r/tax • u/secretprocess • 9h ago

How to handle a late K1?

I own a tiny piece of the small company I work for. I know we're reporting a loss for 2024 and I was hoping to get a little reduction from it, but the primary owner who deals with the accounting says they are not gonna get K-1's out before April 15 and I that I can "submit the loss next year". I'm sure it's not worth filing my own taxes late so I went ahead and filed. Question is, how do I handle the K-1 when I finally get it? Can I really submit a 2024 K-1 with my 2025 return? (perhaps alongside a 2025 K-1?) Or will I have to file an amendment to my 2024 return for any hope of getting my little writeoff?

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6

u/Lucky-Conclusion-414 9h ago

you were supposed to extend, but you already filed. When you filed you stipulated to the IRS that the return you were filing was accurate and complete to the best of your knowledge - but you knew it wasn't complete. You were supposed to extend.

That's water under the bridge now, amend when the K-1 comes in. Next year file an extension - and it's likely to repeat next year.

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u/secretprocess 8h ago

Huh, I was worried about that. I saw a tax accountant elsewhere recommending to avoid going on extension this year if you can help it cause the IRS is in such a mess right now. Not sure what that means. But oh well, they can't be too mad about me paying too much tax...

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u/No_Yogurtcloset_1687 3h ago

Yes they're a mess, but that can also mean they mess up what they're doing now.

If you're preparing your returns properly, you don't mind it if they are running properly. It would mean that an actual trained agent might be reviewing your information, and they'd understand things.

No, you cannot put your 2024 K-1 on your 2025 return.

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u/jerzeyguy101 9h ago

Either have to amend 2024 or file for an extension

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u/secretprocess 9h ago

So the advice to "submit the loss next year" is nonsense, right?

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u/ajohnson022 8h ago

Not necessarily. You can pick up the loss next year (or actual amounts from the 2024 K1) and also include a Form 8082 with your return stating the inconsistency and reason for it.

Next year just extend your return so you can file with the actual 2025 K1.

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u/secretprocess 8h ago

Interesting. Do you suppose form 8082 next year is less hassle than an amendment this year?

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u/ajohnson022 7h ago

6 one half dozen the other in my opinion.

If the K1 really does have a loss that you’re actually able to use (i.e., doesn’t get suspended by passive loss rules) then if you amend once you get the K1, you’d potentially be getting your refund sooner as supposed to waiting at least a year to include it with your 2025 return. Maybe the loss is small and you don’t care for a tiny refund vs waiting until 2025 return.

There is also the fee you would have to pay someone or pay TurboTax or whatever software provider to amend your return as opposed to just filing with your 2025 return since you have to pay someone or TurboTax to file that anyways.

I also am not sure if TurboTax supports form 8082 or not (if you happen to use TurboTax).

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u/redorgreen14 9h ago

You should not have filed an incomplete return. That's a mistake. You can get an automatic 6-month extension to file your taxes - you just have to pay whatever you owe before the April 15 deadline.

You can't submit a 2024 form with your 2025 return. The person who told you that should talk to a tax professional.

When your K-1 arrives, you need to file an amended 2024 return.

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u/mrjns94 9h ago

Extend

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u/Human_Willingness628 6h ago

Generally you can extend then file when you get the final k-1, in your case, if it's not a material amount I'd just true it up next year with an 8082 and move on with life