Mastering Negative Amount Reporting: A Must-Know for Pass-Through Entities & the IRS

Internal Revenue Service (IRS)

The Internal Revenue Service recently 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.

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