I just saw the following posted on the Better Investing
Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2
dated
1/31/2022 on their draft forms web page. The new
instructions will
require ALL clubs to include a schedule K-2 and K-3s for
each member
with their form 1065, even if the club had no foreign
income.
ICLUBcentral is making the needed changes to the Federal tax
printer so
these schedules will be included for all clubs. Please
consider waiting
until these changes are implemented to generate your club
Federal tax
return. These schedules are LONG and will add about 220
pages to the
return of a club with 10 members. E-filing becomes an even
better option
now.
Laurie Frederiksen on
Yes. So far it is true.
The IRS has continued to make changes in instructions for these forms. We are adapting the program as new instructions are released.
The only thing that isn't true about what IClub said is that it will add 22 pages per member. It will add more pages but not 22.
Laurie Frederiksen Invest with your friends! www.bivio.com
I just saw the following posted on the Better Investing
Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2
dated
1/31/2022 on their draft forms web page. The new
instructions will
require ALL clubs to include a schedule K-2 and K-3s for
each member
with their form 1065, even if the club had no foreign
income.
ICLUBcentral is making the needed changes to the Federal tax
printer so
these schedules will be included for all clubs. Please
consider waiting
until these changes are implemented to generate your club
Federal tax
return. These schedules are LONG and will add about 220
pages to the
return of a club with 10 members. E-filing becomes an even
better option
now.
Susanne Spitale on
Len thanks for getting this out !
On Wednesday, February 9, 2022, 02:28:50 PM EST, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote:
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
Charles Bard on
Perhaps it's time we contact our representatives in Congress and describe our displeasure with this proposal.
Charles Bard
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Laurie Frederiksen Sent: Wednesday, February 9, 2022 2:37 PM To: The Club Cafe <club_cafe@bivio.com> Subject: Re: [club_cafe] Schedules K-2 and K-3
Yes. So far it is true.
The IRS has continued to make changes in instructions for these forms. We are adapting the program as new instructions are released.
The only thing that isn't true about what IClub said is that it will add 22 pages per member. It will add more pages but not 22.
Laurie Frederiksen Invest with your friends! www.bivio.com
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
Laurie Frederiksen on
That's probably a good idea.
It's not a proposal, it's the current regulations. Like many IRS regulations, there are no thresholds below which reporting would be unnecessary.
Most of us are probably tiny fish being caught in a gigantic net, but we have to follow the rules that are out for partnership returns.
Laurie Frederiksen Invest with your friends! www.bivio.com
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
I just saw the following posted on the Better Investing
Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2
dated
1/31/2022 on their draft forms web page. The new
instructions will
require ALL clubs to include a schedule K-2 and K-3s for
each member
with their form 1065, even if the club had no foreign
income.
ICLUBcentral is making the needed changes to the Federal tax
printer so
these schedules will be included for all clubs. Please
consider waiting
until these changes are implemented to generate your club
Federal tax
return. These schedules are LONG and will add about 220
pages to the
return of a club with 10 members. E-filing becomes an even
better option
now.
ira smilovitz on
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing
Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2
dated
1/31/2022 on their draft forms web page. The new
instructions will
require ALL clubs to include a schedule K-2 and K-3s for
each member
with their form 1065, even if the club had no foreign
income.
ICLUBcentral is making the needed changes to the Federal tax
printer so
these schedules will be included for all clubs. Please
consider waiting
until these changes are implemented to generate your club
Federal tax
return. These schedules are LONG and will add about 220
pages to the
return of a club with 10 members. E-filing becomes an even
better option
now.
cecelia vanderlip on
Definitely a good idea to write your representatives.
Cecelia
On Feb 9, 2022, at 2:24 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing
Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2
dated
1/31/2022 on their draft forms web page. The new
instructions will
require ALL clubs to include a schedule K-2 and K-3s for
each member
with their form 1065, even if the club had no foreign
income.
ICLUBcentral is making the needed changes to the Federal tax
printer so
these schedules will be included for all clubs. Please
consider waiting
until these changes are implemented to generate your club
Federal tax
return. These schedules are LONG and will add about 220
pages to the
return of a club with 10 members. E-filing becomes an even
better option
now.
jeri1717 on
Per IRS instructions for K-2 form: The partnership need not complete this schedule if the partnership does not have items of international tax relevance (typically, international activities or foreign partners). The entire K-2 form is 19 pages long.
Jeri Morgan, Assistant treasurer
Mutual Investment Group of Cheney (WA)
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of cecelia vanderlip via bivio.com Sent: Wednesday, February 9, 2022 5:26 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] Schedules K-2 and K-3
Definitely a good idea to write your representatives.
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
ira smilovitz on
Jeff,
You haven't seen the revised instructions released on Jan 18. They state that partnerships, even those with no foreign activity, must provide the information unless they know for certain that their partners have no other foreign activity that would require an 1116. Penalties for failure to file are the same as those for errors/omissions on Schedule K-1 - $280 per K-2, increased to the greater of $570 or 10% of the items to be reported per K-2 in the case of intentional disregard.
Per IRS instructions for K-2 form: The partnership need not complete this schedule if the partnership does not have items of international tax relevance (typically, international activities or foreign partners). The entire K-2 form is 19 pages long.
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
jeri1717 on
Ira,
Good clarification. The instructions are dated Sept. 2021; the form is dated Feb. 2022. Best course is to provide the detail.
Jeri
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of ira smilovitz via bivio.com Sent: Wednesday, February 9, 2022 7:56 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] Schedules K-2 and K-3
Jeff,
You haven't seen the revised instructions released on Jan 18. They state that partnerships, even those with no foreign activity, must provide the information unless they know for certain that their partners have no other foreign activity that would require an 1116. Penalties for failure to file are the same as those for errors/omissions on Schedule K-1 - $280 per K-2, increased to the greater of $570 or 10% of the items to be reported per K-2 in the case of intentional disregard.
Per IRS instructions for K-2 form: The partnership need not complete this schedule if the partnership does not have items of international tax relevance (typically, international activities or foreign partners). The entire K-2 form is 19 pages long.
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
Norman Gee on
Would the recommendation be to sell any ADRs this year to avoid these forms for next year? Too late to do anything about this for 2021 tax return.
You haven't seen the revised instructions released on Jan 18. They state that partnerships, even those with no foreign activity, must provide the information unless they know for certain that their partners have no other foreign activity that would require an 1116. Penalties for failure to file are the same as those for errors/omissions on Schedule K-1 - $280 per K-2, increased to the greater of $570 or 10% of the items to be reported per K-2 in the case of intentional disregard.
Per IRS instructions for K-2 form: The partnership need not complete this schedule if the partnership does not have items of international tax relevance (typically, international activities or foreign partners). The entire K-2 form is 19 pages long.
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
Laurie Frederiksen on
As current IRS instructions stand, you are not going to avoid these forms whether or not you have foreign investments, so that, in itself, would not be a reason to sell them.
However, foreign investments can have the potential to bring other problematic tax reporting and accounting issues for clubs. We've seen many times where such stocks have gone through reorganizations or special distributions and have not provided good guidance on the US tax implications of those things. This has led to delays in providing clubs the information they need to get their records correctly updated.
In addition, if your club owns any ETF's with exposure to foreign companies, you may have more difficulties getting the information you need to report that income on your club taxes with the new forms.
Laurie Frederiksen Invest with your friends! www.bivio.com
You haven't seen the revised instructions released on Jan 18. They state that partnerships, even those with no foreign activity, must provide the information unless they know for certain that their partners have no other foreign activity that would require an 1116. Penalties for failure to file are the same as those for errors/omissions on Schedule K-1 - $280 per K-2, increased to the greater of $570 or 10% of the items to be reported per K-2 in the case of intentional disregard.
Per IRS instructions for K-2 form: The partnership need not complete this schedule if the partnership does not have items of international tax relevance (typically, international activities or foreign partners). The entire K-2 form is 19 pages long.
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
Peter Dunkelberger on
Don't the brokerages have some degree of responsibility to accurately report those income
items to the clubs and the IRS through the 1099s?
Peter Dunkelberger
Sumner Stock Selectors Investment Club
On Thu, Feb 10, 2022 at 8:54 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
As current IRS instructions stand, you are not going to avoid these forms whether or not you have foreign investments, so that, in itself, would not be a reason to sell them.
However, foreign investments can have the potential to bring other problematic tax reporting and accounting issues for clubs. We've seen many times where such stocks have gone through reorganizations or special distributions and have not provided good guidance on the US tax implications of those things. This has led to delays in providing clubs the information they need to get their records correctly updated.
In addition, if your club owns any ETF's with exposure to foreign companies, you may have more difficulties getting the information you need to report that income on your club taxes with the new forms.
Laurie Frederiksen Invest with your friends! www.bivio.com
You haven't seen the revised instructions released on Jan 18. They state that partnerships, even those with no foreign activity, must provide the information unless they know for certain that their partners have no other foreign activity that would require an 1116. Penalties for failure to file are the same as those for errors/omissions on Schedule K-1 - $280 per K-2, increased to the greater of $570 or 10% of the items to be reported per K-2 in the case of intentional disregard.
Per IRS instructions for K-2 form: The partnership need not complete this schedule if the partnership does not have items of international tax relevance (typically, international activities or foreign partners). The entire K-2 form is 19 pages long.
The IRS is only doing what Congress directed them to do as part of the 2017 Tax Cuts and Jobs Act. Congress changed the way multinational entities calculate their US tax liability to reduce their ability to eliminate US taxes with excessive foreign tax credits and/or sheltering income offshore. We are just the tiny fish caught in the net.
By all means write to your Representatives in DC and complain. It can be effective. Just this week the IRS announced that it was suspending plans to move to a facial recognition identity verification process if you wanted access to your IRS records.
I just saw the following posted on the Better Investing Treasurer's discussion list. Is this true?
The IRS published new draft instructions for schedule K-2 dated 1/31/2022 on their draft forms web page. The new instructions will require ALL clubs to include a schedule K-2 and K-3s for each member with their form 1065, even if the club had no foreign income. ICLUBcentral is making the needed changes to the Federal tax printer so these schedules will be included for all clubs. Please consider waiting until these changes are implemented to generate your club Federal tax return. These schedules are LONG and will add about 220 pages to the return of a club with 10 members. E-filing becomes an even better option now.
Frank & Diane Wohletz on
Does a club with less than 10 members have to file these forms?
On 2/10/2022 8:15 AM, Peter
Dunkelberger via bivio.com wrote:
Don't the
brokerages have some degree of responsibility to accurately
report those income
items to the
clubs and the IRS through the 1099s?
Peter
Dunkelberger
Sumner Stock
Selectors Investment Club
On Thu, Feb 10, 2022 at 8:54
AM Laurie Frederiksen <laurie@bivio.biz>
wrote:
As
current IRS instructions stand, you
are not going to avoid these forms
whether or not you have foreign
investments, so that, in itself, would
not be a reason to sell them.
However,
foreign investments can have the
potential to bring other problematic
tax reporting and accounting issues
for clubs. We've seen many times
where such stocks have gone through
reorganizations or special
distributions and have not provided
good guidance on the US tax
implications of those things. This
has led to delays in providing clubs
the information they need to get their
records correctly updated.
In
addition, if your club owns any ETF's
with exposure to foreign companies,
you may have more difficulties getting
the information you need to report
that income on your club taxes with
the new forms.
Laurie
Frederiksen
Invest with your friends! www.bivio.com
You haven't seen
the revised instructions released on Jan
18. They state that partnerships, even
those with no foreign activity, must
provide the information unless they know
for certain that their partners have no
other foreign activity that would require
an 1116. Penalties for failure to file are
the same as those for errors/omissions on
Schedule K-1 - $280 per K-2, increased to
the greater of $570 or 10% of the items to
be reported per K-2 in the case of
intentional disregard.
Per IRS instructions
for K-2 form: The partnership need not
complete this schedule if the
partnership does not have items of
international tax relevance (typically,
international activities or foreign
partners). The entire K-2 form is 19
pages long.
The IRS
is only doing what Congress
directed them to do as part of
the 2017 Tax Cuts and Jobs
Act. Congress changed the way
multinational entities
calculate their US tax
liability to reduce their
ability to eliminate US taxes
with excessive foreign tax
credits and/or sheltering
income offshore. We are just
the tiny fish caught in the
net.
By all
means write to your
Representatives in DC and
complain. It can be effective.
Just this week the IRS
announced that it was
suspending plans to move to a
facial recognition identity
verification process if you
wanted access to your IRS
records.
I just
saw the following posted on
the Better Investing
Treasurer's discussion list.
Is this true?
The IRS published new draft
instructions for schedule
K-2
dated
1/31/2022 on their draft
forms web page. The new
instructions will
require ALL clubs to include
a schedule K-2 and K-3s for
each member
with their form 1065, even
if the club had no foreign
income.
ICLUBcentral is making the
needed changes to the
Federal tax
printer so
these schedules will be
included for all clubs.
Please
consider waiting
until these changes are
implemented to generate your
club
Federal tax
return. These schedules are
LONG and will add about 220
pages to the
return of a club with 10
members. E-filing becomes an
even
better option
now.