Delivery of K-1s

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#1
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How does your firm deliver K-1s to recipients for which you don't prepare the recipient's return?

In the past, I have password protected each K-1 with the applicable owner's tax ID, zipped all of them up in a zip folder, and given to the partner or manager that I interface with for distribution to the individual recipients.

I'm wondering if there isn't some kind of electronic distribution that has less friction and goes directly to the recipient and provides a better client experience?

Uploading to my portal and generating a shareable link for each partner would be tedious. And, I'm worried that if I set an expiration of 30, 90 days, whatever, I'm going to have the partner come back to me after the expiration and request the link again (if they are a procrastinator). Although I think that can be somewhat mitigated with a sternly worded "please download or forward this link to your tax professional ASAP, as this link will expire soon if not used" message.
 

#2
AlexCPA  
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While I can see the additional value provided for your client (the partnership), I leave the responsibility to deliver K-1's to the partners on the client. Why add the additional headache of partners complaining that they didn't receive the K-1, that they must now amend their returns, the link expired, etc.!? We have enough to worry about! :shock:
Even more of my antics may be found on YouTube:
https://www.youtube.com/channel/UCXDitB ... sMwfO19h7A
 

#3
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WA State
We use SafeSend to deliver returns and there is an option for the signing partner to forward K1s
~Captcook
 

#4
Beagle  
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Freelander
I use OPs method except I send each K-1 separately encrypted so that they can just forward it easily without any work on their side. Encrypted zip files are terrific though for others. I have at the bottom of my email instructions how to get 7zip to unpack.

I have a tech oriented FBI client who says encrypted files of any kind are not trustworthy and refuses me to send him any but he admits they are probably better than a portal. He HATES the portals everyone uses.
 

#5
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Northern MI and Coastal SC
I provide them all to the signing partner/shareholder and they distribute the K1s. I upload them individually to SmartVault and provide links so they can easily download and send however they please, and if that is via regular e-mail, that's on them.
 

#6
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North Shore, Oahu
Provided (in individual PDFs) to signing person only via ShareFile secure download with instructions for signing person to send to each partner/SH.

Instructions marked "Important(!)" in case they don't know so they don't overlook.
 

#7
ATSMAN  
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MA
After a big fiasco few years back because one K-1 member wanted me to pay for their amended return I have a strict policy that I spell out right at the time of engagement. I will deliver K1 either in a pdf or hard copy to the trustee or managing/tax partner. It is up to them when and how to deliver to the beneficiaries. I am NOT going to be baby sitting them. I don't take calls from benes either.

Also a notice is delivered as soon as the paperwork is submitted to tax prep that they MUST wait for the K1 to file their own 1040 forms.
 

#8
smtcpa  
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Richmond, VA
I deliver all K-1s to the tax partner/shareholder's portal and they are responsible for distributing them to partners and shareholders.
 

#9
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Thanks guys.

The consensus seems to be the same as what I do.

My engagement letters make it clear that it is the responsibility of the partnership to distribute K-1s to partners/members.

I do like the idea of making them electronically available to the partners, but I don't have any easy way to implement this. And, I think doing so may have data security and other liability risks.
 


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