Direct K-1: Suggested Best Practices

  1. Use the latest 2021_1065_DK1_MM-DD-YYYY.xls DK1 Comparison, available for download.
  2. Review the release notes. We will update the release notes when there is a change to the DK1 Comparison.
  3. Use the correct replacement flag in the header. The replacement flag defines the manner in which the data fields in the target tax return are initialized. Exports default to an R flag. It is generally recommended that you import with an M flag. Files with headers missing the replacement flag will fail to import. For more information on the replacement flags, see below.
  4. A new return (a blank return or with minimal data) works faster and more efficient than an existing return that already has data.

    When using an existing return, all allocation formulas will activate during the mini compute. This can consume a lot of time and resources.

  5. When using an existing return, disable the Partner Allocations option and suppress the Letters and Filing Instructions option located in the Organizer before importing data.
  6. When working with a large import file (approximately 800,000+ lines), we recommend that you divide the file up into different files and import the information into the same locator from the separate files.

    Keep in mind: The smaller the file, the faster the import.

  7. The estimated time for the import to be completed depends on the type of locator (new or existing), number of lines in the import file, and most of all network traffic. New returns with 800,000+ lines could be completed within 1-2 hours. Depending on the file size prior to imports, existing returns with 800,000+ lines in the import file could be completed within 3-4 hours.
  8. If you are preparing state returns that are not included in the DK-1 Import Tool, create a new locator for those states so that you can use Partner Bridge to import the partner information.

Replacement Flags

Replacement Flag: The replacement flag defines the manner in which the data fields in the target tax return are initialized. Exports default to an R flag. It is generally recommended to import with an M flag. Files with headers missing the replacement flag will fail import.

  • M: Field Level Replacement Flag. (This is the recommended flag for import.) Only the specified fields in the import file are replaced. Existing data on fields not in the import file remain intact. Do not include the place holder fields with the word NONE. It does not help minimize the processing time.
  • R: Return Level Replacement Flag. All fields defined for import in the Direct K-1 workbook are wiped of any existing data and replaced with the incoming data in the import file. Group Numbers must always begin with 1 and be in consecutive order. Group Numbers are not required to be the same as partner numbers. Do not include a Form Name in the file that has no associated data. If line items contain data for some partners and not for others, use the word NONE for the ones that have no data. The word NONE may or may not import, depending on the type of field, but it keeps the data aligned correctly and prevents issues. If the word NONE is used in the import file for a field that e-file does not allow NONE to be used, the application strips out the NONE before creating the e-file to comply with the e-file requirements.
  • U: Form Level Replacement Flag. All fields of each form name listed in the import file are wiped of existing data and replaced with the data in the file. Group Numbers must always begin with 1 and be in consecutive order. Group Numbers are not required to be the same as partner numbers. Do not include a Form Name in the file that has no associated data. If line items contain data for some partners and not for others, use the word NONE for the ones that have no data. The word NONE may or may not import, depending on the type of field, but it keeps the data aligned correctly and prevents issues. If the word NONE is used in the import file for a field that e-file does not allow NONE to be used, the application strips out the NONE before creating the e-file to comply with the e-file requirements.
  • S: Field Level Replacement Flag for Large Files. This is the same as the M flag for use with import files that have 500,000 - 800,000 lines of data.

    This flag should ONLY be used when the import file is sorted first by Group Number and then by Form Name. Use of this replacement flag in the sorted import file automatically splits the import file by Form Name, which requires less memory, and thereby allows the import to complete much faster. Do not include the place holder fields with the word NONE. It does not help minimize the processing time.

 

 

 

Import/Export/dk1_13.htm/TY2021

Last Modified: 03/20/2020

Last System Build: 10/18/2022

©2021-2022 Thomson Reuters/Tax & Accounting.