Partnership 1065 K2 and K3

Forum|Forum|4 years ago
February 10, 2022
9 replies
148 views

I am preparing a Partnership 1065 return. Forms K2 and K3 indicate "DO NOT FILE". When will these forms be ready so I can complete and file this return.

Anonymous_

Level 15

The forms availability table can be viewed at the link below.

https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotaxbusiness_fed_windows_partnership.html

Steve-NJ

Level 3

When I go through TurboTax for NJ state taxes it says "Schedule K-3 will be available in a future release", yet the link above says it is available now in print but unsupported for e-file. Is it coming soon for e-file 2021 taxes or is the future release next year? If it will not be available this year, do I have to paper file?

gsw66

Level 2

The Country Codes do not have 'RIC' as an option. The Partnership holds a mutual fund (it is a Registered Investment Company (RIC)) that has received a 1099 with foreign tax withheld for dividends. In order to pass it through, it needs to specify RIC in the country fields of the K2's and K3's. This is not one of the options in the drop-down list. In the IRS publication instructions for the K2/K3 (page 😎 it states that a registered investment company is an exception that can be used instead of the 2 letter country codes. Note that 1116's allows 'RIC' to be used in their Country Fields. If the country field is not populated on the K2, TurboTax does not compute the forms. (Section II and Section III). When will this be corrected, or what is a work-around? Note that the override does not work for this field.

RobertB4444

Level 15

You can enter 'Unknown Country' or 'Various Countries' to bypass this entry.

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gsw66

Level 2

You can't enter anything other than what the K2 form offers in its drop-down list. 'RIC' isn't available. Also anything others such as 'other' or 'various' are not available. Only the list of the 2 letter country codes. So, No, it didn't solve the problem.

(I guess you could print out a blank K2 form, and just write whatever you want, but that inhibits any efile submission obviously)

alexanr1

Level 2

It is almost the middle of March and this new K-3 form is still not available. TurboTax, what is going on?

AliciaP1

Level 13

Per the IRS:

Schedules K-2 and K-3 will be available for MeF/XML filing in the following time frames. If you electronically file your return before the time frames, submit the schedules as separate PDF files attached to the return. Taxpayers will also be able to file their Schedules K-2 and K-3 via PDF attachments for the entire 2022 filing season.

Form 1065, Schedules K-2 and K-3 March 20, 2022

Form 1120-S, Schedules K-2 and K-3 Mid-June 2022

Form 8865, Schedules K-2 and K-3 January 2023

@alexanr1

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dougf

Level 2

There are 2 major bugs in Turbotax Business regarding this. 1. Not accepting RIC in the drop-down. 2. Not allowing more than 6 countries in the foreign tax credit section (may be more of an IRS issue than Turbotax's fault). I reported these issues to Turbotax support several weeks, ago, but it is still a problem. Since the efile stuff won't be ready by the March 15th filing deadline anyway, my work-around is to: 1. Put RIC into an arbitrary country (Germany). 2. Lump all 17 of my other countries into a single country (France). I'll print the return and cross them out on the K-2's and K-3's and change them to "RIC" and "Various", file the printed return, and let my partners know what I am doing. Form 1116 on the individual tax returns still accepts "RIC" and "Various" just fine. Hopefully the IRS and Turbotax will get their acts together for 2022.