Will there be any problems filing two K-1s under the same partnership EIN?

Forum|Forum|7 years ago
June 6, 2019
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I received two K1's for the same Partnership EIN for a farm partnership in Nebraska. In the original partnership, my self and my two siblings had a 5.25% share in the partnership and my mom had a 84.25% share. My mom passed in May. The first K-1 is for the period of 2016 before she passed. The partnership "dissolved" on her death. We reformed the partnership between the 3 siblings using the same partnership name and EIN (which Mom's estate lawyer indicated was acceptable). Each of the 3 siblings now has a 33.33% share in the partnership and we received a second K-1 for the rest of 2016 after her death. How should this be handled in TurboTax? Does the previous advice for an earlier question apply? Can the numbers just be combined? Or do I need to show the partnership dissolution and reformation somehow?

TurboTax Premier Windows

Best answer by Rick19744

While I certainly do not have all the facts, it appears that the estate lawyer thought this created what is known as a technical termination. In these cases, the partnership will retain the same EIN and there are in fact two separate tax returns filed using the same EIN.

Unless the will had a pecuniary bequest and the transfer of interests was to take care of that bequest, I don't believe a technical termination was correct.

Regardless, I would just include each K-1 separately for the technical termination year. The IRS will receive a copy of each K-1 as well and if you combine them it may cause a matching issue.

Rick19744

Answer

Level 13

Unless the will had a pecuniary bequest and the transfer of interests was to take care of that bequest, I don't believe a technical termination was correct.

Regardless, I would just include each K-1 separately for the technical termination year. The IRS will receive a copy of each K-1 as well and if you combine them it may cause a matching issue.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

jim-ericksonAuthor

Level 2

Yes, there were two separate tax returns filed for the same partnership EIN and I received a K-1 for each of them. Turbotax accepted putting in two separate K-1s with the same EIN.