2059354

[#1]

The following diagnostic is generating:

There is a problem with incoming CO K-1 # {PrefixNum} . If an incoming Form 106K is marked non-resident, then one and only one checkbox for composite, Form DR107, Excluded Nonresident, or SALT Parity election is required per 106K. .

Solution:

Individual:

Click on the diagnostic from the Diagnostics tab.

In screen 20 Passthrough K-1's click on the appropriate K-1.

Go to Colorado Form K-1 (EF Only) if marked as a Nonresident then check only ONE checkbox composite, Form DR107, Excluded Nonresident, or SALT Parity election.

Corporate:

Click on the diagnostic from the Diagnostics tab.

In screen 16 Schedule K-1>Colorado Form K-1 (EF Only)section. If marked as a Nonresident then check only ONE checkbox composite, Form DR107, Excluded Nonresident, or SALT Parity election.

S-corp:

Click on the diagnostic from the Diagnostics tab. In screen 24 > Colorado Form K-1 (EF only)>If marked as a Nonresident then check only ONE checkbox composite, Form DR107, Excluded Nonresident, or SALT Parity election. If Form DR 107

Go to screen 46.261>Colorado K-1 Overrides>Colorado Miscellaneous>Form DR 0107: 1=include NR shareholder on form>1

State & Local>screen 42 Miscellaneous.>Colorado Miscellaneous>Print Form DR 0107: 1=when applicable, 2=suppress, 3=force[O] enter a 1. Form DR 0107: 1=include NR shareholder on form.

Screen 24 Colorado Form k-1 [EF Only} >Nonresident and DR 107 included boxes checked

Or Scorp:

42.261>Colorado Misc.>Composite & SALT Parity (PTE) Income tax return>SALT Parity Act/PTE election made for all qualifying shareholders

Partnership:

Click on the diagnostic from the Diagnostics tab. Screen 23 > Colorado Form K-1 (EF only)>If marked as a Nonresident then check only ONE checkbox composite, Form DR107, Excluded Nonresident, or SALT Parity election.

Go to State & Local>screen 37.261 Colorado Miscellaneous>1=Print Form DR 0107, 2=do not print [O] code 16>enter a 1.

Fiduciary:

Click on the diagnostic from the Diagnostics tab. In screen 25 Passthrough K-1's click on the appropriate K-1. Go to Colorado Form K-1 (EF Only) if marked as a Nonresident then check only ONE checkbox composite, Form DR107, Excluded Nonresident, or SALT Parity election.

Checking 2 of the boxes in this section will trigger the diagnostic.

Critical, will prevent e-file transmission.

[sjrcpa]

Yes there should be both CA and CO K-1s.

[brent]

Thank you sjrcpa.  I should have been more specific. Lacerte is generating correct Fed, CA, and CO K-1s, as it does readily with multi-state pship returns.  We have checked the composite return box (and only that box) on each CO K-1.  They generate fine with the tax return, but we still get the above diagnostic. It looks to me like CO wants composite filers to generate a separate electronic K-1 file for each non-resident partner in order to e-file, presumably so they can match the Pship's tax payment to each partner.

See input screen 23, "Passthrough K-1's,"in the section titled "Colorado Form K-1 (e-file only)," where it says "NOTE: Entries in all Colorado partner input sections below do not impact amounts on the Colorado tax return.  These input sections are used to create an electronic copy of the CO DR 0106K."And also screen 37, "St. Misc Info," in the section titled "Colorado Miscellaneous," where the first field is for: "K-1s are being sent to state by: 1=online, 2=mail." 

Since the CO K-1s are already being generated correctly, and the whole return is e-filed, it seems tremendously redundant to complete screen 23 for every partner to manually create a second electronic CO K-1 file just for CO's convenience.  Seems as onerous as generating multiple 5471s.  If anyone has relevant CO experience, please opine or advise.  Otherwise CO is getting a paper return.

Thank you,

Brent       

[PerfectlyBal]

In Proconnect: 

State & Local - CO Schedule K-1 Overrides - Colorado Miscellaneous - Check the box you want there. I had to do this for all three of my partners that do not live in CO.