Signature Tax Event 2022 Deck FINAL | Page 76

Who Needs to File – 2021 Tax Year

• Original understanding was that these forms would only apply to flow-through entities with items of international tax relevance .

• IRS estimated it would affect less than 5 % of taxpayers . This was grossly understated .

• In reality , assume that all flow through entities will NEED to file these schedules for 2021 unless all of the following items are true :

No foreign partners No foreign source income No assets generating foreign source income No foreign taxed paid of accrued No partner that files Form 1116 / Form 1118 No partner requesting the information No foreign information was provided in 2020