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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10506
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If a partner in a partnership does not receive their K-1 by

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If a partner in a partnership does not receive their K-1 by the extension date of their person return. Can they file their tax return timely witha note to the return? what is the best way to file ?

Lane :

Hi,

Lane :

Yes, your intuition is good. You cannot use NOT getting the K-1 as an excuse for not filing - there's actually a tax court decision on this ... hang on just a sec

Lane :
Consequently, they claim they did not have the information needed to timely file their return for 2003. Petitioners further argue that because they were unable to file a timely return, they were also unable to timely pay the tax liability shown on their return.

The unavailability of information or records does not necessarily establish reasonable cause for failure to file a timely return. More specifically, a third party's failure to provide a necessary Schedule K-1 is not sufficient to establish reasonable cause. Petitioners were required to timely file a return based upon the best information available and to file thereafter an amended return if necessary.




 

Lane :

What's the moral here?

Lane :

Even extended K-1s are supposed to be issued by September 15. If that K-1 doesn't show up by October, go ahead and file the best you can. You can amend the return later if the K-1 finally does arrive.

Customer:

Is there any type of notation to the tax return that should be added?

Lane :

What you CAn do is call IRS and ask for what's called a K-1 investigation (they will also do the amse for 1099s and w-2s)

Lane :

I would call the partnership and get an estimate (or estimate as best you can)

Customer:

thank you

Lane :

You need to the send in by mail, and add a personal statement that explains that you have sill not received the K-1 ... and...

Lane :

that you are estimating as best you can in order to be tax compliant

Customer:

Graet advice thank you

Lane and 3 other Tax Specialists are ready to help you

Thanks Ben,


If you'd like to work with ME again just say "For Lane only," at the beginning of your next question.

Thanks again,
Lane