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K-1 Reclass

Use K-1 Reclass

The
K-1 RECLASS
 tab lets you review the descriptions and amounts captured from the K-1 supplemental pages. You can also rectify any K-1 supplemental data that was were incorrectly recognized during the OCR/verification process. After verifying the supplemental K-1 data, you can reclass (reassign) the amounts to match their respective lines in the tax software. You can also minimize review time by using SurePrep's auto-recommendations feature to reclassify Schedule K-1 supplemental data with possible suggestions.
note
Only selected variations of supplemental K-1 data are captured and available for K-1 Reclass. View a list of all covered variations.

Before you begin

Check requirements.
Before you begin, select here to check if your tax software, service, and binder type are supported. 
Enable the feature.
To capture and reclass Schedule K-1 supplemental data, your firm must first enable the supplemental K-1 feature. Additionally, you can also enable the K-1 Reclass auto-recommendation feature to automatically reclassify Schedule K-1 supplemental data with possible suggestions.
note
Supplemental K-1
 feature is enabled. SurePrep will capture and enable the K-1 Reclass feature for all new binder submissions.

Viewing K-1 RECLASS tab

There are two tabs:
Classic
Simplified

Classic Leadsheets Binder

There are three ways to access the
K-1 RECLASS
 tab:
Select
Binder
, then
K-1 Reclass
.
Select K-1 Reclass
note
K-1 Reclass button is not visible for binders without leadsheets.
You can also select the
K-1 Reclass
 K-1 Reclass icon icon on the toolbar.
Select the K-1 Reclass icon
(Classic Leadsheets) On the
Forms
 tab, when viewing Schedule K-1, you can select the entity and then select the
K-1 Reclass
 button.
Select K-1 Reclass
A new
K-1 RECLASS
 tab will appear on the bottom. You can select the other tabs to switch back and forth if necessary.
K-1 RECLASS tab
On the left panel, select the entity/activity to view supplemental data for that Schedule K-1.
LEADS, NOTES, and K-1 RECLASS tabs
Data captured from supplemental pages will appear under their associated fields.
Data captured from supplemental pages

Simplified Leadsheets binder

There are two ways to access the
K-1 RECLASS
 tab:
Select
Binder
, then
K-1 Reclass
.
Select K-1 Reclass
note
K-1 Reclass button is not visible for binders without leadsheets.
You can also select the
K-1 Reclass
 K-1 Reclass icon icon on the toolbar.
Select the K-1 Reclass icon
A new
K-1 RECLASS
 tab will appear on the bottom. You can select the other tabs to switch back and forth if necessary.
LEADS, NOTES, and K-1 RECLASS tabs
On the left panel, select the entity/activity to view supplemental data for that Schedule K-1.
View supplemental data for the selected K-1
Data captured from supplemental pages will appear under their associated fields.
Data captured from supplemental pages
note
Not all line items (that is, sections) 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).
If there is no supplemental data for the selected Schedule K-1 entity, then you will see
Reclass data not available for this type!
.
Notification that reclass data is not available

Add section

If reclass data is not available for a particular line number/section (for example, not captured by OCR or the verifier), then you can manually add the section to your entity/activity.
Select the
ADD SECTION
 dropdown menu, select an option, then select
ADD SECTION
.
Select ADD SECTION
A new section will be added where you can add/capture the relevant information from the page. To capture data from the page, select the
Add
 Add icon icon to select the text on the source document.
Select the Add icon
You can select descriptions, amounts. The highlighted text will appear in the field. You can also manually add/edit the description if necessary.
Add a Description field

Add new rows

If the supplemental K-1 data was not captured, then you can select
ADD NEW ROW
 to add a new row.
Select ADD NEW ROW

Delete data

To delete a row, select the
Delete
 icon next to each row.
Select the Delete icon
Select
Yes
 to verify. Select
No
 to cancel deleting the row.
Select Yes
You can also select the
Delete
 Delete icon icon to delete the individual entry, then select the
Add
 Add icon icon to select the text on the source document.
Updated fields

Navigation

Each table may only show a limited number of rows. You can select the arrow Pagination icons icons to go between multiple entries for each line.
Select a pagination icon
Icon
Description
First page icon
Goes to the first page in the table.
Previous page icon
Goes to the previous page.
Next page icon
Goes to the next page.
Last page icon
Goes to the last page in the table.

Modifying supplemental K-1 data

If the supplemental K-1 data was erroneously assigned to another line number or activity, then you can modify the
Reclass to
 or
Activity Number/Activity Name/Activity Type
 column to make any necessary corrections.
Reclass to and Activity Number/Activity Name/Activity Type columns
K-1 Reclass auto-recommendation
If your firm enabled the Supplemental K-1 auto-recommendation feature then SurePrep will automatically populate the
Reclass to
 column with recommendations highlighted in blue and pink colors, along with a
Clear
 Clear icon icon next to the recommendation.
Select the Clear icon
Color
Description
Blue
K-1 reclass recommendations based on how it was captured in the prior year by your firm (that is, proforma).
Pink
K-1 reclass recommendations from SurePrep's Artificial Intelligence (AI) and Machine Learning (ML). SurePrep's AI/ML automatically learns common matches over time and shows them as recommendations. In addition to AI/ML recommendations, SurePrep also mimics suggestions based on how SurePrep's expert preparers and reviewers reclassed the item.
Cleared field
Tip: Point to the Reclass Recommendations to view the color legends.
You can reclass the information by selecting another option from the dropdown menu or select a
Clear
 Clear icon icon to clear the reclass suggestion.
Select the Clear Icon for each document
Similarly, you can select the
Revert reclass suggestion
 icon to restore SurePrep's reclass recommendation.
Reclass to column
You can also select
Clear suggestions across all K-1s
 to clear reclass suggestions for all Schedule K-1 supplemental pages.
Select the Clear Icon for each document
Tip: You can also select the
Clear
 Clear icon icon on the column header to clear all reclass suggestions for that K-1.
Post Reclass
Select
POST RECLASS
 to save changes made to supplemental K-1 data.
Select POST RECLASS
On the confirmation window, select
Yes
 to post the changes to
Source Document
,
Forms
 tab, and
Leads
 tab.
Select Yes
Alternatively, if you have Supplemental K-1 auto-recommendations on the
Reclass To
 column then you will see the number of recommendations currently selected by SurePrep across all Schedule K-1 supplemental pages. Select
Yes
 if you have reviewed the all recommendations and want to continue.
Select Yes
Select
Yes
 to proceed.
After you select
POST RECLASS
, supplemental data will update the following areas:
  • Source Document
  • LEADS tab
  • FORMS tab (Classic Leadsheet Binders only)
  • Tax software after exporting data to the tax software
  • A printed copy of the binder
Source Document
References on one or more source documents will update if the entry was reclassified to a new line number on the
Reclass to
 column.
References on a Source Document
You will see stamps (yellow shape circle with red font) if the summary and details data appear on the same page.
Yellow stamps on a document
You will see cross-references (yellow background with black font) if the summary and detail appear across different pages. You can select the cross-reference stamp to go to the relevant page.
Yellow cross-reference stamp on document
LEADS tab
Leadsheets will update according to the selection. Right-click anywhere on the leadsheet, go to
Tools
, then
Force Recalculate
 on the shortcut menu.
Supplemental K-1 data from the
K-1 RECLASS
 tab will be populated in the
List
 sheet in the Leadsheet.
K-1 RECLASS source document
Supplemental K-1 data are also populated in the
LEADS
,
Review Sheets Summary
, then
Schedule K-1 Reconciliation
 sheet(tab).
Schedule K-1 Reconciliation tab
Forms tab (Classic Leadsheet Binders Only)
For classic leadsheet binders, select
INPUT FORMS
 to go to the selected K-1 entities on the
FORMS
 tab.
Select INPUT FORMS
Supplemental K-1 data will populate/update to the Activities/Fields in Input Forms. Multi-instance entries will appear as individual entries on the
Forms
 tab.
Multi-instance appearing as individual entries
Lines with a single instance will show the amounts combined to a single line. You can view the individual amount values listed on the calculator tape.
Multiple amounts combined into a single line
Export Reclass window
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.
To export data without new changes made to supplemental K-1, select
Continue
.
To export data with new changes made to supplemental K-1, select
Cancel
. Go to the
K-1 RECLASS
 tab, select
POST RECLASS
, then try again.
Export Reclass window

Requirements

Firm settings
Enable Supplemental K-1 feature
Binder Type
  • 1040
  • 1041
Leadsheets
  • Classic
  • Simplified
Services
  • Outsource (Onshore & Offshore)
  • 1040SCANverify (Onshore & Offshore)
  • 1040SCAN PRO+
  • 1040SCAN PRO
Tax Software
  • CCH Axcess Tax
  • ProSystem fx Tax (Tax year 2022 and prior years)
  • GoSystem Tax RS
  • UltraTax
  • Lacerte
Submission Type
  • FileRoom
  • API
  • TaxCaddy
  • GoFileRoom
Tax Year
2019 onwards
* Available for binders created after this feature is enabled.

This article applies to:

  • PRODUCT: SurePrep
  • Sub-Product: SPbinder

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