AI-powered solution will alleviate manual work associated with Schedule K-1 forms
Thomson Reuters and Crowe LLP announced an innovative collaboration to help tax professionals address the burdensome manual work related to Schedule K-1 forms. The significant increase in the number of alternative investments over the past decade has led to a growing number of K-1s. More than 40 million K-1 forms are produced annually, each one requiring manual data capture and aggregation into partner tax returns, resulting in countless hours of complex manual work for tax professionals.
The K-1 Analyzer tool uses artificial intelligence and machine learning to read, extract and analyze K-1 data from front to back, including statements and disclosures. This process virtually eliminates the manual data-entry work associated with K-1s and enables recipients to aggregate their stack of K-1s in minutes, rather than days. In addition, because of the embedded project management tools, guided process and data analytics, firms can feel confident that they’ve mitigated federal, state and international tax risk associated with K-1 investments for current year filings and planning for years to come.
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“The continual demand to maximize efficiency is driving innovation in our industry and increasingly creating new opportunities to collaborate across our industry for the betterment of our entire profession,” said Charlotte Rushton, president, Tax & Accounting Professionals at Thomson Reuters. “Our collaboration will bring value to tax professionals by combining Crowe’s extensive tax experience and a solution that uses a machine learning model trained with more than 100,000 K-1s with Thomson Reuters’ trusted expertise in tax technology.”
By automating this manual data entry, tax professionals will have more time to devote to value-added work such as strategic advisory and advanced analytics, market insights, and operational intelligence, which will ultimately result in more meaningful relationships with clients and stakeholders.
“Crowe combines leading-edge technology such as artificial intelligence, machine learning, data analytics and process automation with our deep tax expertise to create tools that help ease compliance and improve efficiency,” said Gary Fox, managing partner of tax services at Crowe. “We’re excited to share our K-1 Analyzer tool and collaborate with Thomson Reuters to make an even broader impact on the profession and help tax organizations transform their data aggregation and processing practices.”
Thomson Reuters and Crowe will both be speaking at the Tax Executive Institute (TEI) 2020 Tax and Technology Seminar in Scottsdale, Arizona, February 24-26.