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I am experiencing a similar issue. The error code preventing me from filing my return is "Fgn Tax Code Ln2 col 3 is listed but no foreign source income at individual level has been listed on the K-1 additional information worksheet line 1" related to foreign (Canadian) interest expense allocated at the partner level.  I have confirmed with the CPA's preparing the K-1's that the information is accurate.  None of the drop down options offered on that line are appropriate.  Help please?