Copy of 1065 for partners

[Jack from Ohio]

Can someone point me to the regs about the requirement to provide to all partners copies of the 1065 return? Can't seem to find it.

I always assumed that all partners were to receive a copy of the 1065. Am I mistaken?

This client received K-1s from two different Partnership returns for 2013, and seems to be getting stonewalled about seeing the returns so he knows where this income he supposedly received came from. He did NOT receive any money as stated on the K-1 forms.

Any help appreciated.

[mcb39]

I have never given copies of the 1065 to all Partners.  That goes to the Tax Matters Partner, who signs the return.  All partners, including TMP, receive a K1.  I would certainly give any partner a copy of the 1065 if he asked for it, but have never had it happen.

 

Quickfinder for Small Business; page B-1, Paragraph 2 states that Partnerships are required to furnish a Schedule K-1 to each partner b the due date, including extensions, of the partnership tax return (Form 1065).  See IRC 6722 regarding penalties for failure to furnish a timely K-1

[Jack from Ohio]

I have never given copies of the 1065 to all Partners.  That goes to the Tax Matters Partner, who signs the return.  All partners, including TMP, receive a K1.  I would certainly give any partner a copy of the 1065 if he asked for it, but have never had it happen.

 

Quickfinder for Small Business; page B-1, Paragraph 2 states that Partnerships are required to furnish a Schedule K-1 to each partner b the due date, including extensions, of the partnership tax return (Form 1065).  See IRC 6722 regarding penalties for failure to furnish a timely K-1

I know about the K-1 requirement. My client received a K-1 with $2,000 rental income listed. He has not received a penny. Lots of drama in his family. (It is a family owned partnership)

[Lion EA]

The K-1 can report income without distributions.  Or, the other way around, such as distributing previously taxed income in a later year.  He will need to speak to the tax matters partner if he wants to find out when he will receive a distribution.

[mcb39]

Just because the K-1 shows income or a profit, does not mean that actual monies have been distributed.  Does the K-1 show an increase in his Capital account?  If not, perhaps they needed the rental income for operational expenses.  Just because there is taxable income does not mean that there is a distribution, as has been pointed out above.  Family owned as well as other partnerships often have a lot of drama involved because no two people think alike.  If the TMP is calling the shots, your client should address his questions to the TMP. 

 

My husband has been the TMP for a family-owned Partnership for 42 years.; so I know of what I speak.  I have prepared the returns for all of those years; including the one that involved the sale of a share in the Partnership from one family member to another family member.  It is better now, but there is still drama. 

 

If your client doesn't want to speak to the TMP, perhaps he could speak to the Accountant who prepared the 1065.

[Jack from Ohio]

If your client doesn't want to speak to the TMP, perhaps he could speak to the Accountant who prepared the 1065.

The Accountant that prepared the 1065 will not talk to him or give him any information at all. Not even the name of the TMP. This family drama is very deep, very old and the worst I have ever seen. Seems the other family members do not wish to talk to or give my client any information at all.

[mcb39]

Is (was) there a Partnership agreement drawn up?  If so, where is his copy?  Your client is beginning to sound like the odd man out who has burned some bridges.  Have you taken a good look at the K-1 as to any additional information?  My K-1s say who the TMP is in the name of the Partnership.  Families!!!!!  Sometimes, the worst!!!!!!

[Jack from Ohio]

Is (was) there a Partnership agreement drawn up?  If so, where is his copy?  Your client is beginning to sound like the odd man out who has burned some bridges.  Have you taken a good look at the K-1 as to any additional information?  My K-1s say who the TMP is in the name of the Partnership.  Families!!!!!  Sometimes, the worst!!!!!!

If there is a partnership agreement, my client has not seen it nor signed it. He is the odd man out for many years because his deceased father did not like his wife.

Both partnerships were established in 2013 after the passing of his father. No clue about TMP in the name. I could tell a lot about what his happening if he can get the 1065s.

He is as honest as the day is long, and is hesitant to stir up things with his family. He is actually TOO MUCH of a nice guy in that respect. It is not in his nature to be deceitful or dishonest. He just wants to know.

I created a letter for him to the tax accountant "requesting" information. We will see what that stirs up.

[michaelmars]

if he was a general partner I would think he has the right to a copy of the return.  Limited partners do not.  As a general partner he could probably request a copy from the irs.

[Lion EA]

Was the partnership organized under the laws of your state or a state?  Then public information exists about the members.  He could address his questions to the TMP in a letter that he sends to ALL partners, not knowing which is the TMP.  Write that he is giving permission for the TMP to speak with his tax preparer....

[Jack from Ohio]

He could address his questions to the TMP in a letter that he sends to ALL partners, not knowing which is the TMP.  Write that he is giving permission for the TMP to speak with his tax preparer....

That is a great idea, except, he does not even have contact information for the other partners.

[Abby Normal]

It's probably covered by state law:

 

http://codes.ohio.gov/orc/1776.43

[Lion EA]

It's probably in a public state database.