For 2022 filing, my K-1 has form K3 checked but specifies that the K3 will not be available until late this year. How to handle this and still file by April ?

[lm119251]

I've seen previous postings on this topic but they seem to point to 2021 filing.  I'm looking for 2022 filing specific help as it relates to a late K3 arrival.  Thank you.

[AliciaP1]

You cannot file without the K-3 information and the company issuing your K-1 should not have either.  There is an exception, but it does apply to delaying the information, it applies to not being required to report (on the business side) so you would have received a message saying it was not required rather than delayed. 

See "Domestic Filing Exception" link under What's New section for Partnership K-1 or S-Corp K-1 depending on the type of K-1 you received.

[lm119251]

Thank you, makes sense, I’m thinking of going with the exemption and completing the filing when the k3 comes in.  

[NFP]

So, if I understand correctly, the best way to handle the K3 saga is to file for an extension in April and wait to receive K3 in June to file my tax return. Please correct me if I am wrong.

[Cynthiad66]

Yes, file an extension.  IRS extensions for tax year 2022 must be filed on or before April 18, 2023 for domestic taxpayers.  It isn't possible to file a post-deadline extension.

Keep in mind: An extension doesn't give you extra time to pay your taxes, but it'll keep you from getting a late filing penalty. (You'll still owe interest if you pay after the deadline).

1. Open your return in TurboTax Online
   • To do this, sign in to TurboTax and select Pick up where you left off
2. Select File an extension from the menu
   • If you don't see File an extension, search for extend using the search function and select Jump to in the search results
3. Follow the on-screen instructions to e-file your extension

The following link provides a video and additional information:  How to File an IRS Extension

@NFP

[Boyan]

Ok so to clarify - there's no way out of this other than file for extension and then, once K3 comes - complete the return? Totally understandable that tax owed must be paid before the April deadline? I'm in the same boat -box 16 checked but no K3 until June 2023

[HopeS]

Yes, an extension should be filed and any projected tax liability should be paid by April 17th.  You can pay online at IRS.Gov or mail the payment directly to the IRS Center.

If mailing, please use a certified mail receipt for tracking purposes as well as to provide proof of payment before the April 17th deadline.

See the IRS link below for information on where to mail.

Where to file 

@Boyan 

[Boyan]

@HopeS Thank you for the clarification. Now that we know what to do, even though it isn't want I wanted to do which is to get this done and never come back to it, but oh well - life, may I ask a question of your statue since you appear to be in the expert level of this game - why, oh why is 2022 the first time we see K-3s with so many K1s - I am seeing box 16 checked on most of my K-1s this year and I've never seen this before and I've been in the MLP game for over a decade. What, in your opinion may be the cause of this sudden love for K-3 and why 2022? The K3 fairy just descended upon earth now? 

Thanks

Boyan

[LindaS5247]

It is a new requirement. The Legislation was enacted by the IRS in 2021, but not enforced.  In 2021 they did not require the K-3's to be filed.

The new schedules K-2 and K-3 were created to provide consistency in the reporting to partners and shareholders.

According to the IRS's FAQ on the subject (See below):  Prior versions of schedules K and K-1 did not require any specific format to provide international information, resulting in what could be a confusing array of statements attached to the schedules K and K-1.  The new schedules K-2 and K-3 provide greater certainty and consistency, helping partners and shareholders to voluntarily comply with their filing and reporting obligations.  The greater certainty also enables the IRS to verify that partnership and S corporation items are properly reported on partners’ and shareholders’ returns.  This should reduce the burden on both taxpayers and the IRS by reducing unnecessary inquiries and examinations that may arise due to inconsistent reporting of partnership and S corporation items.

Click here for FAQ Schedules K-2 and K-3.

Beginning with tax year 2021, partnerships, S corporations, and filers of Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships (for U.S. persons who are partners in foreign partnerships, or entities electing to be taxed as partnerships), will be required to include the new Schedules K-2, Partners' Distributive Share Items — International, and K-3, Partner's Share of Income, Deductions, Credits, with their returns if they have items of "international tax relevance."   

[marshg246]

I filed the extension and paid my taxes.  With my K1 there was an explanation that the K3 would be available for download by July 31, 2023.  It is still not available today (Aug 5, 2023).  My extension runs out soon.  Has anything changed on the requirement to be provided a K3 or the need to file one?

[VolvoGirl]

Yes the Forms Availability list says the K-3 is ready to print and efile.  If you are using the Desktop program you might need to update the program.  Go up to menu Online-Check for Updates.

https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product... 

[taxlady28]

If you mean that you do not have the K-3 yet, what other people did was file their taxes without the K-3 and then they will file an amendment when they have the K-3.

[Mike9241]

 normally form 4868 is good for 6 months that means your return isn't due until 10/15/2023. however, if you were out of the country, different rules apply an automatic 2 month extension. If you cannot file your return within the automatic 2-month extension, you can generally get an additional 4 months to file your return, for a total of 6 months. The 2-month period and the 6-month
period start at the same time. You have to request the additional 4 months by the new due date allowed by the 2-month extension.
The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. You must make an accurate estimate of your tax based on the
information available to you. If you find you cannot pay the full amount due with Form 4868,
you can still get the extension. You will owe interest on the unpaid a on the unpaid amount from the original
due date of the return.

[marshg246]

I have no clue what you're talking about!  You don't know what company I need a K3 from so how can you say it's ready to download and print?

[marshg246]

Like I said, I filed an extension.  My question was has some requirement changed as the company said the K3 would be available by July 31, 2023 and it is still not available.