Signature Tax Event 2022 Deck FINAL | Page 77

Examples – 2021 Tax Year

• US S Corporation with 2 US Shareholders

No foreign transactions in ordinary course of business
S Corporation has an investment account which holds foreign stock and receives $ 200 of foreign tax credit a year
US S Corporation is required to file K-2 and provide K-3 to all partners

• US Partnership with 3 US Partners

No foreign transactions No foreign assets 1 Partner files Form 1116 US Partnership is required to file K-2 and provide K-3 to partner who files Form 1116