TurboTax says Schedule K-3 will be available in a future release. When will that be?

[MaryK4]

For 2022, TurboTax is not supporting efile of the Schedule K-3.  (See Partnerships.)  You can print and mail the forms.  

Please see Schedules K-2 and K-3 Frequently Asked Questions (Forms 1065, 1120S, and 8865 for more information from the IRS.  There is additional relief for certain partnerships preparing schedules K-2 and K-3 for 2021.

[peter-harris]

I'm not sure this is a correct answer?

The reply says TurboTax will not be supporting K-3s this year. Box 16 on the PDF copy of my K-1 is checked, indicating that Schedule K-3 is attached. I want to e-file and TurboTax won’t let me until my K-3 is created, which TurboTax says won’t happen this year based on the reply I received.

However, the TurboTax screen I see says Schedule K-3 won’t be available until a future release.

So – what am I supposed to do. Wait (until when?) for the future release or un-check Box 16 on my Schedule K-1? I've already printed out my K-3 and will gladly mail it to the IRS but the only way I can e-file is to either wait for the future release or un-check Box 16.

I was going to file today but that seems unlikely now.

[Cynthiad66]

Seems like you are not required to file this form for 2021 per an IRS announcement.  This information was provided by one of our Experts @MinhT1

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:

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.

Use this link for additional information:  IRS Provides Further Guidance on K-2 and K-3 Relief

[jzabala]

I have this same issue - if we aren't required to file, can TurboTax be corrected to allow E-File of the Federal Return?

[peter-harris]

FWIW, I unchecked the TurboTax box that asked if I had a K-3. That way, I could get the Federal review completed and get e-filed. Then I printed out a copy of my K-3 and mailed it to the IRS - certified. Between the TurboTax folks and what I read on the IRS website it wasn't clear to me what to do, and the only way to get my return successfully reviewed and e-filed was to uncheck that box.

[jzabala]

Well...I figured as much, given the responses and verifying the IRS announcement of the relief. In my case, my issue is my K-3 doesn't seem to be available and probably won't be in time. Fortunately, I do have a supplemental K-1 which apparently supplies the same information. Figured I'd still ask for the "legitimate" software fix regardless.

[jhjjhj]

So I just uncheck the box and send in the form?  Does it affect the amount of taxes owed?

[peter-harris]

It didn't make any difference on mine. I'm definitely not an accountant or tax professional but it appears what the K-3 does, basically, is split out the amount of domestic vs foreign shown on the K-1. My K-3 had no foreign component so it wouldn't have affected my taxes. I don't know what the effect would be for someone who did.

[nblizard]

What is the workaround?  Can I still efile and just mail (certified) the K3s or do I have to skip efiling altogether and mail all forms (1040 and all schedules and K1-K3s) in one bundle? 

[JamesG1]

You may mail the tax return.  Some are choosing to "uncheck" the box indicating that a K-3 is attached so that you can electronically file now.  But in that case, you may need to amend your tax return at a later time.  

The IRS announced on February 16, 2022 that most K-3 reporting for 2021 can be delayed until the 2022 tax return filing, but they have not indicated how individual taxpayers should proceed.  

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."

See also this IRS FAQ.

@nblizard

[suzyq261]

I do have foreign transactions with foreign tax paid and will need to file the form to take the foreign tax credit.  My K-1's did include the K-3 schedules.  Do I just uncheck the box 16 and report directly on the foreign tax credit form?  And then mail in the K-3 schedules provided with my K-1's?

[jeff7]

It appears the latest update for TT Desktop (WIN)  includes the ability to add Sch K-3 info.

[jeff7]

UPDATE: Seems to all work fine, atleast in my situation. 

[raybeyond]

Can you e-file K3?  My k3 won’t be available until August 31 2022.