Schedule K-3 release in August

Forum|Forum|4 years ago
March 17, 2022
2 replies
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Just received K-1 today and box 16 is checked.

But the partenership says it won't give the K-3 until end of August so does that means I won't even be able to

print and send by even if I wanted to, correct?

Second question:

On the K-1 there is only loss (no gain), would that mean that I am safe in terms of not owning money to the IRS?

What I mean is that if I file just the K-1 even if a K-3 comes later, it won't effect the taxes I owe the IRS will it?

Cynthiad66

Since IRS is not requiring the form for 2021, we suggest that you uncheck the box 16 and file your return. One question, is there anything recorded on the K3 such as a foreign tax credit? If so, you may wish to amend your return once the K3 is available in Turbo Tax to claim the credit.

Most forms K-2 and K-3 forms do not need to be filed this year. The IRS announced on Tuesday February 15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return filing.

This is an extract of the IRS announcement:

@PAGB

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PAGBAuthor

Thank you for answering

I think you are referring to below?

I'm a little confused what this means though. We have a K-1 that was given to us by Proshares because we invested in ETF's through them. Does this mean since Proshares is not a foreign entity this exemption applies to us?

The IRS is providing an additional exception for tax year 2021 to filing the Schedules K-2 and K-3 for certain domestic partnerships and S corporations. To qualify for this exception, the following must be met:

- In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates or foreign trusts.
- In tax year 2021, the domestic partnership or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated or may reasonably expected to generate foreign source income (see section 1.861-9(g)(3)).
- In tax year 2020, the domestic partnership or S corporation did not provide to its partners or shareholders nor did the partners or shareholders request the information regarding (on the form or attachments thereto):
  - Line 16, Form 1065, Schedules K and K-1 (line 14 for Form 1120-S), and
  - Line 20c, Form 1065, Schedules K and K-1 (Controlled Foreign Corporations, Passive Foreign Investment Companies, 1120-F, section 250, section 864(c)(8), section 721(c) partnerships, and section 7874) (line 17d for Form 1120-S).
- The domestic partnership or S corporation has no knowledge that the partners or shareholders are requesting such information for tax year 2021.

If a partnership or S corporation qualifies for this exception, the domestic partnership or S corporation does not need to file Schedules K-2 and K-3 with the IRS or with its partners or shareholders. However, if the partnership or S corporation is subsequently notified by a partner or shareholder that all or part of the information contained on Schedule K-3 is needed to complete their tax return, then the partnership or S corporation must provide the information to the partner or shareholder. If a partner or shareholder notifies the partnership or S corporation before the partnership or S corporation files its return, the conditions for the exception are not met and the partnership or S corporation must provide the Schedule K-3 to the partner or shareholder and file the Schedules K-2 and K-3 with the IRS.

barry13

This is yet another reason why I am exiting all my Proshares ETF investments -- not worth the K1, K3 hassle during tax season. Proshares is the absolute worst ETF. Thought this would be the last year of this nonsense, but now I need to deal with their K3s next year!!! ARGGGGG!!! Avoid at all costs!!!