Masking SSN

[witzlibatcltd]

Am I required to print the SSN's of the partners on their K-1's in a partnership or should I be able to mask the SSN.  

Obviously it makes sense to show the SSN's to the individual partners so an error can be corrected.  But, should the Tax Matters Partner be able to see the SSNs as well?

I just think a simple option to mask the SSN's should be available when you wish to print a return.

[Skylane]

I don't think there's a 'masking requirement' per se, but it's generally a good practice to mask SSN's.  

[BobKamman]

Because, the tax preparer is more trustworthy than the Tax Matters partner?  If the Tax Matters partner asks, "before I sign this return, can I make sure we aren't going to be penalized for a wrong SSN?", what do you say?  

[witzlibatcltd]

Bob, that's a great idea.  Create an LLC to invest in partnerships.  Obtain an EIN number for the LLC and you can use the EIN number instead of a SSN.  The LLC can invest in an unlimited number of partnerships, etc.

But regarding you previous reply, what if the Tax Matters Partner steals one or more of the other partner's SSN.  A jury might say, you could have masked their SSN but you chose not.  

I know one person who described a partnership as a future messy divorce. 

So right now I like the LLC/EIN number idea.  I will need to work on that.

Thanks

[BobKamman]

I have spent a career advising clients to avoid partnerships, because one of two things always happens:  They have profits, and argue about how to divide them; or they have losses, and argue about how to pay them.  I am always amazed by how many partnership questions there are here.  But then, even with an LLC it is often a good idea to elect S Corporation status.  If you can't trust the people you invest and work with, enough to share your SSN, then you probably can't trust them at all.  

[sjrcpa]

@witzlibatcltd If the LLC is disregarded for tax purposes you have to disclose the name and ID# of the actual owner.