Partnership Tax Compliance and Navigating IRS Examinations: Reporting Requirements, Best Practices

Tax compliance for partnerships and other pass-through entities has become more complex over the past few years. Tax counsel must recognize the challenges of reporting requirements for international and other partnership transactions and implement strategies to ensure compliance.

IRS guidance for implementing international reporting requirements for pass- through entities with global operations or foreign partners highlights the need for efficient planning for impacted taxpayers. Tax practitioners must understand the application of various international tax provisions at the partner or S corporation shareholder level to properly assess international transactions, foreign tax credit limitations, and required tax forms.

The addition of Schedules K-2 and K-3 to partnership reporting requirements beginning in 2021 add complexity around foreign reportable items.

The IRS has shifted its focus to partnership enforcement efforts and our tax controversy experts have seen a sharp increase in partnership audits. Understanding what’s behind the shift and how it is impacting taxpayers will help tax counsel plan effectively for future audits.

Listen as our panel of partnership tax and tax controversy experts discusses changes in international reporting requirements for international transactions, how to prepare for increasing IRS enforcement, and tax planning considerations for pass-through entities.

1. IRS guidance for reporting international transactions
2. Schedule K-2 and K-3 requirements and challenges
3. Best practices and planning considerations for tax professionals
4. Lessons learned from IRS partnership audits

The panel will review these and other key issues:

• What is the current focus of IRS examination for pass-through entities?
• Who must file Schedules K-2 and K-3?
• What documentation is required for specified international transactions?
• Complexities in reporting funds and private equity investments
• Correctly reporting CFC income and GILTI inclusions
• Best practices for tax professionals to ensure compliance
• Audit procedures and takeaways under the BBA

Learning Objectives

After completing this course, you will be able to:

• Identify specific items that are reportable on particular parts of the Schedule K-3
• Determine where foreign tax credits are reported on the schedules
• Ascertain whether each part is required to be completed for certain partnerships
• Decide which partnerships must use Schedules K-2 and K-3

• 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.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).