In a jolting move, IRS has made every domestic (U.S.) Form 1065 and 1120-S preparer responsible to prepare and file Schedules K-2 and K-3 (re: international) (though most often apparently not needed) or else do extensive new due diligence to sidestep filing. This course shows you exactly what to do in response.

This course is updated for December 2022 (and prior) new developments.

• IRS has newly launched Instructions for 2022 Schedules K-2 and K-3


• Exceptions to K-2 K-3 filing for domestic entities remain


• But, IRS’s newly revamped filing relief carries a heavy workload


• Partnerships (and S Corps) must now (to meet filing relief), in January 2023, ascertain whether K-2 and K-3 are needed


• New admin burdens abound, forcing all-new admin duties on preparers


• Newly revamped Instructions for partners receiving K-3s have also been released!


• Is it simpler to just file K-2 and K-3 for the purely U.S. entity? Probably! If so, how do you do that?

• Identify how new Schedules K-2 and K-3 knock Forms 1120-S and 1065 out of orbit and impose stunning new duties on 1120-S and 1065 preparers’ shoulders


• Review how to prepare (or not) K-2 and K-3 for “U.S. financial activity only” pass-throughs (99% of our clients)


• Demonstrate how the IRS’ all-new 2022 Draft K-2 K-3 Instructions provide new K-2, and K-3 relief (but you still have to do a lot of right things to qualify)


• Recognize the penalties (and consequences) for both preparers and taxpayers regarding K-2 and K-3 (and K-1) for failures to report


• State IRS guidance on avoiding trouble and penalty relief


• Determine how every S Corp and domestic and foreign partnership must immediately concern itself with all-new Schedules K-2 and K-3


• Summarize qualifying for and documenting one of 2 new exceptions for filing K-2 and K-3