The IRS requires you to report all your income, no matter how small.
If you fail to report this K-1 (or any other reported income), the IRS may send you an automated Notice of Proposed Increase in Taxes later this year. For $1 of unreported income, this is highly unlikely.
They will calculate the tax due (plus interest and penalties) and you can send them a check. No amended return is necessary, so you won't have to upgrade or file a return that would otherwise be unnecessary.
