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New Member
posted Apr 16, 2022 11:31:20 AM

Why does K3 reporting only deal with foreign income?

Schedule K-3 only allows foreign income. Any ideas on how to do US partnership income on a K-3?

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2 Replies
Expert Alumni
Apr 16, 2022 11:48:52 AM

The sole purpose of Schedule K-3 is to report foreign income in great detail.

 

Many of US partnerships and S-Corporations are required to file this form, but without any foreign partners or transactions, the form is almost completely blank for them. 

 

The IRS says you must complete Part II and III even if you have no foreign income or transactions.

Level 1
Aug 27, 2022 8:14:24 AM

On the K-1, Box 16 is checked.  Do I uncheck it because there is no foreign data reported on the K-3.

 

Thanks,

John K.