K-3

Forum|Forum|4 years ago
March 9, 2022
32 replies
119 views

Turbox Tax will not let me file my 2021 tax return because I have checked the partnership has a K-3. How can I file my tax return now until the K-3 issues are resolved by the IRS,

PatriciaV

Level 15

It depends. For some taxpayers, the IRS has announced that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return. If your K-1 does not report foreign activities for Schedule K-3, you can uncheck the box (14 on 1120S, 16 for 1065) and e-file now.

However, if your K-1 does report foreign activities, you are required to include Schedule K-3. You have the option to uncheck the box, e-file now, and amend your return later. Or you can file an extension and check back later in the year to see if Schedule K-3 is available.

Please note that the issuance of a K2/K3 is not a Turbo Tax issue, it is a IRS issue. According to the IRS, these are the release dates for these forms, based on type of Business Entity.

Form 1065 March 20, 2022

Form 1120-S Mid-June 2022

Form 8865 January 2023

For more info, see this IRS link.

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clnewha1

Level 2

Patricia,

The schedule K 3 I am waiting for will not come till end of August 31. 2022. I'm not sure if I am required to include it or not when filling. Where on the K 1 does it show it does report foreign activities? Also we can file now without it and amend it later when we receive the schedule K 3?

AliciaP1

Level 13

Yes, you can still file the return by unchecking the box, but there may have to be an amendment filed when the K-3 is available. The IRS announced on February 15, 2022, that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return filing, but they have not reported how taxpayers should proceed.

Per the IRS:

The IRS intends to provide certain additional transition relief for this year from the Schedule K-2 and K-3 reporting for certain domestic partnerships and S corporations with no foreign activities, foreign partners, or shareholders, and without knowledge of partner or shareholder need for information on items of international relevance. For 2021, these qualifying domestic partnerships and S corporations will not have to file the new schedules. We are taking this step in response to feedback we received from the tax community and our stakeholders. The IRS will provide full details of this relief soon.

@clnewha1

@fred1986

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The Bippus Crusader1

Level 2

TurboTax Form K-3 for Form 1120S should support multiple country codes. At this time, it seems that only one country code at a time can be selected. Am I missing something? If the K-3 I was provided has multiple country codes, how can I enter the data for such on TurboTax K-3?

If it is not supported now, will it be supported for 2021 taxes in the future? If so, when?

I am using the CD version of TurboTax Deluxe for 2021 taxes.

PatriciaV

Level 15

The option to report more than one foreign source has been forwarded to our tech support for implementation in the future.

For now, you will need to create a separate K-1 for each country. Only the header information is needed (and should be the same for all K-1s). Enter no income, check the box for Schedule K-3, and enter only the information for that country.

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The Bippus Crusader1

Level 2

In addition to supporting multiple country codes, it should not be necessary to create separate K-1s for the information contained in separate columns on the K-3. For example, just because the K-3 contains data for both column c and column d for line 24 should not necessitate the creation of two K-3s.