It sounds like you sold Publicly Traded Partnerships (PTP)/ Master Limited Partnerships (MLP). When you sell these, you have to report bptj your K-1 and your Form 1099-B transactions. PTPs make "dividend" payments which are in part a return of basis. Therefore, when you sell them you have to calculate both capital gain/loss - reported on Form 8949 and Schedule D, and ordinary income reported on Form 4797. Reporting the information in your K-1 package will result in ordinary income being reported on Form 4797 and a gain or loss on Form 8949. But you also have a 1099-B with the same sales that needs to be reported. Report the information on the 1099-B and then adjust to cost basis to equal the sales proceed, resulting a gain/loss of $0. The sales information on the 1099-B will match what the information the IRS receives and expects to see reported, and the correct gain/loss and oridnary income will be reported via the K-1 reporting.
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