I have invested in a few publicly traded partnerships (PTPs), and in recent years, I’ve experienced significant delays in receiving my K-1 forms. In 2020 and 2021, I didn’t receive some K-1s until October or later, which led to late filing penalties because I couldn’t file my tax returns on time. This has been very distressing, and I wasn’t sure if I should file without all the K-1s or if doing so would be considered incomplete by the IRS.
Can I file by April 15th (or sooner) with the K-1s I have on hand? If I file without all K-1s and then submit an amended return when the remaining K-1s arrive, would this approach avoid a late-filing penalty?
Would filing without all K-1s initially still meet the IRS requirement for filing, or could it be treated as an incomplete return? I’m worried that filing without complete K-1s might be seen as not filing at all.
What are the potential tax and penalty impacts of missing K-1s on my return? Would filing without them initially lead to a higher tax bill, and would this change once the K-1s are processed?
Are there any strategies for managing these chronically late K-1s to avoid penalties and interest in the future? Any guidance on the best practices for tax planning and compliance under these circumstances would be greatly appreciated.
Thank you for any advice on how to handle this situation more effectively and avoid penalties in the future.
