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?

[DaveF1006]

To clarify, would you share with us what is in Part 4 and how it is listed?

@LinnyH 

[LinnyH]

@DaveF1006 

Per request above, my K-3 Part IV has dollar values entered in Section 1 lines 1, 2a, 2c, and 8. Section 2 no entries. Section 3 dollar values entered in column (a) DEI lines 14 A, B, C is blank, D, E, F AND in column (c) Total lines 14 A, B, C is blank, D, E, F.  The values in Section 3 line 14 columns (a) DEI and  (c) Total are the same for all entries.  Section 3 all lines under 13, 15, and 16 are blank.

And to be further helpful re this new K-3 form, the rest of my form has no entries for Part V, VI, VII, VIII

Part IX and Part X both have entries.  Too many to enumerate here.  If you want those, pls reply and I'll go to the trouble to provide when I can.

Parts XI, XII, and XIII are blank

[DaveF1006]

According to 1065 partner's instructions, Part1V is used to determine your deduction with respect to FDII. Partners will use the information to claim and figure a section 250 deduction with respect to FDII on Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI).

This is currently out of scope for Turbo Tax as we do not support Form 8993 or section 250 deductions. At this point, yoyu have two choices.

1.  You may consult with a CPA that may be of help to you for you to claim the deduction on a Form 8993.
2. If the amounts in part 1V are small, you might consider not reporting the k-3 and uncheck Box 16.

.

Part 1X is used to figure the BEAT. Corporate partners will use the information to complete Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts.

 

Part X.

Used to provide information to a foreign partner (or a pass-through entity partner with a foreign owner) to determine its tax liability or reporting requirements with respect to income effectively connected with a U.S. trade or business (ECI) or with respect to fixed, determinable, annual, or periodical (FDAP) income. Partners will use the information to figure and report any U.S. tax liability on Forms 1040-NR, U.S. Nonresident Alien Income Tax Return; Forms 1120-F, U.S. Income Tax Return of a Foreign Corporation; or other applicable forms.

This is also out of scope for Turbo Tax because Turbo Tax does not support form 8991 and Part X is for a foreign partner to report on his 1040 NR. 

@LinnyH 

[Bertm]

I have a headache

Unchecked the K3 box; bought audit protection, submitted the return,  took two aspirins washed down with a glass of wine, and started a movement to Defund the IRS

[Jason202104]

I ran into the same problem this year. Box 16 in my K-1 is checked, but there is no K-3 attached. I called the partnership and was told that K-3 is not available until June. Did research online but did not find any update on this issue. My question is whether the exception for 2021 still applicable for 2022 return?

[JulieS]

No, at this time there is no sign of the K-2, K-3 waiver being extended to this year. The IRS insists Form K-3 is required for nearly everyone.

Your best approach would be to complete your return based on the information that you have and then file for an extension. If you have a balance due, pay it with the extension. 

Click here for more about filing an extension in TurboTax. 

[topchop]

That answer if for last year, ie 2021 taxes filed in 2022.   How about now?  Same problem.  What direction can TT or anyone provide?  Thank you.

[DocNyr]

Ok... I am doing taxes and find that my K-1 for Plains All American Pipeline has the dreaded box 16 checked. 

From reading the posts here on this topic, I believe the advice is to:

(1) In turbotax, uncheck the box 16 is checked and print return to mail in. 

(2) Include form 8082 together with the return when one files. 

(3) Form 8082 has to be downloaded from IRS website.

My question is how do I fill in Form 8082???-

It is written in a language that is very hard to understand with lots of jargon/terminology that is very opaque. Can Turbotax experts chime in how to fill in the form to convey  the correct situation to the IRS that K-3 was not sent with K-1, and that we will amend the return when we get the damned K-3 form.

Thanks so much.

[johncsmithjd]

I saw that this was not being pushed by irs for 2022 filings, but what about 2023. Same problem, many form K-3's are delayed until July at earliest. Not commented on after 2022 filing season, nothing for 2023

[pgeorgan]

Hi,

The two forms you've listed seem to be for if you want to dispute a dollar amount of sorts. Would you just enter "$0" and then in the detailed explanation section discuss how a K-3 was never received? 

For my particular case, all of my K-1's have Box 21 empty. That is, they're not claiming that I paid/accrued any foreign taxes, therefore I don't see that my return would require "international tax law considerations".

I would prefer to just uncheck box 16 and e-file.

Please advise. 

Thanks. 

Edit: I should note that I've not sold any units yet, and so far all my K-1's are reporting losses. 

[DianeW777]

If you have no foreign activity in the partnership there is no need for a K-3 you can uncheck the box. Schedule K-3 reports items of international tax relevance from the operation of a partnership. Keep your documents together with your tax file to show a K-3 was not part of your package.  Also contact the company to make sure whether they plan to provide one to you at a future date.

 @pgeorgan 

[tarheel67]

I have the same question, but for this year's filing.  The K-1 Box 16 is checked saying Schedule K-3 is required and attached, but...no K-3.  Where do I obtain the K-3?....thanks.....Steve

[AliciaP1]

If the box was checked but you did not receive the K-3, you should have received some communication from the issuer about the form.  You need to contact the issuer if you did not receive anything else.

I do not advise you to file the return without the K-3 information unless you are certain it will be blank.  The Foreign Taxes paid or accrued box being empty does not guarantee the K-3 will be blank or determine you will not be receiving one.

If you have not filed the return and do not have key indicators to file your return without the K-3 I recommend filing for an extension and completing your return when you receive it.  If you have already filed, you should wait until you receive the K-3 and then amend your return. 

@tarheel67