A Practical Approach to Quickly Filling Out Forms K-2 and K-3

Author: Greg White

The IRS recently updated filing rules on the requirement for S corporations and partnerships to file Schedules K-2 and K-3. All S corporations and partnerships must either file these forms or qualify for an exemption. Greg will cover how to quickly and efficiently file Forms K-2 and K-3 for 99% of your clients. File Forms K-2 and K-3 now for almost all your partnerships and S corporation clients.

Publication Date: February 2023

Topics Covered

• Why does IRS want all this foreign information?
• Dropping the Ball
• Relief
• Tricky Areas
• Why is 1120S K-2 different from 1065 K-2/K-3?
• Strategy
• Schedule K-2 & K-3 Example

Learning Objectives

• Recognize how to prepare Forms K-2 and K-3
• Identify clients who qualify for exemption
• Describe the documenting qualification for the exemption
• Identify how many examples the IRS provides of why partners who complete F1116 would need info from entities that have no foreign activity
• Identify the calculated amount of penalty per month per partner for failure to file
• Identify one of the relief hurdles based on the IRS FAQs

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Basic tax preparation experience.

Advance Preparation
None