Probably not. The IRS’s FAQs on Schedules K-2 and K-3, released in mid-February 2022, clarified that many partnerships and S corporations, including those that do not have foreign assets or operations, may need to file the new forms: “In many instances, a partnership or [...]
The timing of your Schedules K-1 (and K-3, if applicable) will depend on how quickly your partnership or S corporation can finalize its business returns and issue you the Schedules K-1 and K-3. Right now, these forms are somewhat of a moving target. As [...]
Maybe, but don’t count on it. Be prepared to file an extension. The IRS has already informed partnerships and S corporations that any of their returns with Schedules K-2 and K-3 will likely need to be filed on extension. This means it’s unlikely that [...]
You will likely see two main differences this year: More detailed information will be provided to you for the preparation of your individual income tax filings. Your K-1s (and K-3s, if applicable) may arrive later this year. This may delay your individual tax filings. [...]
Formerly, Schedule K (on the business tax return) and Schedule K-1 (issued to you) did not require any specific format to provide international information. As a result, many details needed for the accurate preparation of your individual income tax returns were either lumped together [...]
Schedule K-2 is a new 14- to 19-page form with up to 11 sections. It is filed as part of the partnership or S corporation tax return. It reports items of international tax relevance from the operation of the business. Since this form gets [...]
Although these new requirements mostly affect certain partnerships and S corporations, they may affect you if you are: An individual who receives a Schedule K-1 from a partnership or S corporation. In this case, you may not receive your K-1 (and new K-3, if [...]
If you agree with the proposed changes in the notice, you can follow the instructions and accept the changes quickly. If, however, you disagree with the proposed changes, the process takes longer. From the time you respond to the notice, you can expect a [...]
Tax notices are generally issued for the following reasons: Payment discrepancies If you make quarterly estimated tax payments, extension payments, or payments of balances due, the IRS records those payments in your account. However, we commonly see cases in which the IRS has [...]
If you are like many G-4 visa holders who retire and obtain green cards, retirement is the first time you are interacting with the US tax system. US lawful permanent residents (green card holders) are taxable in the US on their worldwide income and [...]
