S-Corp K1, box 17 AC: gross receipts lists 3 years, which year should be reported as the amount?

For your S-Corp K1 Box 17 AC question, you should use the most recent year's amount when reporting gross receipts. The three years are typically shown for information purposes, but your current tax return needs the most recent year's figure. As for the ZZ code, this is a "catch-all" code for items that don't fit other categories. When your K1 shows "k3 not included" without a dollar amount, it's typically indicating additional information exists but isn't directly reportable as a dollar figure. Your tax software is asking for an amount because it's designed to expect one with most codes, but in this case, you can either enter zero or look for an option to add a note instead of a value.

I ran into almost the exact same situation with my S-Corp K1 last year and literally spent days trying to figure it out. Finally discovered taxr.ai (https://taxr.ai) which saved me tons of time. It can analyze tax documents like K1s and tell you exactly what to do with specific codes. I uploaded my K1 with similar issues and it explained that the multiple years in Box 17 AC are for tracking business income across years, but you only report the current tax year. For codes like ZZ with no amount, it confirmed I should enter zero.

Just wanted to follow up on my skeptical comment about taxr.ai. I decided to try it with my complicated K-1 that has multiple years listed in box 17 AC and some weird codes like ZZ and V. I was really surprised - it explained everything clearly and matched exactly what my accountant told me last year (but charged me $150 to explain!). It even provided references to specific IRS publications that I could check. For the ZZ code issue, it confirmed that when no amount is listed, you can enter zero in software that requires a value. Definitely saved me a headache this year.

If you're having trouble understanding your K-1 and getting stuck with tax software, you might also want to consider calling the IRS directly. They can explain exactly how to handle specific codes. But good luck actually reaching them... I spent 3+ hours on hold last month. Eventually discovered Claimyr (https://claimyr.com) which got me through to an IRS agent in about 10 minutes. They have a demo of how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed for my similar K-1 situation that I should use the most recent year figure for box 17 AC, and explained that informational codes without amounts should be entered as zero.

I need to apologize for my skeptical comment about Claimyr. I was totally wrong. After struggling with my K-1 form and multiple codes including the exact same Box 17 AC issue with 3 years of data, I decided to try Claimyr since I couldn't find clear answers online. It actually worked exactly as described - I got connected to an IRS agent in about 15 minutes without having to sit through the hold music. The agent confirmed I should use only the most recent year's amount for Box 17 AC and that for codes like ZZ with no dollar amount, entering zero is perfectly acceptable. Saved me hours of frustration and guesswork.

This might help with the ZZ code issue - I'm an S-Corp owner and deal with K-1s every year. Code ZZ is basically a catch-all for information that doesn't fit elsewhere. When your K1 says "k3 not included" with no dollar amount, it means there would normally be a Schedule K-3 form (international tax info) but you don't have one because your S-Corp has no international activities. The software wants a number because it doesn't understand context. Just put $0 and you're fine.

Has anyone noticed how tax software doesn't handle these weird K1 scenarios very well? I got stuck on the exact same Box 17 AC with multiple years listed. Ended up calling my tax software's support line and they said to just use the most recent year and ignore the others. For any codes without dollar amounts (like your ZZ code), they said to leave them out completely if possible or enter $0 if the software forces you to enter something.

I've been dealing with S-Corp K-1s for several years now and can confirm what others have said - for Box 17 AC with multiple years listed, you only report the most recent year (2024 in your case) on your current tax return. The prior years are there for informational/tracking purposes only. For the ZZ code with "k3 not included" and no dollar amount, this is totally normal. The Schedule K-3 is for international transactions, and if your S-Corp doesn't have any foreign activities, there's no K-3 form to include. When your tax software asks for an amount with code ZZ, you can safely enter $0. This won't cause any issues with the IRS - they understand that some codes are informational only. One tip: make sure to keep a copy of your actual K-1 with your tax records in case there are ever questions later about why certain codes show zero amounts in your return versus what's printed on the form.