Description
Eliminate errors and gain a better understanding of the K1.
Eliminate errors and gain a better understanding of the K1. Many people know that a K1 is used to report items of income, deductions, and loss to partners in a limited or general partnership, limited liability partnership, LLLP, or who are members of a limited liability company, but dont know all of the detail that exists in a K1. Many may not know that the K1 is likely to change in 2020 due to recent changes in the tax law. Partners or members who receive a K1 often do not know how to closely examine the K1 for errors. And those partners or members who discover their K1 is wrong often do not know what to do next. While simply filing a notice of inconsistent treatment (IRS Form 8082) may seem like an easy thing to do, in fact, just the opposite is true. Careful regard must be given to the fact that a dispute has arisen, where state and Federal laws must be considered. An overall strategy is needed. This topic is aimed at helping practitioners more fully understand the issues that need to be addressed when faced with a client who comes to them with a K1 that they believe is in error, or who have not even received a K1. For those partners or members who receive a K1 that they know is wrong, they must take action. Doing nothing is not an option. In this topic, you will be provided the ability to analyze a K1, and if it is found to be in error, to then decide on an appropriate course of action, in consultation with your advisors. In order to do so, you will want to consider recent changes in the tax law and anticipate changes to the K1.
Date: 2020-08-04 Start Time: 1:00 PM ET End Time: 2:40 PM ET
Learning Objectives
* You will be able to review any K1 and understand its format, each of its parts and how to interpret it and anticipate any changes to the K1.
* You will be able to identify the mistakes commonly made with a K1.
* You will be able to evaluate what must be done when an erroneous K1 is issued (or a K1 is not issued at all).
* You will be able to discuss how the IRS will audit partnerships with erroneous K1s, in light of 2015 repeal of TEFRA and be mindful of anticipated changes to the K1.