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e-file 1065 returns

E-file for large partnership returns with direct k-1 import

E-file large partnership returns with K-1 and K-3 data. Split partners across the returns. Create XML files. Then, combine them into 1 federal return and separate state returns.

Step 1 - federal and state

  1. Create a new locator or binder depending on your product (main return). Don’t include partner information in this return.
  2. Enter all partnership details in this main return. Make sure you include federal and e-filed states. Then, create the federal XML e-file.
  3. Clear e-file diagnostics related to partnership forms before continuing to Step 2. Ignore the e-file diagnostics pertaining to partner information.

Step 2 - federal

  1. Make a copy of the main return from Step 1. This becomes your federal main return for Step 3 and later.
  2. Follow the Partner allocations chart. Create extra federal main return copies based on partner count. Don't repeat partners. Complete each copy through Step 2 before making the next.
  3. Consider partner limits:
    • If your return includes extensive Schedule K-3 data, limit each copy of the federal master to 3,000 partners.
    • If
      Partner Allocations Enabled
       is on and Schedule K-3 data is limited, keep each return to 5,000 partners or fewer.
    • If Schedule K-3 data is limited and you use Direct K-1 import, limit each return to 10,000 partners.
    Condition
    Extensive K-3 data
    Limited or no K-3 data
    Partner allocations enabled
    maximum 3,000 partners
    maximum 5,000 partners
    Partner allocations not available
    maximum 3,000 partners
    maximum 10,000 partners
    important
    When Schedule K-3 is in the main return, open each federal master copy. Complete Schedule K-3 and Schedule K-1 for every partner. The K-3s need to be in the same order as the K-1s.
  4. Create an XML file. The XML file contains both K-1s and K-3s.
  5. Clear e-file diagnostics to qualify the returns.
  6. Repeat Step 2 until you include all partners.

Step 3 - federal

Download the qualified federal XML files from all the copies of the federal main return.

Step 4 - federal

In the federal main return, in Organizer, go to
Federal E-file
, then
Attachments
, then
K-1 aggregation
 to attach all federal XML files from Step 3.

Step 5 - federal

  1. In Organizer, go to
    Federal E-file
    , then
    Create E-file
     to create the federal main return e-file.
  2. Clear e-file diagnostics to qualify for the federal master return.
  3. Submit the federal main return to the IRS.

States

Submit the federal XML and confirm IRS acceptance. Then move on to the states. Because states don't include Federal Schedule K-3 data, the client can import up to 10,000 partners into each state copy.

Step 6 - states

  1. Make a copy of the main return from Step 1. You'll use this in Step 8 to submit the qualified state returns.
  2. Copy the state main return as needed. Each copy of the state master should be limited to 10,000 partners.
  3. Create the states XML files.
  4. Clear e-file diagnostics to qualify the state returns.
  5. Repeat Step 6 until all partners are included.

Step 7 - states

For every state, download the qualified state XML files from all the copies of the state main return from Step 6.

Step 8 - states

For every state, in the state main return, in to
[State]
E-file
Attachments
K-1 aggregation
Summary to attach all state XML files
from Step 7.

Step 9 - states

In Organizer, go to
States
State E-file
Enable/Create Returns
Federal Copy
 tab.
For each state, select
Attach the federal XML created in another return
, and enter the Federal FEIN, Locator number, and Account number of the federal main return you submitted to the IRS in Step 5.

Step 10 - states

  1. In Organizer, go to
    States
    State E-file
    Enable/Create Returns
    Return
    tab to create the state XML files.
  2. Clear e-file diagnostics to qualify each state in the state main return.
  3. Submit the state main return for each state.
note
If you are in one of the ONESOURCE products, we recommend you limit printing other/related binders while working on e-file returns. Don't attempt to print all states at the same time.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: 1065 Partnership
  • Subject: e-file

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