Jeff Bilsky, Neal Weber, and Michael Masciangelo, tax experts for the National Partnership Taxation Technical Practice Leader, Core Tax Services, and International Tax Services, respectively, have made available for download their article “IRS Issues Draft Instructions, Provides Penalty Relief for New Schedules K-2 and K-3”, published on BDO USA. The abstract is as follows:
On June 30, 2021, the IRS released early draft instructions for Schedules K-2 and K-3. These schedules, which are new for the 2021 tax year, are required to be filed with Forms 1065, 8865 and 1120-S of pass-through entities with “items of international tax relevance.” On the same date, the IRS issued Notice 2021-39 to grant transition period penalty relief for eligible taxpayers with respect to the new schedules. The IRS released final Schedules K-2 and K-3 on June 3 and June 4, 2021.
Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.