Schedule K-1s need to be individualized. The calculations needed to complete the form for each investor traditionally have been developed manually, which might lead to errors. Additionally, new Internal Revenue Service (IRS) guidelines require consent for electronically distributing an owner's tax information, which further complicates 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.
According to Rebecca Jordan, a leader in Crowe's Federal Tax practice, the K-1 Navigator is particularly helpful for organizations 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. 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," she said. "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 is relatively simple. 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 (UBTI), 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.
According to Jordan, benefits of the Crowe K-1 Navigator include:
- Faster turnaround to meet filing requirements;
- Ability to review investor data;
- Customized creation of Schedule K-1 packages, including a summary of composite and nonresident withholding payments;
- Less time spent exchanging information;
- An audit trail that allows K-1 issuers to see when a recipient has accessed their Schedule K-1;
- A secure tool for communicating with investors; and
- Access to the Crowe help desk.
For more information on the Crowe K-1 Navigator, please visit: www.crowehorwath.com/k1navigator/.
About Crowe Horwath
Crowe Horwath LLP (www.crowehorwath.com) is one of the largest public accounting and consulting firms in the United States. Under its core purpose of "Building Value with Values®," Crowe uses its deep industry expertise to provide audit services to public and private entities, while also helping clients reach their goals with tax, advisory, risk and performance services. With offices coast to coast and 2,600 personnel, Crowe is recognized by many organizations as one of the country's best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world, consisting of more than 150 independent accounting and advisory services firms in more than 100 countries around the world.
SOURCE Crowe Horwath LLP