Question

I’m in a business partnership and I got my Schedule K-1 from my business partner. I think he claimed deductions for the LLC that aren’t valid. Can I protect myself using Form 1040X to file an amendment and do I also need to complete Form 8082?

Answer

If you think there’s an error, contact your partner and ask him for a corrected Schedule K-1 so you can file an amended return. Make sure he also sends the LLC’s corrected K-1 to the IRS.

Don’t file your return until you have received the corrected K-1. If you file before getting the new K-1, you must either:

  • File using the information on the original K-1. Then, amend your return after you receive the corrected K-1.
  • File using the information you believe to be correct. If the information differs from what’s on the K-1, you must also file Form 8082. Otherwise, you might be subject to an accuracy-related penalty.

Related Topics

Related Resources

IRS Letter 728 – Current Balance Due

Your IRS balance due has been assigned to a Revenue Officer. Learn more about IRS letter 728 and how to handle it with help from the experts at H&R Block.

Incorrect CP2000 Notices Are More Common Than You Think

Here are the five things you need to know to respond to the IRS when you get an incorrect CP2000 notice, including how and when to respond.

Statute of Limitations

Learn how long the IRS has to assess and collect taxes -- and how long you have to claim your refund. Learn about the statute of limitations from H&R Block.

New IRS Process for ITIN Renewal | H&R Block

There's a new IRS process for those who have an expired ITIN. Here is some information from H&R Block that you need to know before renewing your ITIN.