Ill. (Feb. 20, 2013) – Crowe Horwath LLP, one of the largest public accounting
and consulting firms in the U.S., has introduced the Crowe K-1 Navigator, a
tool that helps streamline tax-reporting processes. Schedule K-1s are required to
report investor allocations to owners of flow-through entities which are legal
business entities such as partnerships and S-corporations that pass income on
to the owners or investors.
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.
to Jordan, benefits of the Crowe K-1 Navigator include:
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.
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