K-2/K-3 Reporting: Sourcing, 8865 Considerations, and Form 1116 Application
Schedules K-2 and K-3 were introduced to standardize international tax reporting, but for many practitioners, they created a new layer of complexity rather than clarity. The real challenge is not identifying that a K-2 or K-3 exists—it is understanding how to use the information correctly in return preparation.
This program focuses on the practical application of K-2 and K-3 reporting, with an emphasis on sourcing of income, foreign tax credit implications, and integration into Form 1116. Participants will learn how to identify the key data points within K-2/K-3 that impact individual and entity returns, and how to avoid common errors when translating this information into U.S. tax reporting.
The program also addresses the role of foreign partnerships and the interaction with Form 8865, including how ownership structures and reporting obligations affect the information presented on K-2 and K-3. Special attention is given to sourcing rules, limitation baskets, and the proper treatment of foreign taxes paid or accrued.
Emphasis is placed on practitioner decision-making and workflow: what to review, what to question, and how to efficiently use K-2/K-3 data to complete Form 1116 accurately. This program is designed for practitioners who are already encountering these schedules and need a clear, practical approach to applying the information in real-world scenarios.
Learning Objectives (NASBA)
Upon completion of this program, participants will be able to:
-Identify key information reported on Schedules K-2 and K-3 that is relevant to U.S. tax return preparation.
-Determine the sourcing of income and classification of foreign taxes using K-2/K-3 data.
-Apply K-2/K-3 information to the preparation of Form 1116, including foreign tax credit limitation considerations.
-Evaluate the impact of foreign partnerships and Form 8865 reporting on K-2/K-3 disclosures.
-Recognize common errors in interpreting K-2/K-3 and implement strategies to avoid misreporting.
Only available for TPP unlimited CE subscribers.
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*Self-Study recording not available for NASBA CPE credit.
IRS Program #: 7Q3WU-T-00885-26
CTEC Course #: 6248-CE-00231
Rita Ryan
,
Esq., LLM
Rita Ryan is the Founder of RRITS and a seasoned Tax Attorney with more than 18 years of experience advising clients on cross-border personal/business taxation, international investment structuring, multi-jurisdictional estate planning, and U.S. tax compliance obligations arising from global activities and holdings. She is widely regarded for her ability to navigate complex international tax regimes and translate evolving regulatory requirements into practical, strategic guidance.
In addition to her client-facing work, Rita serves as a trusted advisor to fellow tax professionals, providing specialized support in identifying international reporting obligations, advising on complex filings, and reviewing workpapers and forms to ensure technical accuracy in an increasingly dynamic international compliance environment.
Prior to founding RRITS, Rita served as Chief Financial Officer and Head of Private Client Services at M+, where she focused on integrated tax, business, and wealth preservation planning for high-net-worth business owners and their families. Earlier in her career, she founded and led Wolf & Co.’s International Tax Services Practice, advising both individuals and entities on the tax planning and compliance aspects of international ownership structures. Rita began her legal career in private practice as an Associate Attorney at Vacovec, Mayotte & Singer, LLP, concentrating on international and domestic taxation, estate planning, and tax controversy matters.
Rita is also an Adjunct Professor in the Graduate Tax Program at Boston University School of Law, where she co-founded and co-teaches the course Foreign Information Reporting and Withholding. In addition, she regularly teaches advanced international tax topics for Tax Practice Pros, LumiQ, and the National Association of Enrolled Agents, contributing to the education of practitioners nationwide.
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