The Georgia Society of CPAs Advocates for Businesses and Practitioners on Schedules K-2, K-3
Thursday, February 24, 2022, The Georgia Society of CPAs, along with the AICPA and 51 state CPA societies, sent a letter to Assistant Treasury Secretary Lily Batchelder and IRS Commissioner Charles Rettig regarding widespread concerns on the Schedules K-2 and K-3 reporting. The letter states:
“The AICPA and state CPA societies across the country call on the Treasury Department and the IRS to delay implementation of the Schedules K-2 and K-3 to 2023 (the 2022 tax year filing season) and to suspend any assessment of penalties against Partnerships or S Corporations for failing to file or failing to timely provide Schedules K-2 and K-3 for the 2021 tax year.”
The Georgia Society of CPAs strongly supports these efforts and advocates on behalf of members to urge IRS and Treasury to delay implementation of these changes to allow practitioners sufficient time to understand and implement these changes.
Mid-tax filing season updates to the Schedules leads to confusion and unintended errors. Delaying also allows the IRS adequate time to complete the e-File system to accept the new Schedules electronically. The Georgia Society of CPAs is also echoing calls to suspend penalties for failing to file, or failing to provide in a timely manner, Schedules K-2 and K-3 for the 2021 tax year.
“While we certainly see the value in streamlining reporting tools and standardized international tax reporting, The Georgia Society of CPAs recognizes that there are many concerns raised by CPAs regarding the recent revisions to filing instructions on Schedules K-2/K-3,” said Boyd Search, CEO, GSCPA. “The issues raised during this filing season due to the continual changes regarding filing obligations and the delayed e-File system necessitates a delay until 2023.”
Read the AICPA/State Society Letter to Assistant Treasury Secretary and IRS Commissioner >
Read the article explaining the K2/K3 filing issues and Filing Delay in Detail >