As far as I understand the issue, the 1099-S came from the buyer of the real estate transaction that the partnership was involved in and as required by IRS code, they needed to report that transaction to the IRS and consequently to you. The partnership also needed to recognize that transaction and reflected it on the K-1 that they filed with the IRS and consequently with you. As long as you are recognizing the income from the K-1, you should be able to save the 1099-S with your work papers for your reference only.
