The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
Just wanted to chime in with a thank you to the Bivio Team (Laurie, Ira, etc). I mailed 7004 extension request today. Form was simple and instructions and examples provided by Bvio were clear. I sent it Certified US Mail with an Electronic Receipt request (I doubt that the IRS will reliably sign and return a hard copy receipt request).
Thanks again to the Bivio team for answering all these questions -- many of them several times ð
Mike
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
Just wanted to chime in with a thank you to the Bivio Team (Laurie, Ira, etc). I mailed 7004 extension request today. Form was simple and instructions and examples provided by Bvio were clear. I sent it Certified US Mail with an Electronic Receipt request (I doubt that the IRS will reliably sign and return a hard copy receipt request).
Thanks again to the Bivio team for answering all these questions -- many of them several times 😉
Mike
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
iClub's tax printer was available on Jan 24th. They also support e-file for the club. Their slides say if you don't have foreign income you don't need the K2/K3.
I think Bivio / Ira might have this wrong. Going to see if I can link my brokerage to iClub for last year. Looks like I could have my return done tomorrow with them.
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
We use iClub and because we own two foreign stocks, an iClub generated K-3 showed up for us. However, based on Turbo Tax advice, for 2021, and IRS advice 2-15-2022, each of us checking with our tax advisor, I am not checking 'yes' for having a K-3.
iClub's tax printer was available on Jan 24th. They also support e-file for the club. Their slides say if you don't have foreign income you don't need the K2/K3.
I think Bivio / Ira might have this wrong. Going to see if I can link my brokerage to iClub for last year. Looks like I could have my return done tomorrow with them.
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
ICLUB's presentation was made before the last two changes in IRS rules on Schedules K-2 and K-3, and their software was released before the changes. Those clubs that filed early using ICLUB software and did not file with Schedules K-2/K-3 are potentially subject to penalties of $280 per missing K-3. I know they (ICLUB) are aware of the issue, but don't know (or desire to know) how they are addressing it.
iClub's tax printer was available on Jan 24th. They also support e-file for the club. Their slides say if you don't have foreign income you don't need the K2/K3.
I think Bivio / Ira might have this wrong. Going to see if I can link my brokerage to iClub for last year. Looks like I could have my return done tomorrow with them.
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
Looks like for Gail iClub printed a K-3. I don't want to switch but you guys are giving us no guidance besides file and extension and wait with no idea on a date when we will be able generate forms.
Ira if I paid you directly could you generate and file a return for my club with the reports from Bivio? We just need to get this done. I do know that everyone in our club does not have foreign investments. I'm the only one with a brokerage account, no other partners have one, this is their first time investing. I have no foreign investments myself.
ICLUB's presentation was made before the last two changes in IRS rules on Schedules K-2 and K-3, and their software was released before the changes. Those clubs that filed early using ICLUB software and did not file with Schedules K-2/K-3 are potentially subject to penalties of $280 per missing K-3. I know they (ICLUB) are aware of the issue, but don't know (or desire to know) how they are addressing it.
iClub's tax printer was available on Jan 24th. They also support e-file for the club. Their slides say if you don't have foreign income you don't need the K2/K3.
I think Bivio / Ira might have this wrong. Going to see if I can link my brokerage to iClub for last year. Looks like I could have my return done tomorrow with them.
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
Can anyone address the situation with a club that owns an ADR (American Depository Receipt) of a Chinese company, for example Alibaba or Netease. Is that foreign source income?
No I can't. The standard reports generated by bivio don't report the detail that is needed to complete K-2/K-3. It can be done with major manipulation within a spreadsheet, but it isn't something that I can undertake at a reasonable price point.
Looks like for Gail iClub printed a K-3. I don't want to switch but you guys are giving us no guidance besides file and extension and wait with no idea on a date when we will be able generate forms.
Ira if I paid you directly could you generate and file a return for my club with the reports from Bivio? We just need to get this done. I do know that everyone in our club does not have foreign investments. I'm the only one with a brokerage account, no other partners have one, this is their first time investing. I have no foreign investments myself.
ICLUB's presentation was made before the last two changes in IRS rules on Schedules K-2 and K-3, and their software was released before the changes. Those clubs that filed early using ICLUB software and did not file with Schedules K-2/K-3 are potentially subject to penalties of $280 per missing K-3. I know they (ICLUB) are aware of the issue, but don't know (or desire to know) how they are addressing it.
iClub's tax printer was available on Jan 24th. They also support e-file for the club. Their slides say if you don't have foreign income you don't need the K2/K3.
I think Bivio / Ira might have this wrong. Going to see if I can link my brokerage to iClub for last year. Looks like I could have my return done tomorrow with them.
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
On Monday, February 28, 2022, 07:26:33 PM EST, Gail Brilling via bivio.com <user*37481200001@bivio.com> wrote:
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions:
Can anyone address the situation with a club that owns an ADR (American Depository Receipt) of a Chinese company, for example Alibaba or Netease. Is that foreign source income?
No I can't. The standard reports generated by bivio don't report the detail that is needed to complete K-2/K-3. It can be done with major manipulation within a spreadsheet, but it isn't something that I can undertake at a reasonable price point.
Looks like for Gail iClub printed a K-3. I don't want to switch but you guys are giving us no guidance besides file and extension and wait with no idea on a date when we will be able generate forms.
Ira if I paid you directly could you generate and file a return for my club with the reports from Bivio? We just need to get this done. I do know that everyone in our club does not have foreign investments. I'm the only one with a brokerage account, no other partners have one, this is their first time investing. I have no foreign investments myself.
ICLUB's presentation was made before the last two changes in IRS rules on Schedules K-2 and K-3, and their software was released before the changes. Those clubs that filed early using ICLUB software and did not file with Schedules K-2/K-3 are potentially subject to penalties of $280 per missing K-3. I know they (ICLUB) are aware of the issue, but don't know (or desire to know) how they are addressing it.
iClub's tax printer was available on Jan 24th. They also support e-file for the club. Their slides say if you don't have foreign income you don't need the K2/K3.
I think Bivio / Ira might have this wrong. Going to see if I can link my brokerage to iClub for last year. Looks like I could have my return done tomorrow with them.
Interesting post on Turbo Tax as I'm trying to enter the K-1 etc
Most forms K-2 and K-3
forms do not need to be filed this year.
The IRS announced on Tuesday February
15, 2022 that most K2/K3 reporting for 2021 can be delayed until the 2022 tax
return filing.
This
is an extract of the IRS announcement:
The IRS intends to provide certain
additional transition relief for this year from the Schedule K-2 and K-3
reporting for certain domestic partnerships and S corporations with no foreign
activities, foreign partners or shareholders, and without knowledge of partner
or shareholder need for information on items of international relevance. For
2021, these qualifying domestic partnerships and S corporations will not have
to file the new schedules. We are taking this step in response to feedback we
received from the tax community and our stakeholders. The IRS will
provide full details of this relief soon.
So my k-1 has box
16 checked -- because my investment club generated a k-3 form. Should I tell
Turbo Tax that that box is not checked so I don't get an error during Smart
Check?
Yes, leave Box
16 unchecked since you are not required to report Schedule K-3 for the 2021 tax year. Be sure to retain
all info sent with Schedule K-1 in case you need it in the future.
On Mon, Feb 28, 2022 at 2:18 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
The issue is not only whether your club itself has any foreign investments, but also whether anyone in your club has any foreign reporting they need to do. The IRS says you need to file the forms unless you are certain they do not.
Since we do not feel that clubs may be in a position to effectively evaluate this, our current recommendation is that all clubs file the new tax forms.
The reason we are recommending you file for an extension is that it is easier to amend a return before your due date than after. An extension automatically extends your due date to September 15.
Since the IRS continues to change the instructions for the new forms. If you have extended your due date and it turns out they later come out with something that means you need to amend what you filed, it is a very simple process to amend them.
It is easy to file for an extension. Here are the instructions: