Companies not issuing K1; TT treats different companies differently

[work2live8]

Hello,

I invested in a few private companies a couple of years ago.  They all issued K-1s in their first year of operation but they did not in 2022.  When I went through the interview in TT, I indicated that I did not receive K-1s from those companies.  I did so expecting TT to keep the basis and loss carryover to a subsequent year. 

I am reviewing the tax return and see that 2 of the companies that I indicated as not sending K-1s are still shown on the Schedule E.  The others do not appear in Schedule E at all.

What should I do in this situation?  I do expect K-1s from these companies at some point.  Does deleting all forms associated with the companies lose all past carryovers?  Will filing about companies without receiving k1s cause issues?

Thank you so much for your help. 

[Mike9241]

don't know why Turbotax did as you claimed.  you need to find out if the entities went out of business in 2022 and failed to issue k-1's which will create reporting problems for you. all calendar partnerships and S-corps are required by law to issue K-1s by 9/15/2023. there are substantial fines for not doing so. you should report these failures to the IRS on form 3949-A. you should also consult a tax pro of how to file your returns if you don't receive them since you too could be subject to penalties if your income is misreported.  There are steps they can advise you to take to offer some protection.

https://www.irs.gov/pub/irs-pdf/f3949a.pdf 

[work2live8]

Thank you.  They are still in business.  They say that as a private company, they have a choice as to whether they issue k-1s.  I will take a look at the form you mentioned and see what it says about reporting the entities.

As for now, is it safe to delete the entities from my schedule e and report those entities?

 Thank you so much for your help.