K-2 and K-3 forms how is turbotax addressing this requirement

[pxmark]

Can you post the link to the 2 step process posted by DaveF100? I'll need to report the K-3 information to receive the foreign tax credit. Thank you.

[Anonymous]

I think it just refers to filing with it unchecked now and then filing an amended return later if needed.

[pxmark]

ok. thank you. 

[SSM]

If K-2 and K-3 forms are not needed to be filed, why is this not addressed by TurboTax in the program? If not required, the program should have the ability to take this into account and not generate an error. Will this be fixed?

[AliciaP1]

If you are required to file forms K-2 and/or K-3 they must still be filed, but cannot be e-filed at this time.

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

@SSM

[nrdlik99]

Alicia, what is a K-2 form for?  I am a member of a partnership and we are filing K-1 and K-3 forms along with our regular partnership tax forms.

nrdlik99

[AliciaP1]

Both K-2 and K-3 are new schedules for 2021.  The K-2 is an extension of the Schedule K of the business return and the K-3 is an extension of the K-1.  They both add the details for items of international tax relevance to the Schedules K & K-1.

The business return should include both if it needs to include international tax items and the partner or shareholder should receive the K-3 along with their K-1.

@nrdlik99

[Anonymous]

I filed with mine unchecked 7 days ago and just got my refund today. I guess I'll follow this and see if I need to amend later.

[GeoffS]

I believe it is a Turbo Tax issue caused by the late publication by the IRS of K2 and K3 instructions. At this moment Turbo Tax is incapable of handling the K3 information and simply says it will be available in a future issue.  If a filer has a 1065 with box 16 checked, as I do, Turbo Tax flags an error and prevents filing of both Federal and State Taxes.

[nitadunn]

Which TurboTax allows for the K-2 & K-3 forms to be entered? 

[GeoffS]

None that I know of. It simply flags an error and says it will be addressed in a future issue. If the temporary fix is to uncheck box 16 on the K1 and file an amendment later in the year, then you would think TurboTax would have the sense to state this when it flags the error.

[AliciaP1]

You can reference my post from March 8th in this thread to see the release date information directly from the IRS.

@nitadunn

@GeoffS

[GeoffS]

Well Alicia, that's all well and good. My question is - why does the TT software fail to explain what the immediate fix is when it flags the error and prevents filing the federal and state returns. You seem to be suggesting that all TT customers should acquaint themselves with your posts.

[Anonymous]

@GeoffS I don't think this is an IRS approved fix so Turbotax can't program it to tell you to uncheck the box. It's more of an "employee tax expert" fix which I sometimes wonder has any validity.

[MW66071]

These forms are on the IRS web site.  TurboTax should update the program.