K-1 1065

[browncouches]

We received a K-1 late last year, do we need to file an amendment? What if we don't receive 2022's k-1 til after we file, do we have to file an amendment every year??

[MonikaK1]

If your Schedule K-1 is going to be received late and includes income, loss, or other information that needs to be reported on your individual tax return, you can either amend your return or you can choose to file a request for an extension of the time to file. If you file for an extension, you will need to pay any tax you expect to be due with your return. Filing an extension should allow enough time for you to receive the information you need to file a complete and accurate return.

See this tax tips article for more information about filing an extension.

[Mike9241]

the wisest thing to do is to file an extension and pay the tax due rather than amending it every year or sell the partnership. your choice.  when paying the taxes due in mid-April you must take into account any income you expect from the partnership. underpaying an extension amount can result in penalties. if it's going to be a loss you can ignore it. you may not be subject to a late payment penalty if you filed a tax extension on time (by the original deadline of your return) and paid at least 90% of your tax liability with your extension. The late payment penalty is 0.5% of the unpaid taxes, assessed on a monthly basis, up to a maximum of 25%. 

[browncouches]

So, we received a K-1 late last year and never filed an amendment, what do I do with it now? Is there a minimum that needs to be reported on those? 

Would we need to wait to file this year until the amendment went through? 

[DavidD66]

You should file an amended return and report the K-1.  It is not necessary to wait for the amended return to be processed before filing your 2022 return.  If you expect to receive another K-1 after the April filing deadline, I recommend you complete your tax return, but do not file it.  instead, file an extension.  If you owe additional tax, pay it with the extension.  Once you receive your K-1, you can add it to your return and file.