SK2-F1065-032 e-file error

If Schedule K-2 (Form 1065), 'OtherCategoryDescriptionCd' in 'SchK2K3InterestIncomeGrp', has a value of "XX", then the corresponding 'USSourceIncomeAmt' and 'ForeignBranchIncomeAmt' and 'PassiveCategoryIncomeAmt' and 'GeneralCategoryIncomeAmt' and 'OtherCategoryIncomeAmt' must be zero, if amounts are entered.
This happens when Schedules K-2 and K-3, Part II, Section 1 uses Code XX and an entry is made at other sources except for Sourced by partner line at Organizer, Foreign Information, then Ptr Distributive Share-International, Foreign Tax Credit Limitation-II, then Gross Income at By Country folder.

Solution

  • In Organizer, select
    Foreign Information
    .
  • Select
    Ptr Distributive Share-International
    , then
    Foreign Tax Credit Limitation-II
  • Select
    Gross Income
    , then
    By Country
    .
  • Go to the
    Country name
    entry, make sure the
    Code XX
    is checked in the Country Code OR Category Code OR Code XX section.
  • If
    Code XX
    is checked, make sure that no other line under the
    Foreign Tax Credit Limitation - Gross Income
    section is populated, except for the
    Sourced by partner
    line.
    note
    • If amounts are expected on the other line except for
      Sourced by partner
      line for Code XX, the return must be paper filed.
    • If Aggregation file is being used, check the xml aggregation attachment for code XX, and may need to recreate the file, and reattach it to remove the rest of the K2 and K3 diagnostics.

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