This is something we see each year. I tend to think of it as a rookie mistake, since it usually doesn't happen twice to the same person. The treasurer sits down to do their taxes, diligently steps through each of the questions in the tax printer, and gets to the end, only to discover that there are no k-1 forms, or that the only forms are for members who left the club during the year. The two main reasons we see for this are a missing valuation at the end of the year, and/or a missing end of year allocation. Following is the note we have put together on how to correct these slight mis-steps:
For Club Accounting 3:
There are two possible reasons for no K-1s or K-1s only for withdrawn members:
1. There is no valuation on 12/31
2. There is no Allocation of Income and Expenses (Distribution of Earnings) for the tax year
1) If there is no valuation saved on 12/31, generate a valuation on that date:
Go to Valuations. Click NEW VALUATION
Enter the date as 12/31 of last year.
Download the prices (or enter by hand if you wish) and then click OK to save the valuation.
2) Run the Allocation:
Go to TOOLS > ALLOCATE INCOME AND EXPENSES
Choose last year from the drop-down menu.
Fill in dividend and Unrecaptured section 1250 gains (if appropriate) for any non-standard stock listed, then click OK to complete the allocation.
After the Allocation is generated and verified, return to the Taxes menu, select the appropriate year, and regenerate the tax forms.
Once this is done, all members who were active during the year will have K-1s available.
For Club Accounting Online at myICLUB.com:
There are two possible reasons for no K-1s or K-1s only for withdrawn members:
1. There is no valuation on 12/31
2. There is no Allocation of Income and Expenses (Distribution of Earnings) for the tax year
1) If there is no valuation saved on 12/31, generate one for that date:
go to ACCOUNTING > SECURITIES > CREATE NEW VALUATION
Enter the date as 12/31 of last year.
Click CONTINUE
Make sure all of the stocks listed show a price, and click SUBMIT.
2) Run the Allocation:
Go to ACCOUNTING > UTILITIES > ALLOCATE INCOME AND EXPENSES
Choose last year from the drop-down menu, and click YES to continue
Fill in dividend and Unrecaptured section 1250 gains (if appropriate) for any non-standard stock listed, then click OK to complete the allocation.
The allocation is now complete.
After the Allocation is generated and verified, go to TAXES > RUN > REGENERATE
Make sure to click the Regenerate button near the bottom of the page, otherwise the tax forms will still be the ones that were created without the completed allocation.
Once this is done, all members who were active during the year will have K-1s available.