schedule k-1

cdavis9133 · ‎March 6, 2021

my son received a schedule K-1 with only $1.00 listed under other income and no losses. Does it need to be reported?

ToddL99 · ‎March 6, 2021

The IRS requires you to report all your income, no matter how small.

If you fail to report this K-1 (or any other reported income), the IRS may send you an automated Notice of Proposed Increase in Taxes later this year.  For $1 of unreported income, this is highly unlikely.

They will calculate the tax due (plus interest and penalties) and you can send them a check. No amended return is necessary, so you won't have to upgrade or file a return that would otherwise be unnecessary.

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ToddL99 · ‎March 6, 2021

The IRS requires you to report all your income, no matter how small.

If you fail to report this K-1 (or any other reported income), the IRS may send you an automated Notice of Proposed Increase in Taxes later this year.  For $1 of unreported income, this is highly unlikely.

They will calculate the tax due (plus interest and penalties) and you can send them a check. No amended return is necessary, so you won't have to upgrade or file a return that would otherwise be unnecessary.