This schedule is provided to both you and the IRS, and it reports your share of income, deductions, credit, and international informational reporting items. It is needed for the preparation of your individual income tax returns. It is basically an expansion of Schedule K-1 to provide greater detail to you on your share of the business’s international tax items. Schedule K-3 is a 15- to 20-page form with up to 13 sections. Since this form gets filed as part of the business return, you won’t see a copy unless you see the complete business tax returns. It reports items of international tax relevance from the operation of the business. It is filed as part of the partnership or S corporation tax return. Schedule K-2 is a new 14- to 19-page form with up to 11 sections. See our Frequently Asked Questions for filers of Form 8865. If you file Form 8865, you are required to include the new schedules with your returns this year. An individual who typically files Form 8865 as part of your individual income tax return to report ownership in a foreign partnership.This could delay your individual tax return filings.

In this case, you may not receive your K-1 (and new K-3, if applicable) until later than usual.

An individual who receives a Schedule K-1 from a partnership or S corporation.Will the new Schedule K-2 and K-3 filing requirements affect me?Īlthough these new requirements mostly affect certain partnerships and S corporations, they may affect you if you are: Consulting for Miners, Investors and Traders.International Organization Employees & Retirees.

Sample of k1 form