• US S Corporation with 2 US Individual 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 . The foreign income and tax is reported on Form 1099 to the S Corporation .
S Corporation notifies shareholders on January 10 , 2023 they will not receive Schedule K-3 unless requested
S Corporation files return on August 31 , 2023 Shareholder A requests K-3 on February 1 , 2023 Shareholder B requests K-3 on February 20 , 2023
S Corporation is required to file relevant parts of K-2 and K-3 with the IRS for Shareholder A . Only needs to provide the K-3 information for Shareholder B to the shareholder on August 31 , 2023 .