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Yes, Part VIII (Form 1065) and Part VII (Form 1120-S) of Schedules K-2 and K-3 are required to be completed for dormant foreign corporations. The instructions for these parts do not provide an exception for dormant foreign corporations. Therefore, even if a foreign corporation is dormant, the partnership or S corporation must still complete the relevant parts of Schedules K-2 and K-3 to report the necessary information. This includes reporting the foreign corporation's net income, foreign taxes, and other relevant details as specified in the instructions.
Sources:
Instructions for Form 1065 (2023)
Instructions for Form 1120-S (2023)
S Corporation Instructions for Schedules K-2 and K-3 (Form 1120-S) (2023)
Partnership Instructions for Schedules K-2 and K-3 (Form 1065) (2023)
Instructions for Schedules K-2 and K-3 (Form 8865) (2023)
Shareholder's Instructions for Schedule K-3 (Form 1120-S) (2022)
Partner’s Instructions for Schedule K-3 (Form 1065) (2023)