I am in a similar situation as this post. I have received a schedule K-1 for a futures commodities ETF (SOYB and TAGS) that I hold. Box 16 (Schedule K-3 is attached if checked) is checked but won't get the K-3 till June or later. I see that IRS had certain exceptions in 2021. Is there any update for how to navigate through this in 2022? I see here that there is an exemption recommendation saying
New exception to completing Schedule K-3.
Under a new exception, in certain cases, partnerships with no or limited foreign activity are not required to furnish Schedule K-3 to you for tax years beginning in 2022.
How do I find out if I am eligible for this exception? Schedule K-1 -> Part III -> Line 21 for "Foreign Taxes paid or accrued" is empty. Is that sufficient info for assuming exemption?
You are not eligible for that exception - the issuer of your Schedule K-1 may be, but if they were you would have received a notice that they were filing for the exception not that your K-3 would be delayed.
I do not advise you to file the return without the K-3 information unless you are certain it will be blank. The Foreign Taxes paid or accrued box being empty does not guarantee the K-3 will be blank.
If you have not filed the return and do not have key indicators to file your return without the K-3 I recommend filing for an extension and completing your return when you receive it. If you have already filed, you should wait until you receive the K-3 and then amend your return.
Sounds good. Filing for an extension still requires upfront payment of the expected tax due. I can calculate that using TurboTax with or without the available K-1 information? I am inclined towards the former (after unchecking box 16 and proceeding) as it will help in minimizing any future penalties, if any. Thoughts?
Entering all of the information that you have currently should give you a pretty good approximation of the tax due. That seems like a good way to go.