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Preparing Schedules K-2 and K-3: New Domestic Filing Exception, 2023 Revisions, Reporting Foreign Activity

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, June 11, 2024

Recorded event now available

or call 1-800-926-7926

This course will discuss required Schedules K-2 and K-3 for reporting partners' income, deductions, and credits from foreign activity. Our panel of highly experienced tax specialists will explain each part of each schedule so that tax practitioners can efficiently meet this reporting obligation. They will review the latest requirements and updates relative to these schedules.

Description

Preparing required Schedules K-2 and K-3 continues to be an arduous but necessary task for practitioners. Filed with Form 1065 for partnerships or 1120-S for S corporations, these schedules report international amounts and items allocable to flow-through recipients. For 2023, a domestic filing exception remains for entities meeting specific criteria, including having no or limited foreign activity.

New for 2023 is the reporting of dual consolidated losses, the addition of lines on Part XIII, Foreign Partner's Distributive Share of Deemed Sale Items on Transfer of Partnership Interest, of Schedule K-3. These are used to report additional information for nonresident aliens, foreign trusts, and foreign estates that is needed to complete Schedule P of Form 1040-NR. Practitioners working with flow-through entities must stay abreast of the latest changes to Schedules K-2 and K-3 to properly report foreign flow-through items.

Listen as our panel of international tax experts explains how to complete Schedules K-2 and K-3 and the latest revisions to these schedules.

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Outline

  1. Background
  2. Who is required to file Forms K-2 and K-3?
  3. Recent revisions to Schedule K-2 and K-3
  4. Schedule K-2: Parts I-IX
  5. Schedule K-3: Parts I-X
  6. Best practices

Benefits

The panel will review these and other key issues:

  • Preparing additional required attachments for specified international transactions in Part I
  • Which partnerships are eligible for the domestic entity filing exception?
  • 2023 revisions to Schedules K-2 and K-3
  • Which partnerships are required to include Schedules K-2 and K-3 in returns?
  • Complexities in reporting funds and private equity investments on Schedules K-2 and K-3
  • Correctly reporting CFC income and GILTI inclusions in Part V
  • How foreign tax credits and income are recorded

Faculty

Samtoy, John
John Samtoy

Tax Partner
Holthouse Carlin & Van Trigt

Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on...  |  Read More

Santa, Mishkin
Mishkin Santa, JD, LLM, TEP

Principal, Director of International Tax
The Wolf Group

Mr. Santa focuses his practice on repatriation tax, as well as individual income tax compliance, estate, gift &...  |  Read More

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