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I have clients who have 4 businesses with 1 flowing into another, but no K1 was received or filed. Do I need to file the 1065s before attempting to fill in K1 information on their individual return?
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To start with, if they wish you to prepare the Partnership returns, you need copies of AT LEAST one most current prior return. (I would probably ask 3) Having more than one will let you get a feel for the businesses and whether they are fairly consistent from year to year, or whether the years vary greatly.
The more you understand the better off you are. Also it sounds like some of the businesses are at least related, or possibly one own's one or more of the others.
If you can gain an understanding of why the operation is structured this way, that will help as well.
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I don't know if you do, but someone needs to. Is this the first year? If not who filed them in the past.
Lots of information like this that might help someone here point you in the right direction.
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One would think that someone has to prepare the 1065 first in order to generate the K1 forms... but that is just my opinion, you do what you want to do.
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This is my 1st year filing for the client. I have no clue who filed in the past. The businesses have been operational for years now.
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Thank you
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To start with, if they wish you to prepare the Partnership returns, you need copies of AT LEAST one most current prior return. (I would probably ask 3) Having more than one will let you get a feel for the businesses and whether they are fairly consistent from year to year, or whether the years vary greatly.
The more you understand the better off you are. Also it sounds like some of the businesses are at least related, or possibly one own's one or more of the others.
If you can gain an understanding of why the operation is structured this way, that will help as well.
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Get their prior 1040 and look at the filing details. Are you sure there even is a K-1 expected? Are you sure there is a 1065 required? Look at how this was handled last year. And by the way, you will likely see who handled it, as well.
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