That is a form related to a Form 1065.
See also https://www.journalofaccountancy.com/news/2022/feb/irs-offers-further-k-2-k-3-relief.html
Thank you for the reply,
So based on what I've read, it should be available on or after March 20, 2022 for TurboTax?
I read it on this one,
Based on what you mentioned, does that mean I do not need to file the Schedule K-3 even though the Box 16 in my K-1 I received is checked marked?
My concern is that every time I go to "Needs Review", it mentions this checkbox and that Schedule K-3 will be available in a future release. I don't want to uncheck because my K-1 has it checked,0
Most Forms K-2 and K-3 forms do not need to be filed for the 2021 tax 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.
Yes, the IRS suspended the requirement for K-3 for some taxpayers. But we who do have foreign income and don't fit the criteria for the suspension still need the capability to input K-3 data into TurboTax for individuals.
So when will Inuit provide that functionality in TurboTax?
My K-1 is from USO and has this bit of info included:
Beginning in tax year 2021, items of international tax relevance are now provided by the Partnership on Schedule K-3. A limited number of unitholders (primarily foreign unitholders as well as certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. The IRS has recently provided additional Schedule K-3 guidance, and we will continue to monitor any future changes impacting our partners. Accordingly, the Schedule K-3 is not included in the enclosed tax package and will be available online at www.taxpackagesupport.com/unitedstatescommodityfunds by August 31, 2022
Should I uncheck the Box16 then or continue to wait for the new release even though there isn't foreign tax income on the schedule K-3?
Yes, uncheck the box and file your return. just 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.
I have the same issue. When will the Turbo Tax include the function in the tx program?
So, I assume using will have to keep checking for updates around 3/20/2022 for the K1-K3 Schedule?
Yes, you may wish to check for updates (either online or in the desktop software) later in the year, or when you receive Schedule K-3 from your investment. In either case, you should wait to file an amended return until after you receive your refund or when you are certain your original return has been accepted and processed by the IRS.
Per the IRS:
Schedules K-2 and K-3 will be available for MeF/XML filing in the following time frames. If you electronically file your return before the time frames, submit the schedules as separate PDF files attached to the return. Taxpayers will also be able to file their Schedules K-2 and K-3 via PDF attachments for the entire 2022 filing season.
Form 1065, Schedules K-2 and K-3 March 20, 2022
Form 1120-S, Schedules K-2 and K-3 Mid-June 2022
Form 8865, Schedules K-2 and K-3 January 2023
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?
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.
The IRS website already shows the 2021 1065 K-3 form and it's downloadable as a pdf file. This might mean your programmers have the ability to incorporate the IRS form into the TurboTax desktop software now. Are you able to contact your programming managers about this? I see a lot of people asking your for help with updating the software.
Per the IRS:
Schedules K-2 and K-3 will be available for MeF/XML filing in the following time frames. If you electronically file your return before the time frames, submit the schedules as separate PDF files attached to the return. Taxpayers will also be able to file their Schedules K-2 and K-3 via PDF attachments for the entire 2022 filing season.
Form 1065, Schedules K-2 and K-3 March 20, 2022
Form 1120-S, Schedules K-2 and K-3 Mid-June 2022
Form 8865, Schedules K-2 and K-3 January 2023
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:
"We suggest you periodically update your TurboTax installation after that date, and check to see if Schedule K-3 has been added."
And here I am again pointing out that the absence of Turbo Tax Release Notes is ridiculous. Just another example why they are needed.
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!