Received a k3 - do I need to amend?

[Marria93]

Hello,

I recently received an updated k1 form with an included k3. I'm unsure what to do with this new form. The numbers seem the same as from the original k1, just a longer k3 also attached now. Do I need to file an amended return to submit information from the k3? Does it depend on which portions of the k3 are filled out?

Thanks for the help!

[Anonymous_]

Probably not. I will page @Mike9241 for this.

[Mike9241]

i don't know what type of partnership you have or your ownership %.  Generally, most of the k-3 info is for a US individual to complete a foreign partnership return form 8865.  Generally, these are taxpayers that have 10% or more interest in a foreign partnership. my guess is that it's unlikely that a Turbotax user would be subject to such a filing. they would be using a professional firm because in such cases there may be additional forms that have to be filed that Turbotax does not handle.  

you'll notice that while the k-3 is about 20 pages most of it is for the 8865. Turbotax can handle only some of the items A through R and many don't flow to any other form or schedule 

i can't see what's on your K-3 but if it's reporting only US source income, then  after you enter what you can you will find nothing additional in your return

from my perspective, you should amend if you got any foreign tax credit (that would have shown on line 21 of the k-1). this is just playing it safe. For me, if nothing changes on the amended return which in many cases will be exactly what happens, I'm not filing it. 

then you would need to complete the k-3  lines A, C, I, J, and P or Q. you would also have to complete the additional foreign tax info section so form 1116 can be completed if you are taking the Foreign Tax Credit.

Amounts on other lines A to R go nowhere, 

[marria]

Thank you for the information. I only have a small percentage of the partnership, definitely not over 10%. The income is all US source income and line 21 on my k-1 is blank.

I tried to go amend the return to see if anything changes but I don't even see a place to enter the k3. But it sounds like you are saying unless there is foreign income nothing will change anyway. Is that right?

Thanks for the help,

Marria

[Mike9241]

if its all US source income the k-3 should be ignored because as you guessed nothing changes.  

[helen222]

Hi @Mike9241 

I have a similar issue. I found out recently that there was a K-3 attached to my tax package from the partner which was issued after I filed my tax return. There were indeed foreign activities and foreign income. But after I went into my turbotax 2023 and entered those numbers, the amount does not change. It still shows refund 0. Do I need to amend it? Line 21 (foreign tax) of k-1 is 0. The foreign source interest and divideds is about 800 dollars. Also, thebox 16 from this year's K-1 is also checked and I was told the K-3 won't be available until June, do I need to file extension to wait for the K-3? I figure the result might be very similar with even less distribution (around $250)

Not sure if this matters, but this is an investment in a HSA account.

Thanks a lot

[DaveF1006]

Yes, if you do have foreign activity to report on a K-3 you need to amend your return just so you remain compliant with IRS regulations. ‌This K-3  ensures that the partnership is completely compliant in reporting items of international tax relevance from the operation of a partnership and distributing this information to each of its partners.

@helen222