How do I generate or edit the 1065, 1120S, or 1041 K-1 or Grantor Letter (K-1 Letters)?
Generate a K-1 Cover Letter Globally:
- Go to Setup > Options > Client Communications tab from the Drake Home window.
- Under the Additional Letter Options section, select Include K-1 letter with returns (the last checkbox in that section).
- Choose what information prints on the K-1 Letterhead in the drop list. Choices include:
- Print Entity Information
- Print firm logo and letterhead
- Do not print entity or firm information
- Click OK to save changes.
The letter signatory is the Tax Matters partner (1065) or the entity (1120-S/1041). Use step 2 below to override the signatory and other information used on the K1 cover sheet.
Generate or Override a K-1 Cover Letter in a particular return:
- Open the LTR screen in the return.
- At the bottom of the LTR screen, enter the name and title of the person who will be signing the K-1 cover letter.
- The software defaults to entity information on the K1 letter and cover sheet. To change this, select one of the options in the drop down at the bottom of the LTR screen:
- E - Print entity info
- This is the default unless you have made a different global selection in Setup > Options (see above).
- F - Print firm info/logo
- X - Don't print entity information
Note: If K-1 letters are set up globally, the above procedure overrides the letter signatory and header information. If there is no global setup, this procedure generates a letter for all partners in the return receiving a K-1.
Edit a K-1 Cover Letter Template:
As with other letters provided by the program, you can edit the text to suit your office needs and style. Review the following sections of the Drake Software User’s Manual before making changes to letter templates:
- “Introduction to Letters in Drake” in Chapter 2, Installation & Setup.
- The “Letter Keywords” section of Appendix C, Keywords.
To edit the text of the K-1 cover letter:
- From the Home window, select Setup > Communications Editor. The Client Communications Editor opens.
- Select the letter template that you want to edit:
- Open > Partnership > Partnership K-1 Cover Letter to view the template of the partnership K-1 letter template.
- Open > S Corporation > Sub-S K-1 Cover Letter to view the S corporation K-1 letter template.
- Open > Fiduciary > Fiduciary K-1 Cover Letter to view the Fiduciary K-1 or Grantor letter template.
- Make any desired changes to the template.
- Click Save.
Note: For an amended return, the K-1 letter automatically refers to the amended Schedule K-1. To edit the “amended” letter in the Client Communications Editor, select Open > Partnership > Partnership K-1 Amended Letter, Open > S Corporation > Sub-S K-1 Amended Letter, or Open > Fiduciary > Fiduciary K-1 Amended Letter.
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