Using the Federal Tax Printer
This Tax Printer program works using your Club data performing certain calculations, and then generating tax forms with these calculated values. The program does not alter your original club data stored within, although you may want to make a back-up of your data before running the Tax Printer. To properly use this program, you must make sure your accounting records are up-to-date.
The following steps describe how to use the tax printer. If you are looking for where to send the forms once they are completed, please see our Where do I file the tax forms FAQ.
Preparing the Club Data
Before generating your tax forms, you should make sure that your club accounting data is properly prepared. It is recommended that you wait until you have all the necessary data and have performed a reconciliation of all the partnership accounts before completing your taxes. Necessary data includes your year-end broker's statement, year-end bank statement, all buys, sells, dividends, interest, and service charges through Dec. 31. Once you have all the necessary data and have performed a reconciliation, close out the books for the year:
A) If your club owns (or sold in tax year) investments in REITs, mutual funds, or "other" (Limited or Publicly Traded Partnerships, etc.) securities, you must make sure that they are correctly identified in the database.
- In Club Accounting, select the Securities heading on the left hand side of the screen.
- Double-click any security which would not be considered a common stock
- For the Type of Security drop down menu, select the appropriate type of security; if you aren't sure, simply select Other.
- Click OK.
- Repeat step 4 for all REIT, mutual fund, or other securities.
B) If your club received any dividends in tax year, you must enter the ex-dividend date for each dividend received. The ex-dividend date can usually be found at the corporation's investor relations web site and in various financial publications. You can check your transactions as follows.
- Click the Transactions heading on the left hand side of the screen.
- Under this heading, Search Transactions.
- Change the start and end dates to be the beginning and end of the previous year.
- Do not make any selection in the Limit to this Account drop-down menu.
- Under Limit to this Security, put a check-mark in the Show Inactives check-box
- In the Limit to this Security drop-down, select All Securities.
- In the list of transactions, double-click on any Dividend transaction.
- Make sure that the Ex-Dividend Date is earlier than the Date of the Dividend transaction.
- If you aren't sure of the date, you can click the Find It link next to the Ex-Dividend date drop-down menu.
- Click OK to save the transaction.
- Repeat these steps for all dividend transactions.
NOTE: You do not need to enter an ex-dividend date for any securities which you have marked as anything other than a Common Stock.
C) Enter valuations for 12/31/.
- Click the Valuations heading on the left hand side of the screen.
- If you already have a valuation for 12/31, skip to section D, below. If not click New Valuation at the top of the list.
- In the Enter new valuation, enter 12/31 of the previous year.
- Click Download Prices.
- Confirm that all securities have prices, and click OK.
D) Run an Allocation of Income and Expenses report for the tax year.
- Go to the Tools menu, and select Allocate Income and Expenses.
- Use the Year of allocation drop-down menu, and select the previous year.
- Click OK, and then OK again when the reconcile is complete.
Tax Printer Step-by-Step Help
Detailed help can be found on the IRS website's partnership page:
Standard Club Information
- Legal mailing address of club: Enter your clubs legal address, as it is registered with the Federal Government.
- Date business started: The date your club was founded.
- Check box for an amended return: Do not use unless you have already submitted forms to the IRS and need to re-submit them for any reason.
Tax Prep Questions
Type of partnership:Most clubs are formed as general partnerships.
Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership Place a check-mark in the box if this was the case for the club at any time during the year.
- Before leaving this unchecked, be aware of partnership constructive ownership rules. An individual is considered to own an interest owned directly or indirectly by or for his or her family. The family of an individual includes only that individual's spouse, brothers, sisters, ancestors, and lineal descendants. If you check this item, fill out, manually, the information requested in Part II of Form 1065 Schedule B-1.
- Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year
- If your club had ten or fewer partners throughout the tax year (husband and wife counts as one partner; with no partners being non-resident aliens, a C corporation, or the estate of a deceased partner), you may elect to answer Yes to this question. If you select yes, Form 8893 will be generated by the software (file with your return when complete), also enter your designated TMP information below. (If you previously filed Form 8893 with the IRS, check the box, enter your TMP information, but do not file another form 8893.) You may also choose not to make this election, see IRS 1065 instructions page 20 for more detail.
- If your club had more than ten partners at any time during the tax year (see guidelines above) then your club is already subject to Partnership Level Tax Treatment and would answer 'No', but may still provide the name of your club's designated TMP below, if desired (usually the Treasurer).
- Is this partnership a publicly traded partnership as defined in section 469
- Most clubs will leave this blank, as they are not traded on the open market.
- Does the partnership satisfy all four of the following conditions
--Most clubs will put a check-mark here
- The partnership's total receipts for the tax year were less than $250,000.
- The partnerships total assets at the end of the tax year were less than $1 million.
- Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.
- The partnership is not filing and is not required to file Schedule M-3
- During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt
---Mark appropriately. Most clubs will leave this unchecked.
- At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property
--This is specifically in reference to property; most clubs should leave this blank.
- If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached: ---Mark appropriately. Most clubs will leave this blank.
- At any time during the calendar year, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account or other financial account)
---See page 20 of the IRS instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes" enter the name of the foreign country in the text box.
- Does the partnership have any foreign partners If "Yes", enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership: ---Mark appropriately. Most clubs will leve this blank.
- Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return: ---Mark appropriately. Most clubs will leave this blank.
- IRS Center - Choose the IRS center that your forms will be sent to. If you are not sure, click the Where Do I File button
Select forms to generate
Select the forms to generate. For most clubs, this will be the 1065, Schedule D, and all member K-1 forms. If the club only needs to re-print certain of the forms, that can be selected here.
1099-B Cost Basis Status
Starting with the 2012 tax printer, the IRS is asking clubs to compare their recorded cost basis against the cost basis reported by the broker for any stocks that were sold during the year.
For each block of shares sold, clubs will need to either:
- Enter the reported cost basis from the broker.
- Report that the broker did not record a cost basis for a sale
- Report that they did not recieve a 1099 for for a sale
More on the specifics of each column can be found on our web site at:
Click OK on the 1099-B cost basis screen, and the filled out forms will appear on screen.
If you do not have the Adobe Acrobat Reader program for reading PDF type files please download Adobe Reader from the Adobe web site at:https://www.adobe.com/downloads/