K1 - Box 16 checked but not Foreign Income

I have a partnership K1 with box 16 checked but do not have Foreign Income. The K1 has RIC income from a REIT and RIC is one of the pull down choices instead of a country source for the income when entering K3 information. Despite choosing RIC there is still a warning with Smart Check :

Sch K-1 Wks-Partnerships: Box 16 is checked but there are no entries in the Schedule K-3 Foreign Transactions Smart Worksheet.

Any suggestions on how to resolve the Smart Check error?

Thanks in advance.

1339

Expert Alumni

Mar 28, 2022 6:12:36 AM

If you had no foreign income from the K-1, you can uncheck box 16. Form K-3 is not necessary for tax year 2021.

Please read this IRS document for more information.

Level 2

Apr 5, 2022 11:45:09 AM

How and where do I uncheck Box 16, electronically?

Level 2

Apr 5, 2022 1:49:42 PM

This may be done in the forms view for the K1

Level 2

Apr 5, 2022 7:07:16 PM

Please, Where in the Forms do I find what I need to change?

Level 2

Apr 6, 2022 3:50:20 AM

In the top level menus, one can choose to view the FORMS. Go to the K1 form involved. Item 16 will have a checkbox on the right, just uncheck it if that is what you believe is the correct way to complete your tax return.

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K1 - Box 16 checked but not Foreign Income