The IRS recently posted three updates to their website providing specific changes to the Schedules K-2 and K-3 instructions for all pass-through filers on Jan. 18, 2022. The modifications update and clarify various aspects of the new tax year 2021 reporting requirement and also add additional reporting exceptions and examples.
For the most part, these changes bring welcome clarifications and exceptions to aspects of the reporting requirement—though some changes may not go as far as some had hoped. For more coverage on the Schedules K-2/K-3 development, see our prior story, “IRS updates partnership international tax reporting
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