Schedule K-2 and K-3 reporting requirements have been challenging, to say the least. For starters, you have confusing guidance on who needs to file and who qualifies for relief from stiff penalty provisions. In addition, you need to know how these forms change the calculation of foreign tax credit on Form 1116, how they impact Form 1118 and whether Form 8865 filers have to worry about K-2 and K-3. Plus, there are new instructions to sift through. Examine these issues and clarify how Schedules K-2 and K-3 affect the foreign tax credit calculation. Walk through examples and practical language so you understand how Form 1116 and other forms are impacted by the new requirements.
Who should attend?
Tax professionals who prepare S Corporation and/or partnership tax returns
Major subjects:
*Schedule K-2 and K-3 -- overview and who needs to file
*Filing exceptions, penalties and penalty relief
*Key parts of Schedules K-2 and K-3
*Four buckets of the foreign tax credit and how they differ
*How Schedules K-2 and K-3 feed into Form 1116
*Major areas of Form 1116 that are affected by Schedules K-2 and K-3
*How K-2 and K-3 feed into Form 1118 for corporations
*Form 8865 and how Schedules K-2 and K-3 affect these filers
*Relevant news on updated instructions
Learning objectives:
*Identify situations where Schedule K-2 or K-3 must be filed for a partnership or S Corporation
*State potential fixes for failure to file Schedule K-2 or K-3
*Recognize the key parts of Form 1116 that are affected by Schedules K-2 and K-3
*Understand which taxpayers do not need to file Form 1116
*State how Form 1118 is affected by Schedules K-2 and K-3
*Identify which Form 8865 filers need to file Schedule K-2 and K-3
Level: Update
Prerequisites: Basic understanding of pass-through entity and individual tax preparation recommended
CPE Credits: 4
Area of Study: Taxes - Technical (4)
Instructors:
David Peters
David Peters is the founder and owner of Peters Tax Preparation & Consulting in Richmond, VA, as well as a financial advisor for Peters Financial, LLC. He has over fifteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever chief financial officer at Compare.com - a position he held for over three years. He is a national CPE instructor/discussion leader for the AICPA, Kaplan and Surgent, and was a recipient of Surgent's Outstanding Discussion Leader award for 2019. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics throughout the United States. He is the advisor for business & industry topics for the SC Association of CPAs and was a recipient of The American College's 2019 NextGen Financial Services Professional Award. He holds four Mastersdegrees, and is currently pursuing his PhD in Financial Planning. He contributes regularly to various CPA publications, including NCACPA's Interim Report, SCACPA’s CPA Report, and VSCPA's Disclosures. He was also a co-author of the 2018, 2019, and 2020 versions of the Virginia CPA Ethics course – a requiredcourse for all CPAs licensed in the Commonwealth of Virginia.
