Expanded domestic filing exception. The IRS is expanding criterion 2 of the existing domestic filing exception beginning with tax year 2024. Partnerships with direct partners who also meet criterion 2 are now included. Additionally, partners can request to receive Schedule K-3 automatically on an annual basis.
New small partnership Schedule K-2 and Schedule K-3 filing exception. Beginning for tax year 2024, partnerships with total receipts for the tax year of less than $250,000 and total assets at the end of the tax year of less than $250,000 are no longer required to file Schedules K-2 and K-3. This would be any partnership that answered ※Yes§ to Question 4 on Schedule B of Form 1065.
See Tax information for partnerships for more information.