Can I file tax return now without Sch K-3 data since it will not be available until June 2025 from a partnership and amend my return later in June once I receive the K-3?

[b2babmason]

I have a Sch K-1 that has a block checked indicating a Sch K-3 is attached, but will not be available until June 2025.

[PatriciaV]

It depends. If you believe Schedule K-3 will report sufficient income to affect your taxable income for the year, you may choose to request an extension of time to file. But if you believe the information from Schedule 3 won't apply to you or won't significantly change your taxable income, you may choose to file your return now and amend your return if necessary when the forms arrive.

In most cases, the foreign income reported on Schedule K-3 is either already reported on Schedule K-1 or only applies to partners with other foreign income and/or assets.

If you chose to file now, uncheck Box 14/16 from Schedule K-1 to clear any federal review issues in TurboTax.

[b2babmason]

Yes. Unchecking the K-3 box seems reasonable. I was concerned that might trigger an error if IRS already has my K-1. So I chose to not include K-1 now and amend later when I have the K-3. 
Thanks for your insight on low significance of K-3.

[Ciao4]

Hi,

I have the same situation.

If I understand correctly, you will not enter at all the Schedule K-1 when you file return on/by April 15th.

When the Schedule K-3 arrives in June you will file an amended return and add the K-1 and the K-3.

Is that correct?

If you do include the Schedule K-1 and do not check box 16, you will avoid the errors from the TurboTax check, but the IRS may see Box 16 is unchecked in your return and may throw red flag since they a copy of your Schedule K-1. Is that correct?

[PatriciaV]

Since Schedule K-1 Box 16 indicates that Schedule K-3 should have been included, it's unlikely the IRS would reject a return because the box wasn't checked. Schedule K-3 is used by partners with foreign income, which tends to be in the minority.

Ultimately, the taxpayer needs to decide if the income from Schedule K-1 has sufficient impact on their taxable income that they wish to report now. Also, if there would be no impact from the information on Schedule K-3 (no foreign income/taxes), waiting would not change the outcome.

@Ciao4 

[needhs]

My K-3 won't be ready until June 2025 also.

They did this to me last year and I had to pay to Amend my return.  This year I went with TT desktop.  I guess I will have to file the extension.

There are requirement dates for companies to send out all tax documents.  Is the K-3 different?  Is it legal for them to wait until June to send out tax info?  I didn't even get the K-1 until last week (so a month before tax day).

[PatriciaV]

Schedules K-1 and K-3 are part of the complete partnership return when filed and are required to be sent to the partners by the filing due date.

According to the IRS Instructions for Form 1065, "Generally, a domestic partnership must file Form 1065 by the 15th day of the 3rd month following the date its tax year ended as shown at the top of Form 1065. For calendar year partnerships, the due date is March 15."

However, the partnership can request an extension of time to file that adds six months to the filing deadline. If granted, the extension would change the due date to September 15.

@needhs 

[Ciao4]

I got discouraged and went to an accountant. He did not fill out Form 8990.

But he did fill out Schedule 1, Schedule E and Form 8582.

Do you agree with this?

Some of my K-1 info

I do not have foreign taxes paid or accrued.

Box 1 $ -5 negative

Box 6a and 6b $2

Box 13K $2

Box 16 is checked

Box 20 A$2 N $8n V $-5