Now that practitioners have struggled through the initial preparation of Schedules K-2 and K-3, the IRS recently released instructions for the 2022 schedules which, thankfully, include many changes. First and foremost is an exception to completing Schedules K-2 and K-3 for certain domestic entities. To qualify, a partnership must have no or limited foreign activity, its partners must be U.S. citizens or resident aliens, the partnership must timely notify partners that they will not receive Schedule K-3, and no partner can request Schedule K-3 up to one month before the filing deadline--February 15th is the deadline for 2023.
The updated instructions clarify when research and experimental expense apportionment needs to be reported and add a new country code XX. Many other revisions have been made that hopefully will ease tax practitioners' reporting burden.
Listen as our panel of international tax experts explains how to complete Schedules K-2 and K-3, including the latest revisions made to these schedules.
To register for the webinar, click on the following link: https://www.straffordpub.com/products/preparing-schedules-k-2-and-k-3-new-domestic-filing-exception-2022-revisions-reporting-foreign-activity-2023-01-31