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How may I correct a wrongly reported non-dividend distribution error on my 2016 taxes?
I own a single-member LLC taxed as an S-Corp. For the tax year 2016, my tax preparer did not have the right numbers on my schedule L - the cash amount. Also on the schedule K and M-2, which do not show the non-dividend distributions to myself. As a result, the cash amount for the start of 2017 is incorrect - the retained earnings was reported too high for 2016. In reality, there were non-dividend distributions which aren't recorded as such, but show up as retained earnings. To correct it for this year, I was planning on showing those distributions on this year's (2017) tax return in addition to this year's non-dividend distributions. The end result is that I see correct balances on this year's tax return. The discrepancy is only on the schedules K and M-2 for last year (2016) vs my balance sheet. The taxes for that amount was already paid last year, so it seems that it is formality more than anything. Is this logic correct in that since I already paid my proper taxes last year, that I can do the amendment on this year's return rather than go through the complication of changing something on last year's return? I hope that I explained that properly and not confuse the reader.
Thanks,
Ashwin
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How may I correct a wrongly reported non-dividend distribution error on my 2016 taxes?
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How may I correct a wrongly reported non-dividend distribution error on my 2016 taxes?
😄
I presented myself with that argument too, and since the alternate was easier, decided to ask if that is ok. LOL.
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