The IRS late on Tuesday issued the following statement by the National Public Liaison’s office as reported by Tax Notes Today:

The IRS intends to provide certain additional transition relief for this year from the Schedule K-2 and K-3 reporting for certain domestic partnerships and S corporations with no foreign activities, foreign partners, or shareholders, and without knowledge of partner or shareholder need for information on items of international relevance,” the agency said in a February 15 statement.

For 2021, these qualifying domestic partnerships and S corporations will not have to file the new schedules,” the statement continued. “We are taking this step in response to feedback we received from the tax community and our stakeholders. The IRS will provide full details of this relief soon.[1}

Obviously details will matter and the statement seems to imply full compliance will be required for 2022 returns.

We will be waiting for the official announcement of the relief in question and look to write that up once it is released.

[1] Kristin Parillo, “IRS Announces Filing Relief for Schedules K-2 and K-3,” Tax Notes Today Federal, February 16, 2022, https://www.taxnotes.com/tax-notes-today-federal/information-reporting/irs-announces-filing-relief-schedules-k-2-and-k-3/2022/02/16/7d6cv (Subscription required, retrieved February 15, 2022)