Should I attach all K-1's to 2017 1065x or just the 2 with error in capital between them - no chg in total cap or 1065, just diff alloc expenses between the 2 affected.

The amounts in contributed capital were erroneously recorded, providing $15K too much to one party, and same amount understated for other.  Not caught in original filing 2016, nor 2017 filing - but there was no impact on any allocations of income or expenses for 2016 as that year was calculated correctly.  2017 Expenses to allocate between the 9 members of investment LLC were minimal and after correcting the capital accounts effective the beginning of 2017, the corrected allocations result a $32 difference in allocation between the two parties.  No other allocations affected for other 7 members.  Pretty immaterial, but the company the LLC members invested failed in 2018, so now filing final 1065 return, and the correct capital accounts are obviously needed for the correct losses to be claimed. Extended the 2018 return filing when discovered this, and plan to amend 2017 1065 to correct error and file final 2018.  Just curious if need to file all K-1's with IRS for 2017 even though the other 7 are not affected.  All will be getting their copies of final "no activity" returns so can write off their basis.

Answer

2 people found this helpful

The K-1's are part of 1065. You cannot file a 1065X (or 1065) without ALL the K-1's. 

One, they're required. Two, your capital won't balance if you're missing K-1's.

Was this answer helpful? Yes No

No answers have been posted

More Actions

People come to Accountants Community for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: