The answer is yes. As long as you know all of the partner’s information regarding their requirement to file Form 1116 you can skip the Schedule K2/K3 if it does not apply at their level.

The IRS announced on Tuesday February 15, 2022 that most K2/K3 reporting for 2021 can be delayed ... you are now not required to file these forms for 2021 tax returns. Under the original guidance ...