AI K1 Form Routing Agent

How Cassidy automates K-1 processing using AI

Step 1: Trigger on K-1 arrival

The Workflow activates when a K-1 document lands in a designated email inbox, secure portal, or SFTP folder—logging the document against expected ownership records and flagging new or amended filings.

Step 2: Classify and extract K-1 data

Cassidy identifies the form type (1065, 1120-S, 1041, state equivalents, K-2/K-3), extracts issuer and recipient details, ownership percentages, capital accounts, and line-item amounts, then parses narrative footnotes for special allocations and adjustments.

Step 3: Validate and enrich

The Workflow reconciles extracted data against capital account rollforwards, updates basis and at-risk worksheets, maps state-source items and PTET credits, and flags low-confidence fields or capital account mismatches for human review.

Step 4: Route to the right preparer

Cassidy matches each K-1 to the correct return and jurisdiction workstream using your routing rules, then auto-creates tasks for preparers with complexity indicators and SLA deadlines attached.

Step 5: Generate import files and workpapers

The Workflow produces import-ready files for your tax prep software, updates basis limitation schedules, and attaches source PDFs to your document management system.

Step 6: Distribute to investors

Cassidy delivers finalized K-1 packages to investors via secure portal or encrypted email, captures e-delivery consent and read receipts, and logs distribution confirmations for your audit trail.

Step 7: Track status and handle amendments

A live dashboard surfaces missing K-1s, exception aging, and turnaround metrics. When amended K-1s arrive, Cassidy versions the data, recomputes impacted returns, and notifies stakeholders automatically.