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:
WWW.LEARNINGMARKET.ORG.
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.
Price: $29.00
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 Forum 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.irstaxforumonline.com.
NOTE: You have one calendar year from the date of purchase to complete the seminar.
Navigating a Seminar for Continuing Education Credit
Once you purchase a seminar, it will appear under the "In Progress" tab on your status page. Click on the seminar title to initiate navigation of fully self-directed learning individualized to your pace. Working at a computer at your convenience provides you the flexibility to start, pause, and stop the presentation. You can download and print the seminar's edited transcript as well as the Power Point slides. Captions may be turned off.
Start the seminar by clicking on chapter one. Once you complete a chapter, navigation will appear at the top of the screen and take you to the first review question, followed by the next chapter, etc. A review question follows each chapter. After you have completed the video and review questions, you must take and pass a final examination. All review and final examination questions are multiple choice.
The seminar may be viewed repeatedly. However, the final examination can only be attempted two (2) times. You must achieve a passing rate of 70% to receive continuing education credit. A certificate of completion may be printed for each seminar successfully completed. Prior to printing the certificate of completion, there will be an opportunity to provide feedback on your learning experience.
You have one calendar year from the date of purchase to complete the seminar. Unexpired seminars that have not been completed will appear under the “In Progress” tab on your status page. Courses passed will appear under the “Completed and Passed” tab on your status page. Courses failed will appear under the “Failed” tab on your status page.
Prefer to audit this seminar? Clicking the “Audit” button will take you to chapter one of the seminar. You can download and print the seminar's edited transcript as well as the Power Point slides. Captions may be turned off. There are no review questions or final examination when auditing a seminar, and there is no credit for auditing a seminar. If you would like to audit this seminar (for no cost and no continuing education credit), click here.