At the time of this blog post, the IRS was still making changes to its approach to Schedules K-2 and K-3 in response to push-back from tax professionals and other parties. In particular, the American Institute of Certified Public Accountants (AICPA) and other organizations were encouraging the IRS to delay the new Schedule K-2 and K-3 filing requirements, offer greater relief for 2021 filings, or otherwise waive first-year penalties.
We expect that the IRS’s requirements and guidance will continue to evolve over the coming weeks.
At The Wolf Group, we are monitoring these developments and continuing to evaluate the approaches that are in the best interest of our clients. If you have questions on the new Schedules K-2 and K-3 or need assistance complying with the additional foreign reporting, please contact us. The Wolf Group has assisted clients with foreign disclosures and related tax form preparation for nearly four decades.