Schedule K-2 is an extension of Schedule K of Forms 1065 and 1120S and is used to report items of international tax relevance from their operations. Schedule K-3 is an extension of Schedule K-1 and is generally used to report to partners their share of the items reported on Schedule K-2.
Schedule K-3 will not be provided by entities that only have partners/shareholders that are US citizens or resident aliens unless a Schedule K-3 is requested.
If a partner/shareholder wants Schedule K-3 with their year-end Schedule K-1, it is the duty of the partner/shareholder to request it from the partnership/S corporation. This request should be made by the partner/shareholder one month before the due date for filing the partnership/S-corporation return.
Consequently, a partner/shareholder who wants a Schedule K-3 with their BKC issued Schedule K-1, must inform the eligible partnership/S corporation on or before February 15 and if an extension is filed by the partnership/S corporation on or before August 15, 2023.
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