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Quote from the FINCEN BOI Fact Sheet: "Reporting companies have 30 days to report changes to the information in their previously filed reports and must correct inaccurate information in previously filed reports within 30 days of when the reporting company becomes aware or has reason to know of the inaccuracy of information in earlier reports."

The allocation method should be in the stock purchase agreement. His team should insist on a 1377(a)(2)election as part of the agreement, otherwise he is at the mercy of the buyers come tax time. But that is not a concern of yours.

In order to elect an interim closing of the books under IRC 1377(a)(2) all affected shareholders must agree. Otherwise the pro rata method is used.

The ownership changes section of the K1 works fine. It's been awhile since I've had one, but I don't remember having any trouble getting it right. I'm surprised the seller doesn't want to close the books. If the new owners increase income substantially, the seller will be paying tax on income he'll never receive. He'll get an offsetting basis increase on his capital gain or loss on the stock sale, in this example.

IRS Announcement dated June 12, 2024: "The IRS is aware that some taxpayers are receiving CP14 (Balance Due, No Math Error) notices indicating a balance due even though payments were made with their 2023 tax return. Who is affected: Taxpayers who paid electronically or by check with their 2023 tax return, may show their accounts as pending, although the IRS has received and processed payment through their banking institution. The notice may have been initiated before the payment was processed on the account, or the payment may have been processed but contained errors and requires additional handling to address the error before updating the tax account. No immediate action or phone call needed: Taxpayers who receive a notice but paid the tax they owed in full and on time, electronically or by check, should not respond to the notice at this time. The IRS is researching the matter and will provide an update as soon as possible. Note that any assessed penalties and interest will be automatically adjusted when the payment(s) are applied correctly by the IRS. Taxpayers who paid only part of the tax reported due on their 2023 return should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives. For affected taxpayers, the IRS apologizes for the inconvenience this delay in processing your payment " I am sure we will have some panic phone calls from our clients.