February 18, 2022


Live Webcast


2 CPE Credits

Schedules K-2 & K-3: Why Even Partnerships and S Corporations with No Foreign Activities or Members May Need to Prepare These Forms

February 18, 2022
Live Webcast
2 CPE Credits

Schedules K-2 & K-3: Why Even Partnerships and S Corporations with No Foreign Activities or Members May Need to Prepare These Forms

  • View Bio

    Instructor

    Edward
    Zollars

    View Bio

Learning Objectives

  • Prepare Schedules K-2 and Schedules K-3 for 2021 partnership income tax returns
  • Use information from Schedule K-3 included with a partners’ K-1 to prepare the individual return
  • Recognize situations where the penalty relief for 2021 can be applied, as well as understand penalties the IRS claims it can assert if the form is not properly completed
  • Advise clients regarding the comprehensive partnership audit regime and recognize those that may opt out.
  • List the dates the IRS expects to allow full MeF/XML filing for Schedules K-2 and K-3 for various entity types
  • Advise clients on the use of the interim period option to attach PDFs
  • Identity partnerships and S corporation data needed by clients to prepare international tax information
  • Understand what data must be obtained from partners/shareholders for a partnership or S corporation to potentially not be required to file Schedules K-2 and K-3
  • Be able to use the decision worksheet provided to assist in advising clients whether Schedules K-2 and K-3 should be completed as part of a Form 1065 or 1120S 2021 income tax return.

Major Topics

  • The IRS project that lead to the requirement to prepare and file Schedules K-2 and K-3, from its origins in 2020 to finalization in 2021
  • The original instructions and why the sentence many entities believed meant they didn’t have to file this form turned out not to mean what the entities thought it did.
  • Determining if your entity is required to file these returns and the possible steps that could be taken to avoid this requirement (as well as why the cure may be worse than the disease in many cases)
  • The option to claim the foreign tax credit without filing Form 1116 in certain cases that, if used by all equity holders of the entity, may allow the partnership to skip the preparation of these schedules.

CPE Credits Available

2 CPE Credits
2
Taxes

Things to Know About This Course

Course Level

  • Update

Professional Area of Focus

  • Tax
  • Taxation

Prerequisites

None

Advanced Preparation

None

Provider

maryland association of cpa's

This event has ended.