We Prepare Tax Returns!

We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Pay Your CPA

Enter $ Below
Other Amount:
Your Email Address:

S Corp CPA discusses what to do if you don’t receive Schedule K-1 | IRS Form 8082 | Form 1120-S

Form 1120s Form 8082 S Corp CPA

Late arriving Schedule K-1 from your S Corp? File IRS tax Form 8082 with your Form 1040. We offer a free phone consult on S Corp tax problems. (910) 399-2705.

S  Corp CPAs  get asked what a Shareholder should do if their Form 1120-S Schedule K-1 doesn’t arrive on time. Apparently the IRS got asked as well; they reset the filing deadline from October 15th to September 15th, 2013. Before this change, CPAs filed lots of amended tax returns when Schedule K-1 became available. Without Schedule K-1, the shareholder’s personal taxes can’t be filed accurately. So what should an S Corp shareholder do if Schedule K-1 isn’t available? The answer; file IRS Form 8082. It’s still a tax problem for the shareholder but Form 8082 should eliminate most late filing penalties.

“You also use Form 8082 if you disagree with anything on the S Corp’s Schedule K-1.”
– Gary Bode, S Corp CPA

Didn’t receive a Schedule K-1 from your S Corporation’s CPA?

Here are your options:

  • Call the S Corp CPA. Try to get Schedule K-1. I never hear CPAs confessing to filing late, but maybe some of them need a little push.
  • File Form 1040 late. Don’t do it.
  • Prepare your personal return and ignore Schedule K-1. Not the best avenue, even if you intend to amend your Form 1040 when Schedule K-1 arrives.
  • Estimate your Schedule K-1. Here you’re showing the IRS that your intent isn’t tax avoidance. I use a supplemental explanation with the Client’s Form 1040. I keep it concise with a clear presentation of the calculations. If I can’t base it on actual 2013 data, I’ll use the 2012 Form 1120-S Schedule C as a baseline.
  • File Form 8082 with your Form 1040. This officially notifies the IRS that Schedule K-1 hasn’t arrived in time to file. I still use a supplemental statement as discussed above. It includes stating specifically that the client intends to amend the tax return once Schedule K-1 arrives. Should you estimate the expected Schedule K-1’s figures? It depends on the circumstances.

Estimating your Schedule K-1 has risks. A 2013 tax court case ruled that the IRS could extend the statute of limitations for collections to six years because the taxpayer under estimated the tax consequences of his S Corp’s Schedule K-1.

I’m a Form 1120-S CPA. We operate as an S Corporation ourselves. Our virtual office allows us to serve long distance clients. If your S Corporation doesn’t have a CPA, please consider calling us for a free phone consult at (910) 399-2705.

Comments are closed.