A Practical Approach to Quickly Filling Out Forms K-2 and K-3
Author: Greg White
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Law Updates for OTRPs
1 hour Federal Tax Updates for CTEC |
The IRS recently updated filing rules on the requirement for S corporations and partnerships to file Schedules K-2 and K-3. All S corporations and partnerships must either file these forms or qualify for an exemption. Greg will cover how to quickly and efficiently file Forms K-2 and K-3 for 99% of your clients. File Forms K-2 and K-3 now for almost all your partnerships and S corporation clients.
Publication Date: February 2022
Topics Covered
- Why does IRS want all this foreign information?
- Dropping the Ball
- Relief
- Tricky Areas
- Why is 1120S K-2 different from 1065 K-2/K-3?
- Strategy
- Schedule K-2 & K-3 Example
Learning Objectives
- Recognize how to prepare Forms K-2 and K-3
- Identify clients who qualify for exemption
- Describe the documenting qualification for the exemption
- Identify how many examples the IRS provides of why partners who complete F1116 would need info from entities that have no foreign activity
- Identify the calculated amount of penalty per month per partner for failure to file
- Identify one of the relief hurdles based on the IRS FAQs
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Basic tax preparation experience.
Advance Preparation
None
