June 30, 2021
IRS publishes Schedule K-2 and K-3 draft instructions for passthrough entities reporting international tax items
The IRS has announced (IR-2021-140) the release of early draft instructions for Schedules K-2 and K-3 for tax year 2021 Forms 1065, 1120-S and 8865. New Schedules K-2 and K-3 were released in early June 2021. The revised forms and instructions provide information for partnerships, S corporations and US persons required to file Form 8865 for controlled foreign partnerships, but do not affect partnerships and S corporations with no international tax items.