Schedules K-2 and K-3 for reporting partners' income, deductions, and credits from foreign activity are now required for passthrough returns (Form 1065, 1120-S and 8858). This requirement starts with returns with a tax year that ends in 2021. This course will discuss each part of these schedules and explain these new reporting obligation in detail.

Program Content:

Schedules K-2 and K-3 are promulgated by the IRS in order to standardize the reporting of foreign-related tax information for pass-through entities. Even pass-through entities that have no foreign activities, investments, or partners may have a reporting requirement. This course will present an introduction to Schedules K-2 and K-3, review the filing requirements, and discuss the different parts of the schedules and what needs to be included.

· Purpose of K-2s and K-3s
· IRS Guidance for Preparers and Taxpayers
· Domestic Filing Exception
· Other Considerations

Learning objectives:
By the end of the course, the participant should be able to:

1. Understand the purpose of Schedule K-2 and Schedule K-3
2. Review components of each form and the areas which will need to be completed.
3. Learn about these new forms that affect partnerships and S Corporations.
4. Find out when they must be filed.
5. Determine which taxpayers need to complete these forms.