Entry for K-1 Box 17, Code I

Turbotax does not do form 8697. You have to complete it manually. read the instructions, especially the filing instructions on page 2

Thanks for the reply @Mike9241 .

I understand I need to do form 8697, report the interest on my 1040, and then include with my return.

Two followups:

* What do I put in TurboTax for Box 17... Just leave it blank?

* The instructions detail reporting the interest on the underpayment, but what about the actual under payment. Is that built into the profit already reported on the K1?

Yes, enter the information for Form 1120S Schedule K-1 Box 17 Code I as it appears, including the amount of interest due. On the next screen, TurboTax will provide generic instructions on how to enter Code I, which is essentially following whatever guidance is provided with your K-1.

To report the results from Form 8697 on Schedule 2 (Form 1040) Line 17(n):

1. In TurboTax, search for "Other Taxes." 
2. Enter the look back interest from Form 8697.
3. This amount will be transferred to Schedule 2 Line 17(n) and included on Form 1040 Line 23 "Other Taxes."

@jmdetwiler