Part IV. Used in combination with other information known

Instruction 1120-S (Schedule K-3) — Shareholder's Instructions for Schedule K-3 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc. - International · 2026-10-03 edition · updated 2026-10-04 · United States

to you, such as information reported on Schedule P (Form 5471), Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations, to determine your share of distributions by foreign corporations to the S corporation that are attributable to previously taxed earnings and profits (PTEP) in your annual PTEP accounts with respect to the foreign corporations (which are excluded from your gross income) or non-previously taxed earnings and profits (E&P), and the amount of foreign currency gain or loss on the PTEP that you are required to recognize under section 986(c). Use the information to figure and report the dividends and foreign currency gain or loss on Form 1040.

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▸Contents — Instruction 1120-S (Schedule K-3) — Shareholder's Instructions for Schedule K-3 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc. - International

Instruction 1120-S (Schedule K-3) — Shareholder's Instructions for Schedule K-3 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc. - International

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