Schedule K-3 release in August

[PAGB]

Just received K-1 today and box 16 is checked.

But the partenership says it won't give the K-3 until end of August so does that means I won't even be able to

print and send by even if I wanted to, correct?

Second question:

On the K-1 there is only loss (no gain), would that mean that I am safe in terms of not owning money to the IRS?

What I mean is that if I file just the K-1 even if a K-3 comes later, it won't effect the taxes I owe the IRS will it?

[Cynthiad66]

Since IRS is not requiring the form for 2021, we suggest that you uncheck the box 16 and file your return. One question, is there anything recorded on the K3 such as a foreign tax credit? If so, you may wish to amend your return once the K3 is available in Turbo Tax to claim the credit.

Most forms K-2 and K-3 forms do not need to be filed this year. The IRS announced on Tuesday February 15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return filing.

This is an extract of the IRS announcement:

@PAGB

[PAGB]

Thank you for answering

I think you are referring to below?

I'm a little confused  what this means though. We have a K-1 that was given to us by Proshares because we invested in ETF's through them. Does this mean since Proshares is not a foreign entity this exemption applies to us?

The IRS is providing an additional exception for tax year 2021 to filing the Schedules K-2 and K-3 for certain domestic partnerships and S corporations. To qualify for this exception, the following must be met:

• • In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates or foreign trusts. 
  • In tax year 2021, the domestic partnership or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated or may reasonably expected to generate foreign source income (see section 1.861-9(g)(3)).
  • In tax year 2020, the domestic partnership or S corporation did not provide to its partners or shareholders nor did the partners or shareholders request the information regarding (on the form or attachments thereto):
    • Line 16, Form 1065, Schedules K and K-1 (line 14 for Form 1120-S), and
    • Line 20c, Form 1065, Schedules K and K-1 (Controlled Foreign Corporations, Passive Foreign Investment Companies, 1120-F, section 250, section 864(c)(8), section 721(c) partnerships, and section 7874) (line 17d for Form 1120-S).
  • The domestic partnership or S corporation has no knowledge that the partners or shareholders are requesting such information for tax year 2021.

If a partnership or S corporation qualifies for this exception, the domestic partnership or S corporation does not need to file Schedules K-2 and K-3 with the IRS or with its partners or shareholders. However, if the partnership or S corporation is subsequently notified by a partner or shareholder that all or part of the information contained on Schedule K-3 is needed to complete their tax return, then the partnership or S corporation must provide the information to the partner or shareholder. If a partner or shareholder notifies the partnership or S corporation before the partnership or S corporation files its return, the conditions for the exception are not met and the partnership or S corporation must provide the Schedule K-3 to the partner or shareholder and file the Schedules K-2 and K-3 with the IRS.

[PAGB]

@Cynthiad66 

I don't have a K-3 and won't receive one until the end of August. Basically even a tax expert could not help me with no K-3 available,

As for the exception, I've seen that (I've pasted it in my other comment) but when I called the entity even they couldn't tell me if the exception would apply to me or not, or even if it applies to the company or not.

My guess is that this is still so new for them they don't even have the answers and need till August to sort it out.

[barry13]

This is yet another reason why I am exiting all my Proshares ETF investments -- not worth the K1, K3 hassle during tax season.  Proshares is the absolute worst ETF.  Thought this would be the last year of this nonsense, but now I need to deal with their K3s next year!!!  ARGGGGG!!! Avoid at all costs!!! 

[ronen48]

@PAGB What did you end up doing on your return? I am also missing the K-3 form from ProShares like you.

[AliciaP1]

If you did not receive the K-3 with your K-1, you can uncheck Box  16 and e-file although you may have to file an amendment when you do receive your K-3.  If you do not wish to file an amendment, you will need to file an extension and then file your return when you receive your K-3.

If you received your K-3 and have entered the information, you will need to print and mail your full return in.  When you have completed your return, TurboTax will prompt you to print your return after you have paid your fees.

K-3 information is not available for e-file yet 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

@ronen48

[PAGB]

@ronen48 

Unfortunately I don’t exactly remember the particulars but as far as I can recall I called proshares and they mentioned that the majority of people won’t be affected by this. 

I got the feeling that they just checked this box to cover there own backs and the sort it out for each customer later even though it doesn’t make sense to say refer to an attachment when there is none. To be fair the IRS sprung this one them pretty late like in February I think.

But the guy at proshares kept saying that most of their customers won’t be affected by this , lets hope it’s true

[sd1sd]

I agree and would do the same. Just not worth the time.