Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 04-18-2011, 08:29 AM
Junior Member
 
Join Date: Apr 2011
Posts: 3
Missing K-1 from partnership

I did not receive a K-1 from the partnership I'm invested in - I've tried to contact them with no luck. How should I handle this situation with my tax return?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-18-2011, 09:16 AM
Moderator
 
Join Date: Oct 2010
Posts: 2,631
“I did not receive a K-1 from the partnership I'm invested in - I've tried to contact them with no luck. How should I handle this situation with my tax return?”---> You do not attach Form 1065 or Schedule K-1 to your personal tax return. You May still file your return without Form 1065 Sch K-1. However, you will have to amend your return to report the pass through items from K-1 when you get one. This may change your tax liability depending on the profit or loss from the K-1 for you.In order to avoid amending your return later, you need to wait for your Sch K-1 and file a complete and correct tax return; your Partnership keeps the record of Sch K-1 for you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-18-2011, 11:51 AM
Junior Member
 
Join Date: Apr 2011
Posts: 3
Missing K-1 from Partnership

Thank you. What if I don't expect to receive a K-1 - publication 541 (Partnerships) seems to lead me to file a form 4797 for an abandoned or worthless partnership interest?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 04-18-2011, 02:13 PM
Moderator
 
Join Date: Oct 2010
Posts: 2,631
I guess you need to keep trying to contact the partnership. As long as your partnership files partnership return with the IRS, your partnership MUST send the K-1s of partners of the partnership to the IRS; this is the Tax law. Sch K-1 is not filed with the personal return, but is sent to the IRS along with the appropriate business tax form (Form 1065 for a partnership) by the partnership.( In general, Partnerships will not issue Schedule K-1s until the Form 1065 is completed, so partners will need to wait to file their return if the partnership return is not finished. Note that the K-1 cannot be completed until the tax return for the partnership (on Form 1065) has been prepared.). However, you MAY have to identify "estimated" K-1 income. When the Schedule K-1 has not been received at the time the Form 1040 is filed, the income should be estimated and your return CAN never be accurate. So,Form 8082, Notice of Inconsistent Treatment or Amended Return, should be used to identify estimated K-1 income or when you, as a Sch K-1 recipient, disagree with the amounts reported on the K-1. Use Form 8082 to notify the IRS of any inconsistency between your tax treatment of an item and the way the pass-through entity treated and reported the same item on its return. Also use the form to notify the IRS if you did not receive Schedule K-1 by the due date for filing your return (including extensions).
I guess you need to contact local IRS office nearest you in your local area.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #5 (permalink)  
Old 04-18-2011, 02:50 PM
Junior Member
 
Join Date: Apr 2011
Posts: 3
Missing K-1 from Partnership

Thank you again for all your help.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #6 (permalink)  
Old 06-30-2011, 07:47 PM
Junior Member
 
Join Date: Jun 2011
Posts: 3
Similar Question regarding K-1

I've been a partner in a K-1 relationship and they've always filed/supplied the K-1's after April 15th. In the beginning I did amend my return, but there was never any impact to the current year taxes because it was always a loss in the business.

As a result, I stopped amending my personal returns for a net non-change for the current year.

Now the business finally turned a profit and in theory I would owe taxes on that, however the profit was less than all the previous year's losses. Will I still be able to reference those losses even though I didn't amend my individual returns on a yearly basis? The IRS clearly still has the information.

Thanks for any help!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #7 (permalink)  
Old 06-30-2011, 11:56 PM
Moderator
 
Join Date: Oct 2010
Posts: 2,631
" “Will I still be able to reference those losses even though I didn't amend my individual returns on a yearly basis? The IRS clearly still has the information.”---->I guess it depends; this is what TaxGuru stated before," According to the IRS Partnership Tax Code, a partner’s ability to deduct his or her share of partnership losses are subject to three sets of limitations, which are applied in the following order:

1. Under IRC section 704(d), the loss must not exceed the amount of the partner’s basis in the partnership interest;

2. The loss is subject to the at-risk rules of IRC section 465;

3. The loss is subject to the passive activity rules of IRC section 469.

Furthermore, the tax code specifically states that "the Partners share of partnership Losses that do not meet the requirements for any of the three limitations are suspended at that level."

This means that Tax Regulations provides a carryover of any disallowed loss to the subsequent tax year."



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #8 (permalink)  
Old 07-01-2011, 09:23 AM
Junior Member
 
Join Date: Jun 2011
Posts: 3
K-1 Loss Carryover

Thanks so much for the quick response Wnhough.

As my partnership in the K-1 was the result of employment, my "at-risk" calculation was set to be zero based on the structure of my contract (no monetary value was established for the my percentages).

So in effect, I believe you have answered my question as the losses were never applied to my former returns and should be carried over. If my loose assumption that the corporation's filing of the K-1 information is enough for me to refer to it for my historical losses, then I should be in the clear.

My plan is to provide copies of the historical K-1's as part of my return as handy reference for my return. Or is that not a good idea?

Thanks again!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #9 (permalink)  
Old 07-01-2011, 05:24 PM
Moderator
 
Join Date: Oct 2010
Posts: 2,631
“As my partnership in the K-1 was the result of employment, my "at-risk" calculation was set to be zero based on the structure of my contract (no monetary value was established for the my percentages). “--->A partner is not an employee of the partnership. The partner's distributive share of ordinary income/(loss)from a partnership is generally included in figuring net earnings(loss) from self-employment. However, a limited partner generally does not include his or her distributive share of income or loss in computing net earnings from self-employment. This exclusion does not apply to guaranteed payments made to a limited partner for services actually rendered to or on behalf of a partnership engaged in a trade or business. The ability of a partner who does not materially participate in the partnership's trade or business activity is limited in deducting partnership losses to (1) the partner's basis , (2) the partner's at-risk basis and (3) the passive income the partner reports that tax year
“So in effect, I believe you have answered my question as the losses were never applied to my former returns and should be carried over.”---> There are potential limitations on partnership losses that you can deduct on your return. Generally, you may not claim your share of a partnership loss (including a capital loss) to the extent that it is greater than the adjusted basis of your partnership interest at the end of the partnership's tax year. Any losses and deductions not allowed that year because of the basis limit can be carried forward indefinitely and deducted in a later year subject to the basis limit for that year.Your, as a partner, income or loss from the partnership is the your distributive share of the partnership items for the partnership's tax year that ends with or within the partner's tax year. These items are reported to you on your Schedule K-1 (Form 1065).
“ If my loose assumption that the corporation's filing of the K-1 information is enough for me to refer to it for my historical losses, then I should be in the clear.“My plan is to provide copies of the historical K-1's as part of my return as handy reference for my return. Or is that not a good idea?”---->I guess it depends; I am NOT sure quite well on your situation.However, for example, the Internal Revenue Code limits the amount a partner can deduct for passive activity losses and credits as said above. The passive activity limits do not apply to the partnership. Instead, they apply to each partner's share of income/ loss, or credit from passive activities. Because the treatment of each partner's share of partnership income/ loss, or credit depends on the nature of the activity that generated it as said above.i.e, adjusted basis rule or etc., the partnership must report income/ loss, and credits separately for each activity.Generally, passive activities include a trade or business activity in which the partner does not materially participate. The level of each partner's participation must be determined by the partner. The partnership is not responsible for keeping the information needed to figure the basis of your partnership interest. Although the partnership does provide an analysis of the changes to your capital account in item L of Schedule K-1, that information is based on the partnership's books and records and cannot be used to figure your basis.You do not need to file your Sch K-1 with your tax return. The partnership has filed a copy with the IRS.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #10 (permalink)  
Old 07-04-2011, 10:26 PM
Junior Member
 
Join Date: Jun 2011
Posts: 3
Once again, thank you so much for your help, this information has been exactly what I need.

Regards!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Four Steps to Follow If You Are Missing a W-2 Samatg For 2009 0 02-11-2010 03:31 PM
What to Do If You Are Missing a W-2 Samatg For 2008 0 02-12-2009 07:57 PM
What do I do when I am missing my W-2? gimini Miscellaneous 1 05-15-2007 11:14 PM
Partnership Wh716 Income 1 04-18-2007 01:47 AM
Missing Your Form W-2? Samatg General 0 02-01-2007 03:36 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning