Once you meet the threshold for filing a tax return then the IRS requires you to report all your income.
If you forget to report an income item, or discover one after you have filed, you have two options:
1. Amend - wait until your originally filed return is fully processed and then amend your return to add the missing K-1. For steps on how to easily amend your 2020 federal return please click the link below.
How do I amend my 2020 TurboTax Online return?
2. Wait for the IRS to contact you. If you don't file an amended return to report the K-1, the IRS may send you an automated Notice of Proposed Increase in Taxes later this year. They will calculate the tax due (plus interest and penalties) and you can send them a check (no amended return necessary). This is not an audit and is very common.
It is extremely common to omit reporting a tax form (e.g. 1099, K-1). You file before they arrive, they get lost in the mail, get lost in your house or get tossed along with junk mail.
