Understanding the New Forms K-2 and K-3

Author: Allison McLeod

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 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

Schedules K-2 and K-3 for reporting partners' income, deductions, and credits from foreign activity are now required for passthrough returns (Form 1065, 1120-S and 8858). This requirement starts with returns with a tax year that ends in 2021. This course will discuss each part of these schedules and explain these new reporting obligations in detail.

Publication Date: January 2024

Topics Covered

• Background — Schedules K-2 & K-3
• 2023 Changes to the K-2/K-3 Instructions
• Domestic Filing Exception (DFE)
• Observations
• IRS Frequently Asked Questions
• AICPA Comments to Draft Instructions
• Corporate Transparency Act (CTA)
• Additional Updates

Learning Objectives

• Recognize the purpose of Schedule K-2 and Schedule K-3
• Recognize the components of each form and the areas which will need to be completed
• Identify these new forms that affect partnerships and S Corporations
• Identify when they must be filed
• Identify which taxpayers need to complete these forms

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None