When will Schedule K-3 be Released

[David723]

It's a natural first reaction to want to sell the partnerships that create K-1 1065 and the new K-2 and K-3.  Even though my partnership stock price is down, the real value to my tax liability is the partnership losses and interest expenses which I use to lower my personal tax liability.  For instance, before entering all the K-1 numbers, I owe about $12,000.  After entering I have a refund of $8,500.  So, personally, $20,500 is worth the extra steps and headaches associated with owning partnership shares.  The IRS and TT will come to some resolution by adding the K-2/3 to the software.  I hate the paperwork as much as you do, but the tax reduction is worth it to me.  My old father used to tell me to "breathe, breathe" and try to look at things from a different angle.  Good luck to us all this tax season.

[David723]

All TT is telling anybody is the IRS is supposed to have the K-3 for 1065 in XML format by yesterday 3/20.  That's no guarantee and there's no guarantee either that TT will encorporate it in the software any time soon.  This is why the IRS is easing the requirement for "most" without foreign taxes on the K-1 to wait until next year to file.  I DO have foreign taxzes, so I'll problem uncheck box 16, file on time, and file an amended return in August/September when my partnership has their official K-3 available.

[David723]

You CAN'T file a PDF attachment or even add special notes to TT efiled returns.  That they have made clear throghout this strand.  To add a PDF attachment, you have to file a paper return and mail it, but the IRS may not process it for months up to a year from now.

[Anonymous_]

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@David723 wrote:

....the real value to my tax liability is the partnership losses and interest expenses which I use to lower my personal tax liability.  

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I am not sure how this is happening for you, but whatever. Are you a limited partner? 

There are a number of loss limitations, some of which are not easy to circumvent.

See https://proconnect.intuit.com/articles/k1-issues-for-individual-taxpayers-general/

[mjk2022]

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

[Foolishtom]

Patricia,

Thank you very much on the K-3 update.

Before filing, I have one question about Form 4797 information Turbo Tax asks for 2019 prior year.

I'm making a guess the figure asked for is from the K-1 Box 1, ordinary income number. For 2021, TT is showing the K-1 Box 1 figure. 

I don't see the form in my tax return "forms." is this an internal TT record keeping function?

Thank you very much for your time.

Tommy Two Shoes

[AliciaP1]

Sort of, it is used to determine if you have any loss carryforwards for Qualified Business Income.  You are correct using the box 1 amount from your K-1.

@Foolishtom

[Foolishtom]

Alicia,

I apologize for reading your name incorrectly!

It was as round about as sort of getting the number correct in my mind.

Thank you for your help. Sorry I knocked your name round.

Regards,

Tom

[JimmyHatesTaxes]

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?

[davidtayar]

Good luck getting a direct answer. 

[GTay]

At https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotaxbusiness_fed_windows_partne... Intuit claims that Form K-3 is already available for print filing and is (and will continue to be?) unsupported for e-file.

Unfortunately TurtoTax itself still says that it's not available at all.

[David723]

In other parts of this string TT says they’re waiting for the xml electronic version of the K-3, 1065 from the IRS and only after receipt of the form will they be able to build it into the software. 
TT is creating much stress and anger amongst its users and would do us all a service by providing release dates for the update with the K-3 form. 

[Allen2021]

The IRS states that we can attach the forms to the tax returns. It will save much stress about this issue if Turbo Tax will make this accommodation for this year. I have the forms but the obstacle is TurboTax. 

I will likely change to another tax software for 2022. We have waited weeks to file when allowing an attachment seems simple.

[jeff7]

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

[PatriciaV]

@jeff7 Thanks for the update! Where you able to update all info from Schedule K-3? Did you e-file successfully?