Good Evening:

A company I used to work for issued me an incorrect K-1 in 2011 and since then it has become an issue with the IRS. I have repeatedly contacted the LLC to get a revised K-1 and they keep coming up with excuses.

They have freely admitted that the form they originally supplied is wrong, but for some obvious reasons such as not wanting to have to refile their taxes and some other reasons that make me question what they are up to, their suggestion was this:

That they pay me what the difference was they calculated (and conveniently failed to back up with documentation) and bear the burden on my own. This was followed by the request at the bottom of the letter that asked for a signature by me to absolve them of any further liability.

Now as ridiculous as it sounds, I have to ask. 1. Is it even legal to ask me to do this? It sounds a lot like they are offereing to pay me so hide their legal tax liabilities. I should mention the taxable amount in dispute is about $20,000.

Any thoughts offered would be appreciated as these people are driving me crazy!

Thanks

I guess it is a legal/ moral issue; you may contact a tax attorney for accurate professional/legal help for sure. As you can see, As LONG AS you forget to take all the deductions you could have, or you make some mistakes in preparing your tax return, THEN, You should file an amended tax return if you need to correct your filing status, total income, tax deductions, or tax credits.