Exemption from Filing Schedule K-2 and K-3?

Partnerships and S corporations with foreign business activities usually have to file Schedule K-2 or K-3. Domestic partnerships with no or limited foreign activity (not more than $300 of foreign income taxes) are exempt. Small partnerships—those having total gross receipts under $250,000 and total assets under $1 million—are also exempt. Small S corporations—those having total gross receipts under $250,000 and total assets under $250,000—are exempt too. Note: Calendar year partnerships and S corporations on extension for filing their 2024 returns can use the small entity exception. #IdeaoftheDay

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