Are Schedule K-3 forms really not available until late in the year? (Tax Year 2021)

[tenlbham]

I received a Schedule K-1 (Form 1065) which has a check box stating "Schedule K-3 is attached" but it's not attached.  The K-1 instructions say the K-3 will be available by August 31, 2022.  And when I enter the K-1 info into TurboTax, it says the IRS is still working on finishing up the Schedule K-3.  Will I really need to wait 6 months to be able to complete my tax return?

[PatriciaV · Accepted solution]

Most forms K-2 and K-3 forms do not need to be filed for the 2021 tax year. For that reason, you can uncheck Box 14 when entering your Schedule K-1. This should allow you to file your return on time. If you receive Schedule K-3 later this year, you always have the option of filing an amended return.

The IRS announced on Tuesday February 15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return filing.

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.

[damTax]

Did you mean to leave "Box 16" unchecked?  Box 14 is "Self employment earnings" on my K1.

[AliciaP1]

Yes, there's a difference between the K-1s for different types of businesses.  Our excellent Expert @PatriciaV just made a mistake in identifying the form in your original post.  Her post is correct, but in your case, applies to Box 16.

@damTax

[andyvu2002]

Hello, most schedule k-3 is not available till summer 2024.

should i uncheck schedule k-3 on box 16

please advice 

by the time i receive schedule k-3 summer 2024 what do i need to do to

thanks

[PatriciaV]

It depends. If you believe Schedule K-3 will report foreign income that will affect your taxable income for the year, you may choose to request an extension of time to file. But if you believe the information from Schedule 3 won't apply to you or won't significantly change your taxable income, you may choose to file your return now and amend your return if necessary when the forms arrive.

In most cases, the foreign income reported on Schedule K-3 is either already reported on Schedule K-1 or only applies to partners with other foreign income and/or assets.

If you chose to file now, uncheck Box 14/16 from Schedule K-1 to clear any federal review issues in TurboTax.

@andyvu2002