TP received a K-3 but has no foreign income or taxes.

Forum|Forum|3 years ago
October 8, 2022
3 replies
43 views

Does it need to be filed on the individual return? When I attempt to enter Line A on Part 2, United States is not included in the dropdown list.

ProSeries Basic

This topic has been closed for replies.

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Terry53029

Intuit Community Champion

The schedule K-3 reports a partner’s distributive share of items of international tax relevance and is an extension of the Form 1065 Schedule K-1. If yours is blank you should look at the partnerships instruction if any that came with the K1 or ask the partnership why you received it.

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Love2CruiseAuthor

Level 5

Hello Terry53029!

Thank you so much for your response. The K-2 is not blank. But all reporting is for United States income only!

The following is stated on the K-3 cover....

"Beginning in the tax year 2021, the Partnership is required to report items of international tax relevance on Schedule K-3. This new schedule provides information for the partners to complete their tax return with respect to the international tax provisions. The Schedule K-3 is provided for all partners; however, only a limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the information reported on the Schedule K-3."

Since the section to enter the K-3 information on the K-1 worksheet doesn't have United States listed in the dropdown list, I'm of the mindset that I shouldn't attempt to enter any of the information because I'm unable to record from what country the income is generated. Your thoughts?

dascpa

Level 11

I'm finding total inconsistencies in the international reporting - blank forms, forms with US only, forms with both US and foreign. Th end result is that if there is no foreign taxes paid or accrued it does not affect the bottom line of the tax return, only the presentation of the return. You would need to look at the detail of the K-3 and see what items you might need to report on the tax return including foreign ownership, etc. They took a simple item and made it 20 pages of ...crap.... Just another reason to retire.

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Love2CruiseAuthor

Level 5

Amen dascpa! I've gotten far more gray hairs than I need dealing with all of these changes and requirements without CLEAR guidance and understanding. I've researched the IRS website and so many other professional opinions so much that I'm expecting an email from Google telling me to cease because the clear answer is not to be found! I'm most aggravated that in all of their guidance and instructions, the IRS does not address how taxpayers who receive the K-3 and have no foreign income or paid any foreign taxes should handle the K-3. If it doesn't apply to them, just state in on the website that they need not report the information. Simple as that!!! But what do I know? I'm just someone who tries to use the common sense that God gave me.

sjrcpa

Level 15

@Love2Cruise You're forgetting one of the two basic tenets of tax:

It doesn't have to make sense.

It doesn't have to be fair.

The more I know the more I don’t know.

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RobinH

Level 3

Did you ever find out how to handle reporting the information form K-3 (1065)? I have one and there is no foreign income. There is also nowhere to enter it on ProSeries Professional. I'm at a loss

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