Eliminate errors and gain a better understanding of the K-1.
Many people know that a Schedule K-1 exists for limited partnerships and LLCs which are treated under the Federal tax law as a pass-through partnership. However, far fewer people understand how every part of the Schedule K-1, the ‘four corners’ of the form, contain ‘partnership items’ that are of importance when it comes to any IRS audit. Over the years, the Schedule K-1 has undergone important changes that highlight different issues of importance to the IRS. Understanding that history, those changes, informs those who are tasked with filling out or interpreting Schedule K-1s. Far too often, a Schedule K-1 is viewed as definitive on a legal or tax issue, when, in fact, it is just a starting point.
What to do when the Schedule K-1 is in error, and the steps that need to be taken to try and fix the Schedule K-1, before filing IRS Form 8082 (Notice of Inconsistent Treatment) is critical, as is knowing the underlying baseline partnership or operating agreement and/or the partners’ understanding. Practitioners must also know about BBA Partnerships, and whether one is able to opt out of the BBA Partnership audit rules, and the implications of those rules. One also must know how the Schedule K-1 interacts with other schedules, like Schedule K-2 and Schedule K-3 and uses ‘codes’ to assist the end user when receiving the Schedule K-1. Trying to master the 4 corners of the Schedule K-1 is easier said than done. That being said, in this presentation, we look to review best practices aimed at error identification and resolution. We will also review the latest developments impacting Schedule K-1 preparation and analysis.
Learning Objectives
- You will be able to describe the features of any K-1.
- You will be able to explain the history of the changes made to the Schedule K-1 and the implications of those changes.
- You will be able to review best practices on how to identify errors in any K-1
- You will be able to discuss what should be done if either no K-1 is issued or an erroneous K-1 is issued
Agenda
Speakers
T. Scott Tufts, Esq.,
CPLS, P.A.- After running his own firm from 2004-2018, he joined CPLS, P.A. in January 2019
- Tax and business law attorney with over 27 years of experience taking on complex business and tax matters, often of a forensic nature
- Practice areas stretch beyond IRS disputes, extending into complex areas such as employee vs. independent contractor disputes, IRS and related whistle-blowing, abusive tax shelter and scheme analysis, LLC, LLP, and LLLP disputes, and probate and trust estate litigation, with an emphasis on exploitation of the elderly claims impacting estates
- Advises on a national level, assisting on the unique issues that arise as part of his practice areas, whether it is IRS Forms Analysis and Review (focusing on Forms 8886, 8082, K-1, SS-8, Form 211, Form 911, and many others); Tax Shelter Analysis, or Partners in Peril; or IRS Whistle-blower Claims
- Conducts regular seminars and workshops on areas focused on whistle-blowers and the handling of IRS disputes, as well as in the areas of probate and tax, and partnership and LLC matters
- Wrote several publications: Evaluating LLC Operating Agreements Containing Carte Blanche Authority and Right to Rely Provisions Purporting to Release Third Parties from Any Duty to Inquire, Tax Section Bulletin, Florida Bar, Tax Section, Vol. XXIX, No. 2, p. 7, 10-26 (Fall 2013); AD Global and the Statute of Limitations for TEFRA Partnerships: Will the TMP Ever Have to Stop Looking in the Rear View Mirror for the IRS, Tax Section Bulletin, Florida Bar, Tax Section, Vol. XXIV, No.2, p.14, pp.25-29 (February 2006); It Ain’t Over ‘Til Its Over: When Partnership Tax Vessels Make Ill-Advised Journeys and Wind-Up at Harbor Cove Marina, Journal of Business Entities (September/October 2004); What IRS Form 8082 Can Do For You (and to you!) and Your Closely-Held Partnership Now that the IRS’ K-1 Matching Program is Underway, BNA Tax Management Real Estate, Vol. 19, No. 12 (December 3, 2003); Are Single-Member LLCs a Ticking Time-Bomb for Asset Protection?, Are Single-Member LLCs of Any Utility for Asset Protection after the Florida Supreme Court’s Decision in Olmstead?, ABA Teleconference, August 24, 2010
- LL.M. degree, taxation, University of Miami School of Law; J.D. degree, Wake Forest University School of Law; B.S. degree, accounting, Florida State University
Who Should Attend
This live webinar is designed for accountants, CPAs, attorneys, CEOs, presidents, vice presidents, CFOs, controllers, financial planners, business owners, enrolled agents, and tax preparers.
