Understanding the New K-2 and K-3 Filing Requirements

Author: Allison McLeod

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC

Schedules K-2 and K-3 for reporting partners' income, deductions, and credits from foreign activity is 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 obligation in detail.

Schedules K-2 and K-3 are promulgated by the IRS in order to standardize the reporting of foreign-related tax information for pass-through entities. Even passthrough entities that have no foreign activities, investments, or partners may have a reporting requirement. This course will present an introduction to Schedules K-2 and K-3, review the filing requirements, and discuss the different parts of the schedules and what needs to be included.

Publication Date: March 2022

Designed For
This course is suitable for Corporate tax and finance executives, directors, managers and staff, CPAs, Enrolled Agents, accountants, attorneys and business/financial advisors who work with and advise individuals or businesses that use or invest in cryptocurrency. All in-house and public practice professionals involved with tax compliance and who want up-to-date information on partnership and S corporation taxation.

Topics Covered

  • Overview
  • Transition Relief
  • IRS Frequently Asked Questions
  • Other Issues
  • AICPA Comments

Learning Objectives

  • Identify 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 the new forms that affect partnerships and S Corporations
  • Recognize when forms must be filed
  • Identify how to determine which taxpayers need to complete these forms
  • Recognize which Parts of Schedule K-2 relates to distributions from foreign corporations to partnership
  • Recognize which Parts of Schedule K-3 includes information on a partner's Section 250 deduction
  • Describe the penalty amount assessed for each insufficient Schedule K-1 for the 2020 tax year for failure to provide all required information

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of tax preparation.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $62.00

">
 Chat — Books Support