Tuesday, March 12, 2013

Late Arriving Forms

Q.  Honey, I filed my return last week and a 1065-K1 form just arrived showing a small amount of income. Shall I just forget about it or???

A.  The answer depends on your comfort level. I prefer to take steps immediately to remedy the situation even if I need to amend the return. If you do so by April 15th, you will owe no interest on the additional tax. If you do nothing, the IRS computers will eventually catch up to you. Since the amount is small, there should not be any penalty, but they will charge you the additional tax plus interest. The problem with waiting for the IRS is they are usually about 2 years behind.

One other comment. Please check the title on your K-1 form. I find about half of these are held in retirement accounts such as IRAs etc. In this case, the item is non-reportable and you need do nothing.

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