Schedule K-1 says attached K-3, but not received yet. Schedule K-1 FAQ says I don't have to attach K-3 to file my taxes. IRS says I do. Any advice?

[DianeW777]

Let's review your options. If there are no international transactions you can uncheck this box and file your return.  See the information for Box 16.

Box 16. International Transactions 

If the partnership checked the box, see the attached Schedule K-3 with respect to items of international tax relevance. If the partnership did not check the box, the partnership attached a statement to the Schedule K-1 (or issued a statement prior to furnishing the Schedule K-1) notifying the partner that the partner will not receive Schedule K-3 from the partnership unless the partner requests the schedule.

If you believe there are international transactions and that you should have a K-3, you should request it from the company. If they are unable to provide it before April 18th, you can choose different options while you wait for it.

1. File now and amend later when you receive the K-3
2. File an extension and pay what you might owe right now and any balance when you file your original return.

@Dave Bar 

[Dave Bar]

Thank You for the response DianeW777.

To reiterate my situation, I did not receive a k3. 

I'd like to take the advice you gave me in number 1. File now and amend later when you receive the K-3

I am somewhat apprehensive after reading advice given online from   

The Wolf Group Global tax advisors

Specifically; "If you do not receive a 2021 Schedule K-3, then you may need to disclose this on your individual tax return to protect yourself against the $10,000 penalty."

They go on to recommend forms 8082 and 8275.

The advice was for 2021, and may have changed but given the enormous penalty I'd really like to know for sure what my liability could be and how to avoid the penalty.

[DianeW777]

Definitely proceed with confidence but also with safety.  You can file the original return with one or both of these forms and include your comments about not receiving a K-3.  When and if a K-3 is received you can amend if necessary, if there are no changes to the return you can keep it with your file.  Only you know if there are international transactions and you should not take a chance on allowing a penalty.

• IRS Form 8275
• IRS Form 8082

@Dave Bar 

[Bertm]

I have same issue (different partnership) and same situation (this seemingly immaterial dollar amount is the last thing holding up a substantial refund. Searched the IRS website and it says to file Form 8082 "Notice of Inconsistent Treatment" in this situation (and I guess amend later) to avoid possible penalties. It says use this form

• If the pass-through entity did not provide you Schedule K-3, and it was required to do so according to the instructions for Schedule K-2, use Form 8082 to notify the IRS of this.

But this form is not in TurboTax that I can find

Sigh, I am thinking that I just pretend that I did not see the check in Box 16, file my taxes and then when I get the K3 then I amend 

Thoughts?

[PatriciaV]

Yes, you are correct. Form 8082 is not included in TurboTax for personal returns. Because the IRS requires this form to be attached to your return, you would need to print and mail rather than e-file your return.

Your best option may be to file before the deadline and amend later if/when you receive Schedule K-3.

@Bertm 

[jam20143]

@PatriciaV I'm in the same situation.  Can you clarify your response? Should we:

1. eFile the return via TurboTax (and not check box 16 that says we got a k-3).  And then later eFile an amendment when we do get the k-3.  OR:
2. Print out our tax return, attach form 8082 and mail the tax return to the IRS.  

Thanks.

[BrittanyS]

You can use either option.  Many choose to uncheck box 16 because they have not received a K-3 and do not know if one will be issued.  Or the K-3 has incorrectly reported US income instead of foreign income.  Instead of waiting to see if a K-3 is issued, you can uncheck the box and file the return.  If a K-3 is received at a later date, an amended return will have to be filed.  

If you have all your tax documents and the K-3 has been issued and is correctly reporting foreign income, you will need to file the return by mail with form 8082 attached.  

@jam20143 

[ANDY012408]

Hello:  My schedule k-1 says attached K-3 but not received and it is not available online any advice please?

i think the reason K -3 is not available is because i bought is in 2022.

as i checked online last time the company provided 2021 schedule. K-3 is in September 2022

so, if i bought those funds in 2022 then the K-3 for 2022 is not available until September 2023.

if that is the case, they should not check mark on my k-1. Any advice? 

[dave413]

Two of my Schedule K-1's says I will not get a K-3 until July Do have to wait until to file my tax return? I am unable to clear the error items on my return without the K-3 form.

[PatriciaV]

You have the option to 1) uncheck the box relating to Schedule K-3, e-file your return now, and amend later if necessary or 2) request an extension of time to file. Any taxes you owe must be paid by the filing deadline, however.

Schedule K-3 is a tracking tool for the IRS that reports foreign income, which is already included in other boxes on the K-1. The calculations on this form can result in deduction limitations. But unless this is a foreign investment with significant foreign activity, whatever information is missing by not having Schedule K-3 should not greatly influence the taxes due on your return.

@dave413 

[rmdrent]

For those of us with box 16 checked and no K-3, (may not even get one), how about just leaving it checked and putting zero's for all the K-3 boxes? That clears the errors, allows you to E-file and you have provided all the correct and accurate info to the IRS at time of filing. If you do receive a K-3 in June, you can just amend with the new numbers and done. 

[Dave Bar]

@Bertm:

"Sigh, I am thinking that I just pretend that I did not see the check in Box 16, file my taxes and then when I get the K3 then I amend 

Thoughts?"

I already forgot!

[Jolamiller]

I put $300 in a fund that apparently is a partnership. I lost $22, had $1 in portfolio deductions. Do I have to mess around with this for such small numbers? The K-3 won't come until June or July. I think I will uncheck the k-3 box and just file. Not worth doing an extension or amendment later, is it? 

[PattiF]

From Expert@DianeW777  When and if a K-3 is received, then you can amend if necessary. If there are no changes to the return you can keep it in your file. 

@Jolamiller 

[LinnyH]

I have a partnership K-3 with no information entered in Parts I, II, and III, but with info on Part IV, which is needed to determine deduction eligible income (DEI) and qualified business asset investment (QBAI) to populate Form 8893.  My past years' returns that I have prepared with TT have populated this Form 8893 based on information provided on past years' K-1s from the partnership.  My 2022 TT Premier download version only displays entry screens for the Schedule K-3 Parts I, II, and III, and then stops offering any further data entry - I never get a Part IV data entry screen.  When will Intuit be updating TT to support Schedule K-3 Part IV data entry?  In case it matters, Box 21 (foreign taxes paid or accrued) of my Schedule K-1 is blank, and I believe all of the partnership's activity is US-based only.  I have no idea what any of this stuff means and have no idea how to proceed, but as of now, TT Smart Check keeps throwing an error and won't let me finalize/file my return.  Help?!?