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?
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.
An office audit is a face-to-face examination conducted at an IRS office. Read the IRS definition and get more insight from the tax experts at H&R Block.
If you receive $10 or more in dividends in a year, you will receive a Form 1099-DIV. Learn more from the tax experts at H&R Block.
If you don’t file a return on time, the IRS can eventually file a return for you – it’s called a substitute for return. Get the facts from H&R Block.