Upon onboarding new partnership client, I noticed the prior year M-2 did not tie out to Item L on the K-1's that were issued. Previous accountant was not able to get the detail, reason, or work paper to give us any idea what those presumed book-tax differences are. Any tips or advice on what to do when encountering these situations?
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taxguy 23, I see this as a proverbial "dead-end street", i.e. no solution no matter what you can do. M-2 does have a provision for reconciling items, and I suppose for lack of anything better I would enter the prior year out-of-balance amount. If you don't do something with this, you will be out of synch next year and the year after that.....
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