NEW YORK (HedgeWorld.com)–HedgeTek, a partnership allocation and tax-reporting system used by fund managers and administrators, has been linked to Web-based GoSystem Tax RS so that users can file electronically Form 1065 and Schedule K-1 for hedge funds and other investment partnerships.
The combination allows straight-through tax processing without the need to retype information or manipulate spreadsheets, according to a statement from Edison, New Jersey-based Fi-Tek LLC and RIA, part of Thomson Corp., Stamford, Conn.–the suppliers of the two products.
The firms announced that Ernst & Young LLP intends to use the combined system for its hedge fund tax preparation work.
“Fi-Tek and RIA have greatly enhanced efficiency and decreased the possibility of errors in the complex hedge fund tax return preparation process by linking the products and automating a previously highly manual and labor intensive process,” said Fi-Tek chief Barry Mermelstein, in a statement.
The K-1 schedule, filed for investors in partnerships like hedge funds, recently was revised by the Internal Revenue Service after a government program to match partnership income to tax returns wrongly identified many taxpayers as having failed to report income.