Partnership K-2 and K3 filing exception

[LauraJ0]

In the draft instructions for 2022 filing, if the partnerships meet the first two criteria of the "Domestic filing" exception (1. No or limited foreign activity and 2. U.S. Citizen/resident alien partners), a notification must be sent to all partners, dated no later than two months before the due date without extension for filing the partnership's 2022 Form 1065, which means the letter must be sent (by mail or electronically) by Jan. 15, 2023. Will Lacerte generate this letter and assist in sending it electronically? If not, where can I find the exact information that needs to be in the letter?

[sjrcpa]

I assume Lacerte will not do this.

As of now, there is no guidance other than what is in the draft instructions.

[rbynaker]

I'm (happily) out of the 1065 business but a preparer on another list mentioned that he's going to take the opportunity to solicit change of address/email address info from clients' partners in the same communication as this.  No idea how he plans to generate the letters, I assume with some sort of mail merge outside of tax software.

Seems like an opportunity for billable hours at the end of December/beginning of January.  (Holidays?  What are those?)

[Xenon]

The draft instructions have since been revised to allow for notification with the K-1 at a later date. We still have time for Lacerte to implement it in an update to the software. Please see my post and give it a vote if you agree.

[rbynaker]

Traditionally Intuit doesn't do things until the final instructions are released.  Based on the updated 12/2/22 draft instructions it sounds like all we need is a note attached to the K-1 that there will be no K-3.  Should be easy for Lacerte (and every other software provider) to do.