K-1 question

amy100564 · ‎April 6, 2022

Box 16 is checked on one of our K-1's, indicating an attached K-3. Unfortunately, there is no K-3 with it, and further reading shows that the LP will not have the K-3 available until late summer of this year. Do I just change my answer to Box 16 not being checked, since I cannot provide any information for the K-3?

JamesG1 · ‎April 6, 2022

If you "uncheck" the box indicating that a K-3 is attached, once you receive the K-3 or information you may need to amend your return.

The IRS announced on February 16, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return filing, but they have not indicated how individual taxpayers should proceed.

This is an extract of the IRS announcement:

"The IRS intends to provide certain additional transition relief for this year from the Schedule K-2 and K-3 reporting for certain domestic partnerships and S corporations with no foreign activities, foreign partners or shareholders, and without knowledge of partner or shareholder need for information on items of international relevance. For 2021, these qualifying domestic partnerships and S corporations will not have to file the new schedules. We are taking this step in response to feedback we received from the tax community and our stakeholders. The IRS will provide full details of this relief soon."

See also this IRS FAQ.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

JamesG1 · ‎April 6, 2022

If you "uncheck" the box indicating that a K-3 is attached, once you receive the K-3 or information you may need to amend your return.

The IRS announced on February 16, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return filing, but they have not indicated how individual taxpayers should proceed.

This is an extract of the IRS announcement:

"The IRS intends to provide certain additional transition relief for this year from the Schedule K-2 and K-3 reporting for certain domestic partnerships and S corporations with no foreign activities, foreign partners or shareholders, and without knowledge of partner or shareholder need for information on items of international relevance. For 2021, these qualifying domestic partnerships and S corporations will not have to file the new schedules. We are taking this step in response to feedback we received from the tax community and our stakeholders. The IRS will provide full details of this relief soon."