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, selectForeign Information.
- SelectPtr Distributive Share-International, thenForeign Tax Credit Limitation-II
- SelectGross Income, thenBy Country.
- Go to theCountry nameentry, make sure theCode XXis checked in the Country Code OR Category Code OR Code XX section.
- IfCode XXis checked, make sure that no other line under theForeign Tax Credit Limitation - Gross Incomesection is populated, except for theSourced by partnerline.note
- If amounts are expected on the other line except forSourced by partnerline 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.
