Schedule K-1 Incorrect

[PPJCPA]

	2016*
	Profit		Loss		Capital
	Beg	End	Beg	End	Beg	End
Partner 1	51%	51%	51%	51%	51%	51%
Partner 2	25%	25%	25%	25%	25%	25%
Partner 3	24%	24%	24%	24%	24%	24%
	2017
	Profit		Loss		Capital
	Beg	End	Beg	End	Beg	End
Partner 1	34%	34%	34%	34%	34%	34%
Partner 2	33%	33%	33%	33%	33%	33%
Partner 3	33%	33%	33%	33%	33%	33%

*2016 Reported on Schedule K-1 and agrees with operating agreement.


Partner 1 - My client, Manager of Operations
Partner 2 - Accountant
Partner 3 - Investor


During 2018, there was a disagreement between the partners and the partnership was dissolved.

2017 Schedule K-1 received only a week ago after multiple requests for the Schedule K-1 now shows my client, Partner 1, with 34% for beginning and ending Capital, Profit and Loss percentages. I know this isn't correct because the 2017 beginning should at least show the 2016 ending percentages.

The following is not the 2017 actual amounts. However the amounts are representative of allocations.

	2017
	Partner 1	Partner 2	Partner 3
Ord Bus Inc/(Loss)			(50,000)
Guaranteed Pmts	45,000	-	-

Per the operating agreement, all profit and losses should be allocated per membership interests. Therefore I believe my client should have had 34% of the total $50,000 allocated to her.

Can I report a loss on her tax return and disclose the discrepancy on the tax return? Is there a Form I need to fill out?

Your feedback is greatly appreciated.

[Lion]

Form 8082.

[TaxGuyBill]

Just to take a step back ... have you asked your client (and possibly the person who prepared the 1065) if his ownership interest changed?

Hypothetically, the 12/31/16 ownership could be 51%, and his 1/1/17 ownership could be 34%.


In answer to your question, I think Form 8082 is what you are looking for.

https://www.irs.gov/forms-pubs/about-form-8082-notice-of-inconsistent-treatment-or-administrative-adjustment-request-aar

[PPJCPA]

Thank you!