Do we need to report Final Schedule K-1 (form 1065) if final distributions were reported on W2 and taxed?

If you leave the K-1 out of your 1040 personal tax return, do any balances change?  Do any carryovers change?  It is possible, that the IRS may still inquire why the document was not reported.

Thanks for your response @JamesG1 .

I just tried adding the Final Schedule K-1 to my tax returns in turbo tax and it shows that I owe additional federal and state taxes. Do you know why would that happen given that the partnership ended in 2020 and all the distributions were taxed as income on W2? I also see that my Final-K1 has 8. Net short-term capital gains (loss)
9a. Net long-term capital gains (loss) reported.

You would have to ask the preparer of the K-1 why those capital gains entries are there and were not reported previously.

Capital gains in boxes 8 and 9 of the partnership K-1 could be taxed anywhere from 0% to 35% on the Federal tax return based upon a great number of things.

You should see ST on line 5 and LT on line 12 of the Federal 1040 Schedule D.  No other entries in boxes 1-20?

Thanks @JamesG1 , I looked up 2019 1040 Schedule D and line 5 is empty and line 12 says 39.

For 2020 Schedule K1:

-- Part II --

J has beginning and ending %

L has capital account numbers

N has partners share of 704c gains or loss

-- Part III --

8 has net short term capital gain

9 has net long term capital gain

13 has W other deductions value

16 has foreign transaction A, B, C, M, AA

19 has distributions A, C

Rest of the fields are all empty.

To answer your original question, you should report this K-1 on your 2020 Federal 1040 tax return.