Summary of changes:
Elimination of the January 15 notice requirement
The recent revisions to the exception now allow the partnership or S-corporation to give notice to partners/shareholders at any time – “as long as it’s not later than the date the qualifying entity furnishes the Schedule K-1 to the partner/shareholder.”
K-2 and K-3 Filing Timeline change
IRS also changed the timeline for partners/shareholders to notify the pass-through entities of their need for information reported on Schedules K-2 and K-3.This guidance is still a moving target within IRS, and therefore we expect additional guidance to be released over the coming months. The good news for filers is that the urgency caused by the original January 15 filing date has been removed. Pinion advisors will continue monitoring this issue and provide updates around new requirements and their impacts on both the entities and their owners for the coming filing season. Reach out to a Pinion advisor with questions about new IRS Schedule K-2 or K-3 regulations, or for guidance around notifications and filing.