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Never received 2018 K1

Technical topics regarding tax preparation.
#1
TY20XX  
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42
Joined:
13-Feb-2020 12:31pm
Location:
IL
I have a client that never received their 2018 K1's from a partnership they have an interest in.

I have read there is a way to request a copy.of the K1's, but how would you do this? Would a 4506-T assist in obtaining them?

Also can he request a copy of the returns from the IRS as well? If so, how?

The Syndicator is not cooperating and has not been transparent. My client has no operating agreement or and records. Just received K1's for prior years . We are not aware of the Tax firm that filed the partnership's return.

Attorney we spoke with advised to gather any I formation and will send a demand letter.

Can anyone dealt with this situation before and what would be the best approach.

Final note, client has filed based on estimates, but will amend once we receive the updated K1's.

Thanks in advance.
 

#2
AlexCPA  
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Los Angeles, CA
My first step would be to obtain a signed Power of Attorney (Form 2848) and call the IRS Tax Practitioner phone number ((866) 860-4259) to request transcripts for the taxpayer. Specifically, I would request the "Record of Account" and "Wage and Income" transcripts (the various transcript types are listed here: https://www.irs.gov/individuals/tax-ret ... order-them). The Wage and Income transcript may contain some, but not all, of the information shown on the Schedule K-1 if one was filed (there may be supplemental information shown on the Schedule K-1 which will not appear on the transcripts).

Aside from filing the returns with best-efforts estimated figures and an explanatory note indicating that the partnership has not provided Schedules K-1 and has been uncooperative (including evidence of a good faith attempt to obtain the missing Schedule K-1), I'm not sure that much else can be done.
Even more of my antics may be found on YouTube:
https://www.youtube.com/channel/UCXDitB ... sMwfO19h7A
 

#3
novacpa  
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Arlington, Virginia
If you qualify to get a POA good; if not have the client get his "his wage & income transcripts from the IRS" - give them to you.
Match items on W&I to tax return.
May need to prep and file 1040X.
 

#4
HowardS  
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Southern Pines, NC
Will a transcript have enough information for the partner to adjust his basis?
I suffer from depreciation.
 

#5
TY20XX  
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Location:
IL
Thanks a lot! I will get on the horn Tuesday.

Is there a way to request transcript for partnership returns/K1's.

While AlexCPA and novaCPA 's response may have provided me with the guidance I may have needed. I am still open to any advice regarding potential issues I may receive.

Thanks for your input. I have already received my money's worth for signing up. ; )
 

#6
skassel  
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San Mateo County, CA
Unless you are the general partner, you have no legal right to request a copy of the transcript or anything else for the partnership.
Steve Kassel, EA
 

#7
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Location:
WA State
skassel wrote:Unless you are the general partner, you have no legal right to request a copy of the transcript or anything else for the partnership.


You may want to read §6103(e)(1)(C)
~Captcook
 

#8
supdat  
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New York
Do you think the partnership might be experiencing financial problems? If the general partner/manager refuses to respond to inquiries, and your client is receiving no distributions or communications, this might be the case, which might mean that Form 1065 for 2018 has not yet been filed.

If I don't have Schedule K-1 by the due date of the return for a client, I will usually attach Form 8082 to the return, and report that Schedule K-1 was not received from the entity. Advise the client that an amendment may be required if and when Schedule K-1 is received.
 

#9
TY20XX  
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42
Joined:
13-Feb-2020 12:31pm
Location:
IL
So this is interesting...

I took AlexCPA suggestions and pulled the wage and income transcipts.

In 2017, the GP provided K-1 shows my client owns 5% of each partnership (2 entities). According the to the IRS, the 2017 and 2018 transcripts state the GP is only reporting my client owns 0.05% of each entity (yes the decimal is in the correct place. Years prior to 2016 transcripts report 5%). Also my client's 2017 GP provided K1 reports a $30K distribution, IRS transcript does not report anything. I'm not sure why my client didn't question not receiving $30K when the K1 says he received it. His taxes were filed reflecting a $30K distribution, he just never received it.

This is going to get interesting. My client will be reaching out to an attorney to send a demand letter, for current and prior K-1. We wont mention what we know, we would like to trap him, if possible.

Beyond that, I don't know were this will go. Can anyone provide any advice or suggestions?
 


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