Partner Refuses to Provide K-1

[chris697]

Things went south with my business partner (we ran a restaurant under a LLC) and I have essentially "quit" since March 2023.  I have been following-up with him since March for the K-1, because I am still listed as a partner, and want to file my personal taxes, but after a few times of providing estimated dates, he now completely ignores my emails.  I know taxes are due in CA next month, but I have no idea what else I can do.  Someone suggested me using the 2021 K-1 to file for now, and then amend if I ever get my 2022 K-1.  Is that correct?  Is there anything else I can do to put pressure on my business partner?  

[Sean Enrolled Agent]

@chris697 ,
Great question! I'm sorry this happened to you! I know how frustrating it can be when we are waiting on a required form.

It sounds as if you have already followed the tips and guidelines for what to do if you have not received your K-1.

You should contact the entity for which you should be receiving this Schedule K-1.  It may be that they extended their tax return.  

If this is the case then they have until September 15th to file their return.  You will also need to file an extension for your Individual Tax Return.  When you do this, you will then have until October 15th.

If you're thinking of filing before you get a certain form: do not do it. You should not file a return when you know that it is missing information.  

The IRS specifically prohibits tax preparers from filing tax returns unless all W-2, W-2G, and 1099-R forms are received. Furthermore, filing without all the proper forms could trigger an audit.

If you should have received a form already and haven't, then you should continue to contact the company that was supposed to issue it.

I hope that you do receive your K-1 before the October 15 deadline.

[chris697]

Thank you Sean.  In CA we have an extension until October 15th due to natural disasters.  September 15th has come and gone, and my business partner still has not sent me the K-1.  I am continuing to request the K-1 in hopes that I will receive it by the October 15th deadline, but what if I do not receive it?  If the IRS prohibits me from filing my tax return without proper forms, yet I do not receive the form despite my attempts, what can I do then?

[rschule1]

Hi There:

I agree that in order to mitigate penalties that you should estimate partnership income and file a tax return by the due date, and then amend as necessary. Below is a good link to offer your partner incentive to release the K-1. In addition you should refer to the partnership agreement to determine if you are still liable for ongoing partnership liabilities. However, I mention this as incidental advice offered by an accountant. You should contact a lawyer for specific advice.

Partner K-1 

[Sean Enrolled Agent]

@chris697 ,

If you do not receive your K-1 soon, you should contact the IRS for more help and guidance.

You can call the IRS for help at 1-800-829-1040.
You can also view the IRS website for telephone assistance here: https://www.irs.gov/help/telephone-assistance
I hope this issue gets settled for you soon.