Do not agree with K-1 issued by LLC partnership of 4 members
I have searched high and low, but cannot find what needs to be done if I do not agree with the K-1 issued by my partner. We have (or had) a 4-member LLC partnership from which 3 of us withdrew our interest. The remaining partner (or now a sole proprietor) has prepared the 1065 return by himself, without proper records or book-keeping.==>well in reality, in my experiences, I know that there are tons of LLC members preparing returns without proper records/bookkeeping even without accurate info on fin stmt,i.e, b/s , i/s or etc.The reason? Poor practical acctng knowledge.
He has issued K-1 which the rest of us do not agree to.IRS instructions state that I cannot file form 8082 since the partnership has fewer than 10 partners. What else can I do then ? I need to file my return !! =====>>as you can see, accurate info on your sch k1 of 1065 is really critical; you use the data on the form to fill out portions of your 1040. He, aslongas agrees, may refile 1065(whether 1065 is already efiled with the irs or not) and reissues sch k1s as agreed and each of partners can reflect each sch k1 to his 1040.
Can I enter $0 as the K-1 income ? Please advice as this is time critical!==>>>>>>no; accurate filing of the forms is important because the IRS continues to match income from Schs K-1 to other tax returns.once the form 1065 has been already filed with the IRS then you need to amend your 1065 for accurate sch K1s for the partners as incorrect information was provided to partners. A partnership must amend and re-file the return if it discovers an error on the original 1065.You may Identify “amended” information by checking the appropriate box on the K-1. Amending form 1065 depends on how it was originally filed.
If the return was originally e-filed, you make the changes to the return, x the amended box on page 1 and e-file. If the original return was filed by mail, there is a form 1065x to complete. i guess your situation is not just for amending only sch k1s.