Accounting and consulting firm Crowe Horwath LLP has introduced Crowe K-1 Navigator, a tool that helps streamline Schedule K-1 tax-reporting processes for flow-through businesses such as partnerships and S corporations.
New guidelines from the Internal Revenue Service require consent for electronically distributing an owner’s tax information, complicating the compliance process. The Crowe K-1 Navigator is a Web-based application that guides organizations through the process, from collecting data to building customized Schedule K-1s.
The K-1 Navigator aims to help organizations with the filing of K-1 forms, particularly those with numerous owners or that conduct business in multiple state or local tax jurisdictions.
“The Crowe K-1 Navigator captures investor data directly from each owner and helps determine specific withholding requirements,” said Rebecca Jordan, a leader in Crowe’s federal tax practice. “The Crowe team also continuously monitors for tax code changes and updates the program with IRS tax code revisions, as well as those from state and local taxing authorities. These preventative measures help make sure our clients pay the appropriate amount the first time, rather than overpaying and trying to recoup money later.”
Using the Crowe K-1 Navigator individual owners log on to the K-1 portal and answer a short series of questions. The collected data is analyzed to report subchapter K allocations, unrelated business taxable income, and other information needed for state filings and international disclosures.
Once the Schedule K-1s are ready, they are delivered electronically to the individual investors through the same portal. Investors then have access to their documents 24 hours a day and can easily share them electronically with their own tax advisors.
The Crowe K-1 Navigator offers the ability to review investor data, along with customized creation of Schedule K-1 packages, including a summary of composite and nonresident withholding payments. The software includes an audit trail that allows K-1 issuers to see when a recipient has accessed their Schedule K-1. Users also get access to the Crowe help desk.
For more information, visit www.crowehorwath.com/k1navigator/.