Schedules K-2 and K-3 have been an ongoing source of consternation for tax practitioners since draft Schedules were released in mid-2021. First required for the 2021 tax reporting year, they require completion for any partnership, S corporation, or Form 8865 filer with items of “international tax relevance”. Critically, this standard has been interpreted expansively by the Service. Entities with no foreign source income, no assets generating foreign source income, and no foreign taxes paid or accrued may still need to report information on Schedules K-2 and K-3 based merely on stakeholder-level eligibility for foreign tax credits.
Instructional MethodGroup: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program PrerequisitesBasic experience with tax preparation.