Expanded domestic filing exception. The IRS is amending the domestic filing exception for criterion 3 to require shareholders to request a Schedule K-3 annually. ob极郤ever, if a shareholder requests the Schedule K-3, they may opt to receive it automatically in subsequent years without submitting a new request each year.
New small S corporation Schedule K-2 and Schedule K-3 filing exception. Beginning for tax year 2024, any S corporation that answered ※yes§ to Question 11 on Schedule B of Form 1120-S will not be required to file Schedules K-2 and K-3. S corporations will be subject to the same notification requirements for the domestic filing exception.
See Form 1120-S, Schedules K-2 and K-3 filing requirements for more information.