Incorrect K-1

[Florida_EA]

Individual client was issued a K-1 with the incorrect name and EIN. The name of the partner should have been an exempt IRA whereas the partner name on the incorrect K-1 was that of an individual. The individual client did not report the income and got a notice from the IRS questioning the missing items. Should we file the Form 8082 to report the inconsistency or file the Form 1065X and reissue with the correct partner name of the K-1. Note that the partnership has more than 10 partners

[TAXNJ]

Individual client was issued a K-1 with the incorrect name and EIN. The name of the partner should have been an exempt IRA whereas the partner name on the incorrect K-1 was that of an individual. The individual client did not report the income and got a notice from the IRS questioning the missing items. Should we file the Form 8082 to report the inconsistency or file the Form 1065X and reissue with the correct partner name of the K-1. Note that the partnership has more than 10 partners

Did you file the form 1065? If no, how can you file a 1065x? If yes, and it is wrong, then decide if an amended return needs to be filed. If only incorrect info is the schedule k-1 then read the schedule k-1 instructions for filing an amended schedule k-1.

If not then ask the preparer of the form 1065 to send a corrected schedule k-1.

Think the form 8082 should have been filed with client's original return.

also, From form 8082..Note:..Who May Not File
Do not file Form 8082:...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. ........

[Florida_EA]

Amended K-1

Thanks for your response. The original 1065 was filed with the K-1 for all the partners. One of the K-1s had incorrect information of the partner name and EIN. I read the instructions to the K-1 and it said that a corrected K-1 should be filed with the IRS.

As for the individual client who filed the original 1040 not reporting any income does he have to take any further action? Perhaps in his response to the IRS notice he should explain that the original return is correct and that a corrected K-1 has been issued.

As for the tax exempt IRA client who should have received the K-1 instead of the individual, does he have to take any action?

[TAXNJ]

Thanks for your response. The original 1065 was filed with the K-1 for all the partners. One of the K-1s had incorrect information of the partner name and EIN. I read the instructions to the K-1 and it said that a corrected K-1 should be filed with the IRS.

As for the individual client who filed the original 1040 not reporting any income does he have to take any further action? Perhaps in his response to the IRS notice he should explain that the original return is correct and that a corrected K-1 has been issued.

As for the tax exempt IRA client who should have received the K-1 instead of the individual, does he have to take any action?

You should talk to the preparer of the form 1065.

[Florida_EA]

Amending the K-1

It is my understanding that if I have to correct the K-1 (the name and EIN of the partner needs to be changed and nothing else) I would file a manual amended K-1 and attach it to the originally filed 1065. I would add a footnote or letter explaining the change to the IRS. Please confirm if my understanding is correct.

[JON]

Preparer of K-1 and 1065

They have to make the correction. If they have the correct information from your client they can do it quickly, if they do not have the correct information get it to them. The IRA account was where the funds came from for the investment? Who gave the partner's information to the partnership?

[Florida_EA]

Amended K-1

They have to make the correction. If they have the correct information from your client they can do it quickly, if they do not have the correct information get it to them. The IRA account was where the funds came from for the investment? Who gave the partner's information to the partnership?

We filed the partnership return and provided it to the client (partnership).

[Lion]

The plan administrator of the IRA may have to file a return for the IRA if unrelated income was generated by the IRA's investments.

[Florida_EA]

The plan administrator of the IRA may have to file a return for the IRA if unrelated income was generated by the IRA's investments.

Thanks - the responses were very helpful