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Level 2

Question

When will Schedule K-3 be Released

Forum|Forum|4 years ago
February 17, 2022
13 replies
0 views

Good afternoon to whom this may concern,

I have a Form 1065 that I filled with my K-1 and box 16 is checked that shows I had a K-3. When will TurboTax Premier Online support filing the K-3 portion online?

TurboTax Premier Online

Anonymous_

Level 15

That is a form related to a Form 1065.

See https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotaxbusiness_fed_windows_partnership.html

MZhunAuthor

Level 2

Thank you for the reply,

So based on what I've read, it should be available on or after March 20, 2022 for TurboTax?

Anonymous_

Level 15

Where did you read that? I am not finding a date.

David723

Level 4

I do see the IRS K-3 1065 availability date, but can you be specific on an availability date for the TurboTax desktop version update which has the 1065 K-3 form?

PatriciaV

Level 15

Unfortunately, we are unable to provide a specific date for the TurboTax release of Form 1065 Schedule K-3. As you can see from @AliciaP1's post, this form will not be available to our programmers until March 22, 2022, at the earliest. But there is no guarantee the IRS will meet that deadline. We suggest you periodically update your TurboTax installation after that date, and check to see if Schedule K-3 has been added.

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Mike9241

Level 15

I see the K-3 worksheet is now incorporated into the TT desktop windows version. Can any tell where the following 4 items should be entered on the K-3 worksheet? (ECI is Effectively Connected Income)

Net Income (Loss) - ECI US Sourced

Net Income (Loss) - ECI Foreign Sourced

Net Income (Loss) - non-ECI US Sourced

Net Income (Loss) - non-ECI Foreign Sourced

For now, I've enter them on the K-3 Line S. Any ideas if they belong somewhere else?

are you a non-resident alien? if not you've wasted your time this info only gets entered on form 1040-NR

7336

Level 2

When will form K-3 be released. Simple straight answer please

Xorth

Level 2

I contacted my partnership's tax dept. They said that their K-3s will not go out until August. Really.

manbeing

Level 6

One stock I traded in 2021 mailed me the 1065 form, and schedule-K3 box was checked.

Since Schedule K-3 is new this year and not available right now, IRS says as long as the partnership has no foreign income tax paid / foreign income, it is okay to file tax return without Schedule-K this year.

My question is the foreign income tax/income defined here is related to the partnership of the stock I traded , right?

I will file joint returning with my wife. She had some foreign tax paid from her 1099-DIV (on her name) which was nothing related to the stock/partnership I was involved in.

I quoted IRS rules here:

The IRS is providing an additional exception for tax year 2021 to filing the Schedules K-2 and K-3 for certain domestic partnerships and S corporations. To qualify for this exception, the following must be met:

- In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates or foreign trusts.
- In tax year 2021, the domestic partnership or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated or may reasonably expected to generate foreign source income (see section 1.861-9(g)(3)).

L_E_L

Level 2

When doing the review of my return, it says Schedule K-3 for Partnership returns isn't available yet and will be available in a future release. It was released late by the IRS but it has, indeed, been available for a while now. Why hasn't TurboTax updated its program to handle K-3 entries? I can't finish my return until they fix this!

TimHedrick

Level 2

Following this issue. Regardless of the IRS' waiver to business entities to generate a schedule K-3 in TY 2021, some entities have chosen to issue them despite the waiver (like the partnership from which I have received one). The IRS additionally has indicated if a taxpayer has received K-3 information more than 30 days prior to their required filing date, they must include the information as part of their tax return.

Consequently, many of us have K-3 information (received >30 days prior to filing due date) that we are required to input into Turbotax prior to April 18th in order to complete our returns. Turbotax needs an update to either allow us to enter this information, or an update to instruct us to deselect box 16 so that we can move forward with finalizing our returns prior to that date. The current response within the program that the IRS is still finalizing the form (which is already available) is both inaccurate and largely unhelpful to users of the software.

magallagher

Level 2

Does TurboTax have the capability to include a PDF attachment of Form 1065 K-3 when filing electronically to the IRS?

https://www.irs.gov/pub/irs-pdf/f1065sk3.pdf

Without a firm date for TurboTax Premier being updated to support a K-3, filing now electronically without the K-3 form data and then filing an amendment in August/September seems the least painful option.

manbeing

Level 6

Could tax expert or turbotax employee in this thread confirm that if the partnership is not involved in the foreign income or foreign income tax paid, we are not required to file K-3 schedule along with 1065 for 2021?

Source:

IRS webpage: https://www.irs.gov/newsroom/irs-provides-further-details-on-additional-relief-for-certain-partnerships-preparing-schedules-k-2-and-k-3-for-2021

Notice 2021-39: https://www.irs.gov/pub/irs-drop/n-21-39.pdf

Xorth

Level 2

Problem is that every K-1 that has Box 16 checked has foreign income and or tax. We just have no idea what those numbers are until they send us the K3 (in August according to my partnership entity's tax dept.). So what do we do to get the tax return filed?

xuanhungly1

Level 2

I have a Form 1065 that I filled with my K-1 and box 16 is checked that shows I had a K-3. When will TurboTax Premier Online support filing the K-3 portion online?

Xorth

Level 2

Our problem is that the partnerships need to fill out the k-3 and send it to us so that we can finish our tax returns. They won't be coming until August. What a mess!

rick34

Level 2

my k1 has box 16 checked and keeps me from being able to complete

my taxes why?

can i just uncheck box 16 so i can get taxes done?

Cynthiad66

Level 14

Since IRS is not requiring the form for 2021, we suggest that you uncheck the box and file your return. One question, is there anything recorded on the K3 such as a foreign tax credit? If so, you may wish to amend your return once the K3 is available in Turbo Tax to claim the credit.

Most forms K-2 and K-3 forms do not need to be filed this year. 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:

@rick34

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David723

Level 4

Unless I’m reading and interpreting incorrectly, only partnerships without foreign activity and without foreign income don’t have to file the K-3 this year. For those of us that do have foreign income and taxes, we are required to file this year. There is no way to attach a pdf or write special notes with your online TT filing, so the guidance from TT is incomplete. If the IRS provides the electronic xml version to TT as scheduled around March 20, we should be able to file on time by April 18. Otherwise, we should request an IRS extension via TT and wait for the TT update. Many us of also are discovering that the partnerships we own won’t provide their K-3 information until August or September. I’m not blaming TT, but am considering selling all my interest in the partnerships this year. It has become complex and causes headaches. Good luck everyone. Dave.

mjk2022

Level 2

Why is turbo tax dragging it feet on the K3 form?

JimmyHatesTaxes

Level 2

I need to file a K-3. Can someone who actually works for Intuit tell us when this form will be available in TT? The IRS has the form available so why is it not in TT?