I have a K-1 Filing but I can't because TT says the K-3 attachment is not ready yet. When can I expect it to be avaiable?

[TonyM3138]

Absolutely !  IRS came out with the K3 treatment, penalty protection, etc. in Feb and March, so TT owes us a way to enter this K3 data NOW - or lose this customer.....

[nblizard]

This is my plan.  I am waiting a week (until 3/27) and if no change in TT software or IRS policy then I plan to:

a) uncheck the K3 box (K1 form box 16) to clear the warning in TT

b) EFILE fed and state

c) see if IRS and state (IN) accept the efiled returns (should be within 1-2 days)

d) wait until I get a response from Intuit/TT or IRS (refund) (2-3 weeks)

e) go back into TT, amend the fed return to check the K3 boxes (I have 2 K1s)

f) file PAPER amended fed return by April 18 certified USPS with a cover letter to IRS saying K1-K3 exemptions are unclear whether applicable to me so this was the process I took.

I  do know that various investment clubs struggled with the 1065 filing this year, as did the software accounting firm BIVIO, so a lot of paper is being sent to the IRS by investment clubs.

These steps seem like the legal and prudent steps to take.

Knowing that IRS has major backlog in processing paper returns, I do not want to wait months for responses, or refunds delayed or subsequent penalty notices for nonfiling (failure to check K3 boxes).

Anyone who cares to comment, please do so (by 3/26).  CPA or TT feedback is appreciated.

[raybeyond]

I don’t think you need to file K3 for year 2021 if you don’t pay “foreign taxes paid or accrued” on K1 box 21.

[nblizard]

TT will permit me to file even with the 2 errors (K1 box 16) checked but K3 not supported by TT, so I guess it is a matter of faith or chance that IRS will let this pass.  I did put in a 0 in box 21 for no foreign tax paid or accrued, which is correct.  Didnt matter, I still got the error messages.   So I will stick with the plan, uncheck K1 box 16, efile, then wait, then check box 16 and file amended return with cover letter.  IRS owns the paperwork problem.

[MissJack]

Just spoke to Turbo Tax customer service today Tues 3/22 a.m. They do not have a specific date for TT update however said they do it as fast as humanly possible once IRS releases update. 3/20 (IRS date) was Sunday. I plan to give TT a couple more days. If no update, will call customer service back and speak to a manager/supervisor. I suggest folks call TT customer service [phone number removed] - the more calls they get, the better. The agent I spoke with said there are also a couple other updates that customers are waiting for. 

[raybeyond]

The problem is my K3 will be available around 8/31/22.  

[Nursmike]

My K1 said I am a domestic partner and not a foreign partner. my limited partnership  said the K 3 would be ready in the summer. my question is can I submit my taxes now and amend the k3  later this year. 

[nblizard]

Hello. I have been notified that the K3 box can now be checked.  Per Bivio.com, our investment club accounting software provider, it is now working in TT.

Laurie Frederiksen on

03/24/2022

Hi All, We are not Turbo Tax experts, but we have been getting a lot of questions on how to enter the K-3 information into Turbo Tax. Up until yesterday, they did not have that functionality working. Happy to report that it is working now so, if you use Turbo Tax to prepare your personal tax returns, you will be able to address any K-3 information you had reported on your club tax forms.

Laurie Frederiksen Invest with your friends! www.bivio.com

[collic]

Yes I confirm that TT has now updated it's software to enable K3 data entry!  What a relief.  I didn't want to have to mail a paper return given the disarray the Post Office is in now.

[raybeyond]

Can you confirm that you can e-file K3 form with TurboTax?  Thanks.

[collic]

It worked for me this morning (entering K3 data in TT).  As far as I understand it, if you are not filing tax form 1116 (foreign tax credit) TT may not prompt you for the K3 info.  For each K1 entry requiring K3 entry, I had to go back through each one and reconfirm all my previous inputs before TT prompted me to enter K3 data.  

The Feds "accepted" my e-filed return so I guess whatever I entered for K3 data was sufficient.

[birdietax]

Hi - I also need to enter a few K-1 forms with K-3 and have an amount in box 21 so they are required. Is this possible in TT Deluxe desktop download for Mac? Thank you

[CarissaM]

Yes you should be able to file with that version. 

You can compare the different software here. 

Please let us know if you need further assistance. @birdietax

[ytfgdrm]

how do i enter 2021 K-3 info into turbotax

[JamesG1]

You will be asked to select Schedule K-3 is attached if checked in:

• box 16 of IRS Schedule K-1 (1065) or 
• box 14 of IRS Schedule K-1 (1120-S).

TurboTax will then prompt you for entry from the Schedule K-3.

@ytfgdrm