Understanding Forms K-2 and K-3
Date: Wednesday, December 2, 2026
Instructor: Allison McLeod
| Begin Time: |
11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Forms K‑2 and K‑3 have dramatically expanded foreign reporting requirements for pass‑through entities—including partnerships, S corporations, and certain foreign entities filing Form 8858. These schedules are now essential for reporting international tax items such as foreign tax credits, foreign‑source income, and other cross‑border activities.
This course provides a clear, practical walkthrough of each section of Schedules K‑2 and K‑3, highlighting IRS instructions, filing requirements, exceptions, and common compliance challenges. Participants will learn how to determine when the forms are required, how to apply the domestic filing exception, and how to accurately complete, interpret, and deliver these forms to partners and shareholders. Designed for tax professionals working with passthrough entities, this session equips attendees with the knowledge needed to navigate one of the most complex areas of modern federal tax reporting.
Who Should Attend
This course is ideal for tax professionals responsible for preparing, reviewing, or advising on passthrough entity tax filings.
Topics Covered
- Purpose and function of Schedules K‑2 and K‑3
- Detailed walkthrough of IRS instructions and reporting requirements
- Domestic Filing Exception: criteria, timelines, and documentation
- Common reporting challenges for partnerships and S corporations
- Coordination with Forms 1116, 1118, and international tax calculations
- Best practices for preparing, reviewing, and delivering Forms K‑3 to owners
- Other considerations for cross‑border activity reporting
Learning Objectives
- Identify the purpose and scope of Schedules K‑2 and K‑3 in foreign income and international tax reporting.
- Determine which taxpayers and pass‑through entities are required to complete and file the schedules.
- Review key components of each form and understand which parts must be completed based on the taxpayer’s facts.
- Apply IRS instructions and guidance to accurately prepare and file Schedules K‑2 and K‑3.
- Analyze the practical impact of the schedules on partnerships, S corporations, and their owners.
- Interpret the requirements and eligibility criteria for the Domestic Filing Exception.
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
