• 2022 K-2 instructions show a domestic filing exception to these forms if EACH of the following criteria is met :
1 . No or limited foreign activity . Limited Activity is defined as : Passive category foreign income No more than $ 300 of foreign income taxes allowed as a credit Foreign income and taxes are on a statement furnished to the partnership
2 . During the tax year , all direct partners are one of the following : Individuals that are US citizens Individuals that are US resident aliens Domestic decedent ' s estates with solely US citizen and / or resident alien individual beneficiaries Domestic grantor trusts with solely US citizen and / or resident alien individual grantors and beneficiaries Domestic non-grantor trusts with solely US citizen and / or resident alien individual beneficiaries
3 . If a partnership meets the criteria of 1 and 2 , the partnership must notify partners either by mail or electronically within 2 months of the due date of the tax return ( WITHOUT extension ) that the partners will NOT receive K-3 from the partnership unless the partners request the schedule .
Calendar year partnerships would notify by January 15 , 2023 for 2022 tax year