A partner was erroneously classified as a foreign partner on Schedule K-1 for 2017 and 2018. He is actually a green card holder and although he lives in London, he should be classified as a domestic partner. Would you amend the whole 1065 for this change? Just fix it next year? Can you amend just a K-1?
I would definitely give the partner a revised K-1 for each year showing domestic partner checked. I probably wouldn't amend 2017 and 2018 (assuming not fiscal years) for that if the IRS hasn't sent a notice (especially if it's a BBA partnership, you really won't be able to without going through the AAR process). I'd confirm question 14 on page 3 is answered No for 2019 if there are no foreign partners...
2019 hasn’t been filed yet and oddly enough, question 14 has been marked no on both 2017 and 2018. This partner is just marked “foreign partner” on his K-1” only. Do you think this could trigger an audit or a notice and if so, do you think this could easy be handled as a simple error?
I don’t see this likely triggering an audit , perhaps a notice. I would just get a signed W-9 on file for the partner, and if you get a notice, you’re ready to respond (preparer had inadvertently marked “foreign partner”...attached is w-9 for the partner indicating he is a domestic taxpayer...)
25-May-2020 6:11am
