CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Flash Sale on Select Conference Locations Ends Friday – Up to 40% off

Tax Byte

If you’ve had a chance to review the draft 2022 Partnership Instructions for Schedules K-2 and K-3 (Form 1065) the IRS dropped yesterday, you may have noticed it came bearing good news. Not in like an angel way or anything but in that special IRS-exception way. 

Domestic Filing Exception

Scroll down to item 1 on page 3 of the draft instructions, and you’ll see a domestic filing exception for Schedules K-2 and K-3.  The instructions state that a domestic partnership need not file the Schedules K-2 and K-3, or furnish to a partner the Schedule K-3 (except where requested by a partner after the “1-month date”), if each of the four listed criteria are met with respect to the partnership’s
tax year 2022. Most notably, the schedules do not have to be filed if no more than $300 of foreign income taxes allowable as a credit under section 901 are treated as paid or accrued by the partnership.

Course Coming

You asked; we listened. After you take a look at the draft instructions, keep an eye out for a related Western CPE course coming soon. Together we’ll walk through these new draft 2022 instructions and demystify the filing of the (new-ish) Schedules K-2 and K-3 for Form 1065.

STAY TUNED

Stay updated with more breaking tax-related developments by subscribing to Tax Bytes with Jessica Jeane, J.D.

Recent Stories

Next Up...

For the first time since 2022, the IRS raised the mileage rate midyear. 2026 now
2 min read
The no-tax-on-overtime deduction covers only the extra half of time-and-a-half. Learn the limits and why
2 min read
For clients selling appreciated property in late 2026, waiting to fund a QOF until 2027
2 min read