Partnership Out of Business - Unlock Suspended Passive loss

[usatax]

I am a limited partner in a partnership. The partnership had been in bankruptcy proceedings for several years and there was litigation regarding management fees and it seems to have ceased functioning. There isn't any response from attempts to communicate with the receiver and there doesn't appear to be a K-1 coming. I have years of suspended passive losses (about $21,000) shown on my form 8582.
I would like to report the activity as "final year" and unlock the suspended loss.
Is there any kind of disclosure I need to add to the return since an official Schedule K-1 wasn't received?

There wasn't an official "disposition" or sale, instead the partnership just ceased to function.

[Mike9241 · Accepted solution]

First you must determine if you have basis to deduct the suspended losses. you also should determine if you have any basis remaining for which you can take a capital loss. (technically the partnership has until 9/15/2021 to issue the 2020 k-1 which is the date the IRS would prefer you wait to file).  if you file now, then since your return can't be accurate because it is missing the current year k-1 include Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR). it's used to identify estimated K-1 items on your return. that would include the deduction for the passive loss because you don't have a 2020 k-1 to tell you what happened. Also, use the form to notify the IRS that you did not receive Schedule K-1.  I don't think Turbotax includes the form which means you'll have to fill out a copy and mail in your return.

if you get the k-1 you'll have to amend.

https://www.irs.gov/pub/irs-pdf/f8082.pdf