In late 2021, the IRS released new tax forms that should be added to the tax returns of pass-through entities to report certain international income, deductions and credits. The IRS’s goal with Part II of Schedules K-2 and K-3 was to provide more transparency to how pass-through entities calculate their U.S. income tax liability from relevant international items. However, when filing these forms electronically, companies were unable to report negative amounts. In a recently added FAQ, the IRS said relevant pass-through entities should enter zero on the line items in Schedules K-2 and K-3, Part II, Sec. 1 for which the form doesn’t permit negative values. Read the FAQ: https://bit.ly/3L7NqfG
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