Most passthrough entities will not have to file Schedules K-2 and K-3 for tax year 2021, according to new guidance from the IRS.
The tax professional community heavily criticized the new schedules, which the IRS released during the current tax season.
The schedules aim to make international tax items less obscure for partners and shareholders who need the information to file their own returns. The IRS also intended the new schedules to verify compliance more efficiently.
The transition relief applies under these conditions.