Good point, Lisa. This is conflicting, isn't it: "He gives the two boys a paycheck and that amount is shown as payment to partner on the tax return. But the K-1 does not reflect the paychecks."

It's hard to tell at this point how bad the Form 1065 is, or how wrong the operation is, for what they are doing and for how they are reporting it.

The filing due date for business forms was March 15. The info passed via K-1 is now gong to be used for personal tax filings. All of this needs to be reviewed, apparently.