Tax Filing Update - K-2/K-3 Filings for Partnerships (LLC) and Subchapter S Corporations

As we had hoped, the IRS finally issued guidance that is relaxing its rules for domestic pass-through entity K-2/K-3 filings for Partnership (LLC) and Subchapter S Corporate income tax filings for 2021 only.  In general, pass-through entities that have no foreign partners or foreign activity will meet exceptions allowed by the IRS and not have to file Schedules K-2 or K-3 for 2021.Any pass-through entity with foreign partners or foreign activity in either 2020 or 2021 will still need to file Schedules K-2 and K-3 and will need an extension this year to allow for this filing.What this means for you:

• You can breathe a sigh of relief!
• If you have already submitted your information, our team of experienced staff is working to complete your returns as usual.
• If you have not already done so, bring us your 2021 information. Business returns are due March 15.

If you would like more details, see the IRS FAQ for Schedules K-2 and K-3 question 15 at this link: https://www.irs.gov/businesses/schedules-k-2-and-k-3-frequently-asked-questions-forms-1065-1120s-and-8865.