Alternative Investment

Expansion of the K-1 and 1065

Schedules K-2 and K-3 Enhanced Reporting of International Tax Matters 

Starting in tax year 2021, the Internal Revenue Service (IRS) will be expanding the foreign reporting for the K-1s and 1065 to two additional schedules, the K-2 and the K-3. With the growth in international activity among partnerships, the additional schedules are designed to provide clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international tax relevance, including claiming deductions and credits. 

With the growth in international activity among partnerships, the additional schedules are designed to provide clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international tax relevance, including claiming deductions and credits. The tax experts have put together the following summary to help you learn more about what these changes may mean for you.

Download our summary here:

Please contact Steve Vlasak for any questions regarding this summary or the services Richey May provides to the Alternative Investments industry.