K1 box16

[Jim C Wu]

I got K1 form 1065 and they mark "X" on box 16 of part II but without K-3. how can I keep work on turbotax

[HelenC12]

It depends. For some taxpayers, the IRS has announced that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return. If your K-1 does not report foreign activities for Schedule K-3, you can uncheck the box.

However, if your K-1 does report foreign activities, you are required to include Schedule K-3. You have the option to uncheck the box, e-file now, and amend your return later. Or you can file an extension and check back later in the year to see if Schedule K-3 is available. 

Please note that the issuance of a K2/K3 is not a Turbo Tax issue, it is a IRS issue. According to the IRS, these are the release dates for these forms, based on type of Business Entity. Even after the IRS form is released, it must be integrated into the software, which can take a few days. 

Form 1065            March 20, 2022
Form 1120-S         Mid-June 2022
Form 8865             January 2023 For more info, see this IRS link.

Source: PatriciaV

[mjkdad23]

I have a K-3 but there is no foreign income on it.  After completing the data entry, I am getting an error in 'federal review' because there is no foreign income included.  I have tried unchecking Box 16, but it will not let me do that.  Please help me get this resolved.

[mjkdad23]

I went back in today and walked through the K-1 form, confirmed that Box 16 was NOT checked, and made sure there were no boxes of any kind in Box 16 that were checked, or had amounts, including -0- in them.  That seemed to take care of it for me because the Fed Review came back clean this time.  Ironically, the only box that was checked before I went in was claiming any foreign tax paid as a credit on the return.  I didn't need that, so I unchecked it and I am good to go.

Certainly a lot of work to get around this, but at least I can file now.