Form 8082

Technical topics regarding tax preparation.
#1
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A individual client investment advisor convinced the client to use his IRA to invest in two partnerships. The IRA ownership interest is 1/100th of 1%. In both cases, the K-1 was improperly sent to him in his social security number and Box I2 "Is this partner a retirement plan" was not checked.

Partnership #1 caught the mistake in 2015 and filed an 8082 along with an amended K-1. In 2016, they did continued using the SSN and have not filed a Form 8082. In 2017, they properly showed the partner as the IRA with the EIN.

Partnership #2 has filed the K-1 for 2015-2017 using the SSN rather than the EIN. Box I2 not checked.

In both partnerships, the publicly traded partnership box is not checked.

Is the best course of action to have my individual client file amended returns along with a Form 8082 explaining how two partnerships got the identity of the partner wrong? Any reason the partnerships can't each file a Form 8082 rather than my client?
 

#2
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I believe the 8082 should be filed by your client and not the partnership, assuming the partnerships don't want to amend the prior year returns and issue an amended K-1 with the correct info on it. Either way your client will be filing amended 1040s it seems.

On the face of the 8082 it says: For use by partners, S corporation shareholders, estate and domestic trust beneficiaries, foreign trust owners and beneficiaries, REMIC residual interest holders, and TMPs

Your client should not file the 8082 if (from the instructions):

If you are a partner, and all of the following apply.

°Your partnership had no more than 10 partners at any one time during the tax year. A husband and wife (and their estates) are treated as one partner.
°Each partner was either an individual (other than a nonresident alien) or an estate of a deceased partner, or a C corporation.
°The partnership did not have an election in effect under section 6231(a)(1)(B)(ii) for the tax year to have the consolidated audit rules apply.


It's Pship 1's fault that they filed an incorrect K-1 for 2016 when they obviously caught the error in the prior year. At least it appears to be sorted out now and going forward.

Pship 2 may never have been told.

Make sure Pship 2 has the correct name, EIN, and checks the retirement box on the K-1 for 2018. If they fail to issue a correct K-1 next year after your notice I'd push for them to amend the return and issue an amended K-1.
 


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