Does United States Oil Fund LP qualify for the IRS waiver for filing the new schedule K-3?

Thanks for the detailed answer. I'm still confused though - what exactly counts as "foreign activity" for something like USO? They're trading oil futures on US exchanges, right? Does that still count as foreign even if the transactions happen domestically?

Foreign activity includes any transaction that has international elements, even if executed on US exchanges. For oil futures and commodity funds like USO, they're typically tracking global commodity markets and may have underlying assets or counterparties outside the US. The commodities themselves originate internationally, creating foreign-source income for tax purposes. Even if USO conducts trades on US exchanges, if the economic substance involves international elements (like foreign oil sources), the IRS considers this relevant for K-3 reporting. This is why most commodity ETFs and partnerships can't use the simplified filing exception - their business inherently involves international economic activity by nature of the global commodity markets.

How accurate was the information? I've had tax software give me wrong advice before and ended up with a nasty letter from the IRS. Does it actually understand the specifics of commodity ETPs like USO?

I'm skeptical about using third-party tools for something this specific. Did you verify their analysis with USO's investor relations department? I've found that going straight to the source is usually more reliable than any analysis tool.

The information was extremely accurate - it correctly identified which sections of my K-1 contained international income allocations that disqualified USO from the waiver. Their system is trained on thousands of actual K-1s from partnerships including commodity ETPs, so it definitely understood the USO structure specifically. I actually did verify with USO investor relations afterward, and they confirmed exactly what taxr.ai had identified - that they have reportable foreign transactions that require K-3 filing. The tool saved me from waiting weeks for a response from their often-overwhelmed investor relations department during tax season.

How does this service actually work? Like do they somehow jump the phone queue or are they just sitting on hold for you? I'm trying to reach USO's tax department myself now and keep hitting dead ends.

This sounds fishy. How could some random service get faster access to USO than calling them directly? Seems like they're just charging for something you could do yourself with enough persistence.

The service uses an automated system that navigates phone trees and waits on hold in your place. When a representative finally answers, their system calls your phone and connects you directly. They don't jump the queue or have special access - they're just handling the holding process so you don't have to waste hours with a phone to your ear. For complex entities like USO, where investor relations and tax departments are swamped during tax season, it's simply about persistence and being available when a representative finally picks up. I tried calling directly for weeks with no success, but with Claimyr I got through in a couple hours because their system was persistent and ready when a human finally answered.

Is there an easy way to tell from looking at my K-1 if the partnership has foreign activity? There are so many boxes and supplemental statements, I'm not sure what to look for.

Yes, there are several indicators on your K-1 that show foreign activity. Look for entries in Box 16 (Foreign Transactions) - any amounts there immediately disqualify the partnership from the waiver. Also check for statements about Foreign Tax Credit, PFIC income, or any international income allocations. For commodity funds like USO specifically, even if Box 16 is empty, supplemental statements often show foreign-source income from the underlying commodity transactions. Sometimes this appears in the "Additional Information" section rather than in the standard boxes. If you see any references to international markets, PFIC reporting, or foreign tax considerations, the partnership almost certainly doesn't qualify for the waiver.

You don't need to attach the K-3 to your personal return. It's an informational form that the partnership provides to give you details about your share of the partnership's international activities. You use the information to complete various parts of your personal return (like Form 1116 for foreign tax credits), but the K-3 itself isn't filed with your 1040.

Good questions! Regarding what to report from the K-3 - you need to report all applicable items that flow through to your personal return, but not everything on the K-3 will necessarily apply to you. The K-3 shows your proportionate share of the partnership's foreign activities, but some sections might be zero or not relevant to your specific tax situation. For timing, most partnerships including USO typically send K-3s along with the K-1s, which usually arrive by mid-March (partnerships have until March 15 to file and provide schedules to partners). I'd definitely wait until you receive all partnership documents before filing, especially since the K-3 information can affect multiple parts of your return like foreign tax credits or PFIC reporting. The key is to review each section of the K-3 and see if it requires corresponding entries on your 1040 or related forms. When in doubt, it's better to include the information rather than risk an IRS notice later asking why certain foreign items weren't reported.