Here's what I've done:
(1) I received $12 of income from this PTP that came from the foreign source. I only received $9 of it in a distribution this year, but IRS instructions say to report the full $12 as income, not just the $9 I received. I reported this as other income on line 7a of the 1040SR and also on line 8 of Schedule 1. That amount makes no difference in the tax I owe.
(2) This amount is totally "immaterial" to my return and the taxes I owe, so getting Form 8621 filled out "perfect" is immaterial.
(3) So, I've filled out Form 8621 as best I know how and am mailing in the whole (entire) return via USPS mail with 8621attached, also.
(4) This completes my obligation to the IRS this year, all taxes are paid in full and I've saved myself $375 or more by not taking it to a CPA for a superfluous item.
(5) I'm a retired non-certified accountant with 2 years experience working for Jackson Hewitt, the last year as a manager, and 10 years doing accounting for 2 publicly traded companies and several private ones. I feel confident in the decisions I've made for this year's return.
(6) I sold my shares in this company in early 2020 so next year's return is the last year I have to concern myself with this. No more K-1s for me after this. I'll look for other investments.
Thanks all for your input on this. It is appreciated. However, depending on how you choose to report a PTP with foreign earned income, Form 8621 is not always just an informational form. In my case I had to report foreign earned income on it and the 1040 and be subject to income tax on it. So be careful.
