NJCPA Advocates for Businesses and Practitioners on Schedules K-2, K-3
Today, the American Institute of CPAs, New Jersey Society of CPAs and 51 other 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 NJCPA is strongly supporting these efforts and is advocating on behalf of members to urge the IRS and Treasury to delay implementation of these changes in order 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 in order to accept the new Schedules electronically. The NJCA 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 NJCPA recognizes that there are many concerns raised by CPAs regarding the recent revisions to filing instructions on Schedules K-2/K-3,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director of the NJCPA. “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.”