On Feb. 24, the WICPA joined the AICPA and CPA societies across the nation to call for delaying the implementation of Schedules K-2 and K-3 to 2023.
In a letter sent to the IRS and Treasury, the AICPA, WICPA and 51 state societies called on the agencies “to delay implementation of the Schedules K-2 and K-3 to 2023 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.” Read the letter.
The WICPA is strongly supporting these efforts and is advocating on behalf of members to urge the 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 lead to confusion and unintended errors. Delaying also allows the IRS adequate time to complete the e-file system. The WICPA echoes the calls to suspend penalties for failing to file the schedules or failing to provide in a timely manner.
“While we certainly see the value in streamlining reporting tools and standardized international tax reporting, the WICPA recognizes that there are many concerns raised by CPAs regarding the recent revisions to filing instructions on Schedules K-2 and K-3,” said Tammy Hofstede, WICPA president and CEO. “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.”