In July 2021, the Internal Revenue Service (IRS) formally introduced Schedules K-2 and K-3. These forms bring uniformity and consistency to reporting items of international tax relevance to partners and S corporation shareholders on the foreign activity of a partnership or S corporation. Unfortunately, Schedule K-3 can add up to 20 additional pages to a partner’s or shareholder’s Schedule K-1.

Michael Elliot, Director with the Firm’s national tax team, joins this edition of the Tax Beat podcast with Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, to share his insights on filing Schedule K-2 and K-3 for 2022. More importantly, Mike discusses the exceptions to the required filing of these forms for partnerships and S corporations.

The podcast covers:

  • 4:51 — 2021 Pushback on Relief
  • 5:50 — Importance of Filing Correctly
  • 8:20 — 2021 Relief Notice No Longer Effective for 2022
  • 14:55 — Qualifying for the Domestic Filing Exception
  • 16:34 — Tiered Partnerships and Limited Foreign Activity
  • 19:49 — Opting in vs. Pursing an Exception to Filing
  • 21:30 — K-3 Filing Difficulties

Additional Insights:


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Brooks E. Nelson

Tax Services

Partner, Cherry Bekaert Advisory LLC

Sarah McGregor

Tax Services

Director, Cherry Bekaert Advisory LLC

Michael Elliot

Tax Services

Director, Cherry Bekaert Advisory LLC

Past Episodes

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20:43

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Learn how to claim disaster losses and defer casualty gains under IRS rules. Explore relief measures for individuals and businesses affected by disasters.

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Dive into the HITRUST framework, exploring its certifications, benefits, and why it's essential for achieving industry compliance and strong security.

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November 7, 2024

22:13

Speakers: Brooks E. Nelson, Sarah McGregor, Martin Karamon

Learn about the ERC's voluntary disclosure program, IRS moratorium, and how employers can navigate claim eligibility and refund processing changes.