I am amending our 2022 Form 1065 to reflect an incorrect expense amount. I read through the IRS instructions and searched online, and it appears the process is much more complicated than I was expecting.
I used TurboTax to amend the 1065, and TurboTax creates a 1065-X, an amended 1065, and amended K-1s for me to file by mail.
However, I'm confused if I should be using Form 8986 to let the two partners know of the change in ordinary business income, or if using the amended K-1s TurboTax made is okay? TurboTax did not mention Form 8986 at all when I went through the steps of amending the 1065.
I marked that this is a BBA-AAR in Part 1, and I don't believe this results in an imputed underpayment for the partnership--the partners just need to use the revised K-1s when filing their personal income tax returns this week. (I believe we are a BBA partnership because we did not elect not to be.)
