The New Schedules K-2 and K-3 and Form 1116, Foreign Tax Credit and Reporting Items from Schedule K-3 on Form 1040-NR, U.S. Nonresident Alien Income Tax Return
Target Audience: CPAs, EAs, Annual Filing Season Program Participants
Field of Study: Taxes (NASBA); Federal Tax (IRS)
IMPORTANT INFORMATION REGARDING CONTINUING EDUCATION CREDIT: THE IRS ACCEPTS THIS SEMINAR FOR ONE (1) CONTINUING EDUCATION CREDIT FOR ENROLLED AGENTS (EA) AND ANNUAL FILING SEASON PROGRAM (AFSP) PARTICIPANTS. Others, PLEASE CONSULT WITH YOUR RESPECTIVE STATE LICENSING AGENCY REGARDING ACCEPTABILITY OF THIS CREDIT.
Note: the credit received from this seminar qualifies as continuing education that is required to obtain the voluntary AFSP – record of completion. However, this website does not offer the AFSP annual federal tax refresher (AFTR) course.
IRS COMMUNICATIONS AND LIAISON IS REGISTERED WITH THE NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY (NASBA) AS A SPONSOR OF CONTINUING PROFESSIONAL EDUCATION ON THE NATIONAL REGISTRY OF CPE SPONSORS. STATE BOARDS OF ACCOUNTANCY HAVE FINAL AUTHORITY ON THE ACCEPTANCE OF INDIVIDUAL COURSES FOR CPE CREDIT. COMPLAINTS REGARDING REGISTERED SPONSORS MAY BE SUBMITTED TO THE NATIONAL REGISTRY OF CPE SPONSORS THROUGH ITS WEBSITE:
DISCLAIMER: This Seminar was recorded on JULY 26, 2023, in Atlanta Georgia
Seminar/Program Level: Basic
Recommended Continuing Education Credit: 1
Beginning with the 2021 tax year, new Schedules K-2, Partners’ Distributive Share Items – International and Schedule K-3, Partner’s Share of Income, Deductions, Credits, etc. – International were created to provide consistency in reporting to partners and shareholders items of international tax relevance. This session will provide an overview of these schedules’ impact to Form 1116, Foreign Tax Credit. Generally, non-resident aliens (NRAs) engaged in a U.S. trade or business (USTB) during the year are required to file a Form 1040-NR, U.S. Nonresident Alien Income Tax Return for that year. An NRA that is a partner in a partnership, whether domestic or foreign, is engaged in a USTB if the partnership is engaged in a USTB. This session will review key components of Schedules K-2 and K-3 with focus on K-3 Part X, Foreign Partner’s Character and Source of Income and Deductions and how typical items on Schedules K-2 and/or K-3 may flow over to the Form 1040-NR. The presentation will discuss the need for an NRA to file a U.S. income tax return when receiving partnership items of income, deductions, credits, etc. from Schedule K-3. By the end of this seminar, you will be able to:
- Examine the new Schedules K-2 and K-3 and their purpose.
- Prepare Parts I, II and III of the Schedules K-2 and K-3.
- Cite the exception to filing the Schedules K-2 and K-3.
- Outline generally, how nonresident alien (NRA) individuals are taxed.
- Demonstrate where to report various types of partnership items of income, deductions, credits, etc. of an NRA partner on a Form 1040-NR.
No prerequisites or advanced preparation are required for this seminar.
Continuing education credit is available for this seminar. If you would like to earn credit for a seminar, you must have an account with the IRS Nationwide Tax Forums Online and purchase the seminar. You can purchase seminars one at a time or as a group. After completing the purchase through PayPal, you will be returned to your status page on www.irstaxforumsonline.com.
NOTE: You have one calendar year from the date of purchase to complete the seminar.
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Navigating a Seminar for Continuing Education Credit
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