1 information to the supported tax software, select Binder > Export > Export to Tax Software.
  18. After Post Reclass, what do the stamps with yellow shape circle with red font indicate?
    After Post Reclass, stamps with yellow shape circle with red font appear if the summary and details data appear on the same page.
  19. Why do I see the
    Export Reclass
     window when I attempt to export the binder data?
    The
    Export Reclass
     confirmation window appears when you attempt to export the binder to the tax software without using the
    POST RECLASS
     button to save the changes.
  20. Can we use the K-1 Reclass feature for the 1065 binder type?
    The K-1 reclass feature is only available for 1040 and 1041 binder type.

This article applies to:

  • PRODUCT: SurePrep
  • Sub Product: SPbinder

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