Schedules K-2 and K-3 Electronic Filing Launch Postponed for S Corporations

April 28, 2022

The IRS has changed the launch date of its electronic filing protocol for Schedules K-2, Shareholders' Pro Rata Share Items — International, and K-3, Shareholder's Share of Income, Deductions, Credits, etc. — International, from mid-June 2022 to July 24, 2022.

In an update to the frequently asked questions (FAQs) on the IRS website, the agency stated that the versions of the schedules that are filed with Form 1120-S, U.S. Income Tax Return for an S Corporation, will be able to be e-filed on its Modernized e-File (MeF) platform via Extensible Markup Language (XML) on July 24.

The schedules, which are new for the 2021 tax year, are required to be filed by passthrough entities with "items of international tax relevance" and taxpayers filing Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.

The FAQs made no change to the forecast that MeF/XML capability for filers of Form 8865 will become available in January 2023.

Affected taxpayers and entities may attach the completed 19- and 20-page schedules to their returns in PDF format for e-filing before the MeF/XML filing capability launch dates.