OSCPA staff report
Despite the IRS transition relief announced last week, OSCPA, AICPA and other state societies are voicing concerns to the IRS over the K-2 and K-3 reporting.
OSCPA signed a letter this week asking the Treasury Department and the IRS to “delay implementation of the Schedules K-2 and K-3 to 2023 (the 2022 tax year filing season) and to suspend any assessment of penalties against Partnerships or S Corporations for failing to file or failing to timely provide Schedules K-2 and K-3 for the 2021 tax year.” AICPA has also issued a similar request.
The letter goes on to state that if the IRS is not prepared to electronically accept the new schedules in time for the initial filing dates of these forms, the filing requirement should apply for tax years beginning after the date the IRS and software providers are able to properly provide and process the new schedules in an electronic format.
This comes after further details on the K-2 and K-3 reporting arrived on Feb. 16 with News Release IR-2022-38. The relief is also outlined in frequently asked questions on the IRS website (see FAQ #15).
Stay up to date through OSCPA’s Monthly Federal Tax Update Webcast. The March 7 session will cover all K-2/K-3 changes and updates.