K1- draft

[Gabriela2]

I just received a draft 2021 Schedule K-1, as I was informed that this is due to the IRS’ delay in releasing new filing requirements for all partnership tax returns. So, shall i file my tax return with the draft K1? Or should I file a tax extension and do the filing after getting the final K1 which is estimated by summer end?

Thank you

[Mike9241]

your choice.   if the final and draft k-1s are different you may need to amend. in any case, 100% of any balance die for 2021 was be paid in by 4/18/2022

[AnnetteB6]

It all depends greatly on your knowledge of what the K-1 represents for your situation and whether you are more comfortable with waiting for the final version or filing an amended return.

If it represents a significant portion of your income and deductions, you should use the draft K-1 to estimate your refund or balance due.  This information will be needed if you file an extension because the extension only extends the time to file your return, not the time to pay any balance due amounts.

If it does not represent a significant portion of your income and deductions, then filing your return with the draft version of the K-1 may not pose a large risk.  When the final K-1 is issued, you can then amend your return to make any changes in the K-1 from the draft to the final version.  Such changes may or may not affect your tax return in such a way that an amended return is actually required.

[AmeliesUncle]

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@Gabriela2 wrote:

this is due to the IRS’ delay in releasing new filing requirements for all partnership tax returns.

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I suspect that is referring to the K-2/K-3 for foreign income.

Assuming that is the case, then if (1) the K-1 has no foreign income/expense activity AND (2) your personal tax return has no foreign income/expense activity, then your draft K-1 is probably going to be the same as the final version.

If there any type of foreign income/expense activity, then you may want to file an extension until you get the K-2/K-3.

[Gabriela2]

Yes, thank you, that is the reason they stated. And based on your response I also suspect draft will be same as final one. Then i understand from your response I should use draft to file

Thanks again.