Form 1065 E-File Changes - No Longer Using "FOREIGNUS" for Nonresident Partners

Описание: Domestic partnerships must file an annual Form 1065 and include a Schedule K-1 for each partner, whether that partner is a U.S. or non-U.S. person. For nonresident partners that did not have an SSN, ITIN, or EIN, the partnership could use the placeholder "FOREIGNUS" on Schedule K-1 in lieu of entering a U.S. tax ID number (TIN). This was accepted for e-filing purposes.

Starting in the 2023 tax year, the IRS no longer allows "FOREIGNUS" as a placeholder for a nonresident partner who is otherwise not required to obtain a U.S. TIN. Instead, the IRS wants partnerships to use "000-00-0000" for nonresident individuals or "00-0000000" for foreign companies or foreign trusts.

In their updated FAQ, the IRS confirms that this change to the XML schema should not be interpreted as now requiring nonresident partners who were not previously required to obtain a U.S. TIN are now required to do so.

Link to the IRS Partnership FAQs for This Update:
https://www.irs.gov/businesses/partne...

For a larger database of tutorials, please visit our website and search for your question:
https://knottlearning.com/

DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

#Form1065 #ScheduleK1 #PartnershipTax