K-2/K-3 Guidance Not Quite As Good
Last week we had written that for most farm partnerships that they would not be required to file form K-2/K-3 for this tax year. However, if your farm partnership contains a partnership or a corporation, it appears that you are still required to file these forms.
There is a chance that the IRS will update the instructions to indicate otherwise, but we would not count on it. So for now, only partnerships containing individuals or other entities that are ignored and the owners is an individual such as a revocable trust will not have to file K-2/K-3 if they meet the other requirements.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
Comments are closed.