Info Reporting for Foreign Activities of U.S. Partnerships and Partners on Schedules K-2 and K-3

Author: Robert J. Misey

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Not requiring the payment of tax, the Schedule K-2 (for partnerships) and the Schedule K-3 (for partners) compile the necessary items of international tax relevance so partners can report their share of various foreign items. This course will teach you the information necessary to prepare these forms for your partnership clients and their partners.

Publication Date: September 2024

Topics Covered

• Review of U.S. international outbound tax rules for business
• Discussion of fundamental U.S. international tax reporting rules and obligations of U.S. partnerships and their partners
• Purpose of Schedules K-2 and K-3
• Structure and preparation of Schedules K-2 and K-3
• Treatment of cross-border activities and transactions
• Completing Schedules K-2 and K-3

Learning Objectives

• Identify the compliance objectives of the Schedules K-2 and K-3
• Explain when the domestic filing exception avoids compliance
• Identify the part of Schedule K-2 that relates to the Foreign Tax Credit Limitation
• Identify what percent of the Qualified Business Asset Investment is Deemed Tangible Income Return
• Identify the type of taxpayer that translates foreign income taxes accrued into U.S. dollars at the average exchange rate for the tax year

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None