I received a 2020 K-1 for my limited partnership in March 2021. Last month I received a second (very different) K-1 for the same partnership, not amended. What do I do?

[rebentley320]

The 2nd K-1 came from a different accountant.  He said he didn't know about the first K-1.  I'm reluctant to amend my 2020 taxes since I do not know which K-1 is correct.  Nor do I know whether the IRS in fact received a copy of the first K-1.

[Anonymous_]

You need to determine which one is the correct K-1 if the amended box is not checked.

[rebentley320]

While I appreciate the response, just how am I supposed to determine which one is correct?

[Anonymous_]

You need to contact the issuer.

[rebentley320]

There are two issuers.  The first is the accounting firm that filed the K-1's on behalf of the general partner.  The general partner has been removed from the company by the SEC for several illegal violations and cannot be contacted.  The accounting firm is also not available since it has been sued and the suit is on hold until the Receiver finishes her job of selling all assets and returning what is leftover to the limited partners.

The second issuer works for the Receiver and maintains that his version of the K-1 is correct.  However, his numbers do not make sense.  I have pointed out these issues am still waiting for answers.  Ultimately, I need to know if the IRS accepted both versions of the K-1 and, if yes, why it did so.  If no, then I need to know what happens to the initial accounting firm that may have distributed K-1's to investors but did not file the K-1's with the IRS.  I still don't know which version is correct and whether I need to amend my 2020 tax return.  Any further ideas?

[Anonymous_]

If you can document that the Receiver submitted the return to the IRS with some sort of statement that the K-1 is correct, that would certainly help in terms of justifying that version.

Regardless, and note that I am not advocating this position, you most likely timely filed your 2020 return which would mean that the limitations period would expire in about a year and a half (i.e., filed on or before April, 2021 with the SOL expiring in April, 2024). Thus, one option would be to wait and do nothing unless, and until, you hear from the IRS.

[rebentley320]

Thank you, that makes sense.  I'm going to wait for the time being as my questions/comments to the Receiver's accountant may result in further changes to the K-1's.