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Level 1
posted Apr 8, 2023 2:42:20 PM

K3 for Individual Taxpayer

I own a rather small amount of stock in a limited partnership (ET - Energy Transfer, LP) through my regular brokerage account. ET, LP provided me a K-1 that shows a small loss of $253.00 for 2022. Also, the K-1 has box 16 checked which says schedule K-3 is attached. However, schedule K-3 is not attached, but rather, the form says that K-3 will be available for me to download from their website by June 30, 2023.  

Also, the form states that all of their (ET, LP) income is effectively connected with a United States trade or business. However, a limited number of unit holders (primarily foreign unit holders, unit holders computing, a foreign tax credit on their return and certain corporate and/or partnership unit holders) may need the detailed information disclosed on schedule K-3 for their specific reporting requirements.  

I am not a foreign unit holder and none of the other situation’s noted above apply to me.  

Realizing this, do I need to wait to file my 2022 individual tax return until I can obtain the actual K3 after June 30? Should I file an extension until I get the K3 form? The K-1 instructions seem to indicate that the K3 would not apply to my situation but I want to make sure. How do you recommend I proceed with my individual tax return filing, noting the absence of the K3?

0 2 424
2 Replies
Expert Alumni
Apr 8, 2023 5:28:16 PM

If you have no other foreign income or foreign tax credits to report on your return you do not have to include the K-3. Keep it with your tax records.

Level 15
Apr 8, 2023 6:00:51 PM

uncheck the k-16 box so you can efile.