Schedules K-2 and K-3 Enhanced Reporting of International Tax Matters
Starting in tax year 2021, the Internal Revenue Service (IRS) will be expanding the foreign reporting for the K-1s and 1065 to two additional schedules, the K-2 and the K-3. With the growth in international activity among partnerships, the additional schedules are designed to provide clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international tax relevance, including claiming deductions and credits.
With the growth in international activity among partnerships, the additional schedules are designed to provide clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international tax relevance, including claiming deductions and credits. The tax experts have put together the following summary to help you learn more about what these changes may mean for you.
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