A couple of comments:
- One of the issues with the K-3 is that if a partner requests that a K-3 be issued, the partnership no longer meets the requirement that a K-3 does not need to be filed.
- The filing exception has very specific guidelines. One of those is if a partner requests a K-3, then the partnership will issue one to all partners. This can be the case even if the partnership does not have foreign activity.
- Even though my K-1 checked the K-3 box, the cover letter specifically indicated that all income is effectively connected with a United States trade or business; and no foreign income reported.
- I chose to check the box "no" and will fight any battle that may come down the road. Additionally, I most likely will exit this investment just because of this nonsense.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
