Preparing Schedules K-2 and K-3 | CPE Course

BarbriSFCourseDetails

Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Tuesday, June 11, 2024
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

CPE

ALL

This course will discuss required Schedules K-2 and K-3 for reporting partners' income, deductions, and credits from foreign activity. Our panel of highly experienced tax specialists will explain each part of each schedule so that tax practitioners can efficiently meet this reporting obligation. They will review the latest requirements and updates relative to these schedules.

Faculty

John Samtoy

Tax Partner

Holthouse Carlin & Van Trigt LLP

Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on individuals, closely-held businesses, and hedge funds. He has particular expertise in structuring and reporting foreign manufacturing arrangements and foreign holding companies, and is experienced in foreign asset disclosure requirements, as well as foreign trust and estate reporting.

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Mishkin Santa

Principal, Director of International Tax

The Wolf Group, PC

Mr. Santa focuses his practice on repatriation tax, as well as individual income tax compliance, estate, gift & trust tax compliance, FBAR Assistance, foreign trust tax compliance, exit tax planning, EB-5 investor program, international assignment structuring and planning, offshore voluntary disclosure programs, foreign corporation (Subpart F, Transfer Pricing, E&P Studies), and asset protection planning. His client base includes U.S. citizens living overseas, U.S. nonresidents, EB-5 investors, U.S. domestic individuals and families, international businesses, international based families with investments in multiple jurisdictions and tax residency in multiple jurisdictions, U.S. citizens or residents who are beneficiaries of foreign trusts and who will receive gifts or inheritances from non-US persons, and trustees of trusts with U.S. grantors or U.S. beneficiaries.

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Description

Preparing required Schedules K-2 and K-3 continues to be an arduous but necessary task for practitioners. Filed with Form 1065 for partnerships or 1120-S for S corporations, these schedules report international amounts and items allocable to flow-through recipients. For 2023, a domestic filing exception remains for entities meeting specific criteria, including having no or limited foreign activity.

New for 2023 is the reporting of dual consolidated losses, the addition of lines on Part XIII, Foreign Partner's Distributive Share of Deemed Sale Items on Transfer of Partnership Interest, of Schedule K-3. These are used to report additional information for nonresident aliens, foreign trusts, and foreign estates that is needed to complete Schedule P of Form 1040-NR. Practitioners working with flow-through entities must stay abreast of the latest changes to Schedules K-2 and K-3 to properly report foreign flow-through items.

Listen as our panel of international tax experts explains how to complete Schedules K-2 and K-3 and the latest revisions to these schedules.

Outline

Background
Who is required to file Forms K-2 and K-3?
Recent revisions to Schedule K-2 and K-3
Schedule K-2: Parts I-IX
Schedule K-3: Parts I-X
Best practices

Benefits

The panel will review these and other key issues:

Preparing additional required attachments for specified international transactions in Part I
Which partnerships are eligible for the domestic entity filing exception?
2023 revisions to Schedules K-2 and K-3
Which partnerships are required to include Schedules K-2 and K-3 in returns?
Complexities in reporting funds and private equity investments on Schedules K-2 and K-3
Correctly reporting CFC income and GILTI inclusions in Part V
How foreign tax credits and income are recorded

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Understand the reporting requirements for Schedules K-2 and K-3
Determine which partnerships are eligible for the domestic entity filing exception
Ascertain the steps needed to prepare for reporting international activity on Schedules K-2 and K-3
Verify that Schedules K-2 and K-3 are correctly completed
Recognize the penalties applicable for filing noncompliance

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.