What happens when Schedule K-1 not provided?

[user17581172451]

The attorney, who is executor of an estate of which I am a beneficiary, has not provided the K-1 I need to finalize my return. I filed for an extension when it became obvious that the K-1 would not arrive in time for the April 15 deadline. It is now plain to see that she has no intention of providing the K-1 before the October 15 deadline. Do I need to do anything at this point, or do I just let the deadline pass and then file an amended when the K-1 eventually arrives?

[Loretta P]

You may not have received a Schedule K-1 if you were just distributed assets from the estate.  The estate should have reported the income and paid the taxes in which case you would not receive a K-1.

You should contact the entity for which you should be receiving this Schedule K-1.  It may be that they extended their tax return.  

If this is the case then they have until September 15th to file their return.  You will also need to file an extension for your Individual Tax Return.  When you do this, you will then have until October 15th.

If you're thinking of filing before you get a certain form: do not do it. You should not file a return when you know that it is missing information.  

The IRS specifically prohibits tax preparers from filing tax returns unless all W-2, W-2G, and 1099-R forms are received. Furthermore, filing without all the proper forms could trigger an audit.

If you should have received a form already and haven't, then you should continue to contact the company that was supposed to issue it.

I hope that you do receive your K-1 before the October 15 deadline.

Helpful links:

File An Estate Tax Income Tax Return 

[user17581172451]

Thanks for your reply!

There definitely will be a K-1 as this distribution was from an IRA. While we are beneficiaries of the estate, we are not direct beneficiaries of the IRA so we can't just go with the usual inherited IRA procedures.

Given the past behavior if this attorney/executor, I would be seriously shocked if the K-1s arrived in time to file by Oct 15 despite our pleas.

You've cautioned me not to file without the K-1 and if we're still in limbo come the October deadline, what do I need to do? Even though I filed for the extension and paid a good faith estimate of what my tax might be, does the IRS then treat me as not having filed my 2024 return? Is there some form to send that alerts them to my situation?

[Loretta P]

I'm sorry you are having an issue with the attorney/executor.  Filing without having the K-1 from the estate and amending your return once you receive it is an option, but it has risks.  You risk filing an incorrect tax return, which can trigger an IRS notice or audit. You will also need to file an amended return (Form 1040-X) later, which can be a lengthy process. This method is not recommended if the K-1 is expected to show significant income, but may be an option if you consistently receive a K-1 with minimal or no taxable income. 

[user17600530385]

You can  still file your Tax Return together with the Form 8082.  This is the form to use to notify the IRS that you did not receive the Schedule K1.

https://www.irs.gov/forms-pubs/about-form-8082 

Who Must File

Notice of inconsistent treatment.

 

Generally, file Form 8082 if any of the following apply.

• You believe an item wasn’t properly reported on the Schedule K-1 or Schedule K-3 you received from the partnership, or on a Form 8986 received from an AAR partnership (but not an audited partnership), S corporation, estate, or domestic trust; the Schedule Q you received from the REMIC; or the foreign trust statement you received from the foreign trust.

• You believe an item shown on your schedule or statement is incorrect but it isn’t an item that otherwise has to be reported on your tax return. For example, if you believe that the percentage shown as your ownership of capital at the end of the year wasn’t properly reported on Schedule K-1, file Form 8082 to report this, even though you aren’t otherwise required to report that percentage on your tax return. If you discover this kind of inconsistency after filing your original return, file an amended return to report it. In the space provided on the amended return for writing explanations, enter “See attached Form 8082.” If the correction doesn’t affect your tax return, no amounts need to be entered on the amended return if the Form 8082 item is the only reason for filing the amended return.

• The pass-through entity hasn’t filed a tax return or given you a Schedule K-1, Schedule Q, or foreign trust statement by the time you're required to file your tax return (including extensions) and there are items you must include on your return.

• If the pass-through entity didn’t provide you Schedule K-3 and it was required to do so according to the instructions for Schedule K-2.