Schedule K-2 and K-3 Update (Completed)

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.

Topics Covered

• United States Tax Reporting for Foreign Activities
• Schedules K-2 and K-3 General Requirements
• Form 1065
• Form 1120-S
• Form 8865
• Notices/etc. regarding Schedules K-2 and K-3

Learning Objectives

• Identify the general requirements for Schedules K-2 and K-3
• Recognize each part of the form and who is required to meet reporting standards
• Describe the relief options available for incomplete Schedule filing

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic experience with tax preparation.

Advance Preparation
None