E-file partnership returns with multiple partners (federal and state)

Step 1: Federal and state setup

Create a new locator or binder for the main return. Don’t include partner information in this return.
Enter all partnership information for federal and any XML‑filed states. Then create e‑files for the federal return and those states.
Clear e-file diagnostics related to partnership forms before continuing to Step 2.
Ignore the e-file diagnostics about partner information. You'll use the main return starting in Step 5 to submit the qualified federal and state returns.

Step 2: Federal partner allocation

Copy the main return as needed. The number of copies depends on partner allocation rules and the total number of partners. You'll add partners to each copy of the main return.
Don’t repeat a partner across these copies of the main return. Complete each main return copy through the end of Step 2 before creating the next copy.
Apply partner limits based on Schedule K-3 data:
Extensive Schedule K-3 data
: Limit each main return copy to 3,000 partners maximum.
Limited or no Schedule K-3 data
: Limit each return to 5,000 partners maximum.
When the Federal Schedule K-3 is in the main return: Within each copy of the main return, complete the Federal Schedule K-3 and Schedule K-1 for each partner. The K-3 schedules must be in the same order as the K-1 schedules.
Create XML files for federal and states. The federal XML file contains both K-1 and K-3 schedules.
Clear e-file diagnostics to qualify the returns. Repeat Step 2 until all partners are included.

Step 3: Federal XML download

Step 4: Federal XML attachment

Step 5: Federal submission

Go to
Organizer
Federal E-file
Create E-file
to create the federal main return e-file.
Clear e-file diagnostics to qualify the federal main return.
Submit the federal main return to the IRS.

Step 6A: State (Option 1: Create a separate state main return

Copy the main return from Step 1.
For every state, in the state main return, go to
[State]
E-file
Attachments
K-1 aggregation
Summary
to attach all state XML files from Step 3.
Go to
Organizer
States
State E-file
Enable/Create Returns
Federal Copy
tab.
In each main return copy, complete federal Schedules K-3 and K-1 for every partner. Make sure each K-3 appears in the same order as its corresponding K-1.

Step 6B: State (Option 2: States using the same main return as federal)

Copy the main return from Step 1.
For every state, in the main return, go to
Organizer
[State]
E-file
Attachments
K-1 aggregation
Summary
to attach all state XML files from Step 3.
Go to
States
State E-file
Enable/Create Returns
Federal Copy
tab.
For each state, select
Attach the federal XML created for Federal
to attach the federal return that was submitted to the IRS in Step 5.

Step 7: State submission

Go to
States
State E-file
Enable/Create Returns
Return
tab to create the state XML files.
Clear the e-file diagnostics to qualify each state in the state return.
Submit the state returns for each state.