Partnership buyout

[snkisttax]

The business partnership was dissolved in dec 2024, and in Jan 2025 I received a check w buyout/severance in the subject line.  3 weeks later I received an email w some brief discussion of the buyout and received 3 more direct deposits quarterly in 2025.  Nothing was signed by either party. 

yesterday I received a 1099-misc for the four payments.  This does not seem like the correct form to me for a buyout.  Any suggestions or help would be appreciated

[Rick19744]

Did the partnership file a final form 1065; which also means you should have received a 2024 K-1 that was marked "final" at the top.

Filing a form 1099-MISC is not correct.

Do you have any idea of what your total liquidating distribution payments will be?

Have you maintained a tax basis schedule?

[snkisttax]

I did receive a k1 marked as final on it in 2025 with a loss of 1,900 for 2024.

 The only thing I received for the “buyout/severance” payments for 2025 was a 1099-misc with the payment amount in box 3 which I received about a week ago

On the tax basis question.  I now know I am responsible for this information, but until I started looking this info up several weeks ago, I never knew I was supposed to keep my tax basis.  I guess I assumed the business accountant would have this info but I really never thought about it.  This was never explained to me by my business partner who was also the CEO/president/control freak of the company and used his personal accountant for the business taxes.  

Much of the problems over the years is bc the business had to be formed quickly in 2012 as we had to leave the prior investment company hastily bc the formers owners of the business we worked for had to be turned into the SEC for personal trading violations.  Therefore, the normal partnership agreements, shareholder ownership, compensation, etc… were never formally set up.