The problems concern new IRS Schedules K-2 and K-3, which are intended to provide an extension of some of the information that used to be included on the existing Schedule K-1. The IRS “knows these changes can cause short-term challenges” and indicated last year that it would provide relief from penalties if there are problems in adopting the changes, Friedland said. The agency plans to issue FAQs to address questions that arise. Friedland, an IRS spokesman, said the new requirements are designed to improve the reporting of partnerships’ foreign income “in a way that will be more useful for partners and flow-through investors.” The IRS has sought stakeholder feedback since it first proposed the changes in 2020 and is continuing to do so, he said. “They’ve got to push this a year and they’ve got to change the rules,” Sylvester said.īruce I. He hopes the IRS will back down and at least delay the new requirements. It’s really sad,” said Mike Sylvester, a CPA with SBS CPA Group in Fort Wayne, Indiana.
SIGN UP for The Exchange, our free weekly tax newsletter. “It makes absolutely, positively zero sense, but here we are.” “It’s dumb, is the simplest way I can put it,” said Adam Markowitz, vice president of Howard L. They add up to a huge headache and burden on tax return preparers that they wish the IRS would take steps to alleviate, the practitioners said.
The new rules require partnerships to classify their foreign income in a wide variety of ways, by type and source. The practitioners also note that the new disclosures can’t yet be filed electronically-that option won’t be available until at least next month. Practitioners have a long list of complaints, from the vastly increased amount of detail the Internal Revenue Service is demanding to the fact that many partnerships will be forced to make the newly required disclosures even if they don’t have any foreign income-something the IRS made clear just a few weeks ago. Our tax savvy business support team is readily available by phone or e-mail for your convenience and support if needed.New IRS foreign income reporting requirements for partnerships are fueling anger among tax practitioners, who say the agency is saddling them with far too much work to do and limiting their ability to do it. Our EIN form is simplified for your ease of use, accuracy, and understanding, saving you time! We guarantee you will receive your EIN within 1-2 business days, but manyĪpplications are processed and EINs are delivered to you same day, within hours. The IRS does not supply Tax ID Numbers via e-mail. After the EIN is obtained and sent, we include specific next step instructions and a comprehensive partner business services. We are an Authorized e-File Provider for the IRS to process EIN applications on behalf of new businesses. Why choose ? We are a business-to-business (B2B) filing service to help new businesses get started by streamlining setting up. We cannot provide any kind of advice, explanation, opinion or recommendation about legal issues, and our communications are not protected by the attorney-client privilege or as work product. We are not a law firm or a substitute forĪn attorney or law firm. Govt Assist, LLC does not review the information submitted on your EIN Application.
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