Part V of Schedule K-2 (and Part V of Schedule K-3).

Used to provide information the shareholder needs to determine any inclusions under sections 951(a)(1) and 951A. Shareholders will use the information to complete Form 8992, U.S.

See the Instructions for Form 1120-S for instructions concerning amendments or adjustments to Schedules K-2 and K-3.

Computer-Generated Schedules K-2 and K-3 If a computer-generated Schedule K-2 or Schedule K-3 conforms to and doesn’t deviate from the official form and schedules, it may be filed with the IRS.

Important. Be sure to attach the approval letter to computer-generated Schedules K-2 and K-3. However, if the computer-generated form is identical to the IRS prescribed form, it does not need to go through the approval process, and an attachment is not necessary.

Every year, the IRS issues a revenue procedure to provide guidance for filers of computer-generated forms. In addition, every year, the IRS issues Pub. 1167, General Rules and Specifications for Substitute Forms and Schedules, which reprints the most recent applicable revenue procedure. Pub. 1167 is available at IRS.gov/Pub1167 . The procedures relevant to Form 1120-S and the Schedule K-1 (Form 1120-S) apply for purposes of the Schedules K-2 and K-3.

How To Complete Schedules K-2 and K-3

Reporting currency. Report all amounts in U.S. dollars except where specified otherwise.

Form references. These instructions refer to other forms. If the referenced form has been succeeded by another form, the references to those prior forms encompass any successor forms.

References in these instructions to Form 1040, U.S. Individual Income Tax Return, are intended, if applicable, to include Form 1040-SR, U.S. Tax Return for Seniors, as well as other tax returns for noncorporate shareholders such as Form 1041, U.S. Income Tax Return for Estates and Trusts.

Uses of the parts of Schedules K-2 and K-3, in general.