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There is an exception to the requirement for domestic partnerships to complete and file Schedules K-2 and K-3 with the IRS for tax years beginning in 2022. The exception, known as the "domestic filing exception," applies if all of the following criteria are met: 1) the partnership has no or limited foreign activity 2) all direct partners in the domestic partnership are US citizens, resident aliens, domestic decedent's estates, domestic grantor trusts, or domestic non-grantor trusts 3) partners receive notification from the partnership by mail or electronically no later than two months before the due date for filing the partnership's tax return stating that they will not receive Schedule K-3 unless they request it 4) the partnership does not receive a request from any partner for Schedule K-3 information on or before the "1-month date," which is one month before the due date for the partnership's tax return. If a partnership meets all of these criteria, it is not required to file Schedules K-2 and K-3 or furnish Schedule K-3 to partners, unless a partner requests it after the 1-month date. If a partnership receives a request for Schedule K-3 after the 1-month date but has not received any requests before that date, the domestic filing exception is still met and the partnership is not required to file or furnish the schedules. Contact us today for tax help!