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It is not uncommon to receive an unexpected K-1 Form after you have already filed your income tax returns. Although it may seem like a hassle, you will need to file amended tax returns to report the activity shown on the K-1 Form. One example of how this could happen to taxpayers is in the first year that they invest in a Limited Partnership (L.P.)
Although most entities try to provide the K-1 Forms to their investors prior to the tax filing deadline, many do not have the necessary information to do so and request an extension of time to file the entity returns with the tax filing authorities (IRS and state revenue departments). Some investors, prior to becoming L.P. unit holders, are used to filing their returns early and are not aware of their need to wait until the K-1 Forms are received. Often times, investors need to get used to filing for extensions. Requesting an extension of time to file is very common. This does not mean that this is a Red Flag with the IRS.
If you have never filed an income tax return to report activity from a K-1 Form, you need to take the time to educate yourself. Sometimes detailed instructions accompany the Form and show you exactly how each line item should be reported on your income tax return.
Be sure to consult with a tax advisor for detailed guidance.