My accountants tell me that partnerships and S-Corp must issue a K3 if the partner is claiming a foreign tax credit on their personal tax return. This applies to the Partnership and the S-Corp even if that entity's income is totally US based. My accountants issued a K3 to everyone because they could not question every partner about their personal return and foreign tax credit. SO, you may get a K3 that you do not use. Just another 10 pages of tax reporting.
