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jacks2
Returning Member

General Partner Refuses to issue a 1120s

Hello Everyone, General Partner Refuses to issue/give me a 1120s after filling 2020 taxes. I believe 25% or over are eligible to get the 1120s.  Also CPA didn't get my signature during the tax filing and CPA is also not willing to give the 1120s. How I get ? How do i report to IRS?

7 Replies
VolvoGirl
Level 15

General Partner Refuses to issue a 1120s

Did you get the K-1 or a W2 from it?

Mike9241
Level 15

General Partner Refuses to issue a 1120s

a little confusing since there are no General Partners in an S-corporation. 

see this link 

https://www.taxlawforchb.com/2018/03/the-closely-held-business-the-minority-owner-accessing-informat...

you are entitled to a copy of the return - submit a written request to the officer and CPA

inform them that failure to provide a copy return upon written request is a violation of code section 6103(e)(1)(D)(iv) - you only have to be a shareholder during the year any - and you will report the failure to IRS 

if they still refuse you can file form 4506 to get a copy from the IRS

sometimes the IRS misinterprets the code and will deny your request. then you may need the help of a tax pro or lawyer.

 

jacks2
Returning Member

General Partner Refuses to issue a 1120s

I did get k-1 schedule and filed my personal taxes. My mortgage lender is ask for 1120s all schedules for underwriting for mortgage application. Thank you.

jacks2
Returning Member

General Partner Refuses to issue a 1120s

@Mike9241 Yes it is an S-Corporation and has partnership more than 25%. Will the Officer of S-Corp denies 1120s? 

Thank You.

 

Mike9241
Level 15

General Partner Refuses to issue a 1120s

are you saying that this was a partnership that elected S-corp taxation?

if they argue its a partnership/LLC

then 6103(e)(1)(C) would apply

(C)in the case of the return of a partnership, any person who was a member of such partnership during any part of the period covered by the return;

 

did you read my previous thread? 

you can write the CPA you are willing to reimburse for the cost of a copy of the return.  (it should be reasonable). use a method where you can prove delivery. if you still get a "NO" or no reply you'll need to see a lawyer and/or file form 4506 with the IRS. the lawyer could advise you about writing a letter of complaint to whatever state agency governs professional registration, a letter to the state's CPA society. even a letter to the IRS about the code violation (don't do this without the lawyer's advice - you may wreck the business and lose whatever you invested)

 

all this will take time and of course the expense of a lawyer., if you need one.  I would say write the letter and file form 4506.

the 4506 can take 75 days

https://www.irs.gov/pub/irs-pdf/f4506.pdf 

 

while you are entitled to a copy of the return, the real issue is the mortgage lender.  there's really no way for them to know that what you would give them is actually what was filed or if it is that it wasn't subsequently amended with substantial changes. of course, submitting false documentation for a loan is probably criminal. 

 

jacks2
Returning Member

General Partner Refuses to issue a 1120s

@VolvoGirl I did get k-1 schedule and filed my personal taxes. My mortgage lender is ask for 1120s all schedules for underwriting for mortgage application. Thank you.

SusanY1
Employee Tax Expert

General Partner Refuses to issue a 1120s

There are actually limitations to your rights to obtain the full form 1120-S and you cannot be provided with all schedules, as the rules do not allow copies of the Schedule K-1s that contain information about other shareholders to be provided to another party, unless "sanitized".

 

Your personal Schedule K-1 gives all of the information that the lender should need, if they understand that you are not the sole owner.  

 

If the lender feels like they really need to know what the total ordinary income for the entire company was they could easily determine that from the information on your K-1 (it's simple math using your percentage of ownership and the numbers on the form to reverse-engineer it).

 

You can request a transcript, as an owner, using the form @Mike9241 provided a link to above, but again you will not get "all schedules" - just the 1120S which genuinely doesn't provide anything useful here and the copy of your K-1 which you seem to have. 

 

I recently had a similar request from a mortgage company so I just looked elsewhere and sailed through underwriting without even so much as another mention of 1120-S.  That should really only be relevant if the S-Corp is applying for the loan or perhaps in cases where the applicant is the sole owner.  (If you take a look at the form itself, you'll see that it really doesn't provide any additional useful information - Form 1120-S

 

As for the CPA not asking you to sign the return, that is normal.  Each shareholder does not have to sign an 1120-S, just the officer designated to do so.  There is no misconduct there to report.  

 

 

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