IRS issues a frequently asked question for pass-through entities to report negative amounts electronically to the IRS on Part II of Schedules K-2 and K-3
IR-2023-162, Sept. 5, 2023
WASHINGTON — The Internal Revenue Service today issued a frequently asked question in Fact Sheet 2023-20 to provide guidance to pass-through entities for electronically filing Schedules K-2 and K-3 to the IRS to report negative amounts.
For tax year 2022 the schema for Schedule K-2 and K-3 do not permit negative values. This FAQ provides guidance to pass-through entities about how to report these amounts.
More information about reliance is available.
IRS-FAQ
This news release can be found on the IRS website here.