Yes you can be taxed on an amount that is greater than the amount of your distributions.
If this K-1 is from an investment that is held in an IRA account this information does not need to be reported on your tax return. The K-1 is for your information.
If you have income in Box 20 with a Code V and it is more than $1,000 you may need to also file a form 990-T. Your plan administrator should file the form and pay any tax that may be due out of your IRA account, but it is best if you follow up to make sure the form was filed and the tax was paid.
If your plan administrator did not file the form you are responsible to for filing it and paying any tax that may be due. You would need to print your return, sign, date and mail it in to the IRS with the form 990-T and K-1 you received.
[Edited 03/06/20 10:48 PST]
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