Description
Eliminate errors and gain a better understanding of the K1.
Many people know that a Schedule K1 exists for limited partnerships and LLCs which are treated under the Federal tax law as a passthrough partnership. However, far fewer people understand how every part of the Schedule K1, the four corners of the form, contain partnership items that are of importance when it comes to any IRS audit. Over the years, the Schedule K1 has undergone important changes that highlight different issues of importance to the IRS. Understanding that history, those changes, informs those who are tasked with filling out or interpreting Schedule K1s. Far too often, a Schedule K1 is viewed as definitive on a legal or tax issue, when, in fact, it is just a starting point. What to do when the Schedule K1 is in error, and the steps that need to be taken to try and fix the Schedule K1, before filing IRS Form 8082 (Notice of Inconsistent Treatment) is critical, as is knowing the underlying baseline partnership or operating agreement andor the partners understanding. Practitioners must also know about BBA Partnerships, and whether one is able to opt out of the BBA Partnership audit rules, and the implications of those rules. One also must know how the Schedule K1 interacts with other schedules, like Schedule K2 and Schedule K3 and uses codes to assist the end user when receiving the Schedule K1. Trying to master the 4 corners of the Schedule K1 is easier said than done. That being said, in this presentation, we look to review best practices aimed at error identification and resolution. We will also review the latest developments impacting Schedule K1 preparation and analysis.
Date: 2024-08-21 Start Time: 1:00 PM ET End Time: 2:40 PM ET
Learning Objectives
* You will be able to describe the features of any K1.
* You will be able to explain the history of the changes made to the Schedule K1 and the implications of those changes.
* You will be able to review best practices on how to identify errors in any K1
* You will be able to discuss what should be done if either no K1 is issued or an erroneous K1 is issued