Partnerships and S Corporations (All) - Schedule K-1 – Partner’s/S Shareholder’s Share of Income, Deductions, Credits, Etc.

Penalties:

• Failure to provide Schedule K-1 to partners/shareholders – $310 per partner/shareholder.

What Is This About?

• Schedule K-1 reports each partner’s or S Corp shareholder’s share of income, deductions, and credits.

• It is essential for pass-through entities since they do not pay taxes at the entity level; instead, income passes through to the partners/shareholders.

Why Is This Important?

• Partners and shareholders need Schedule K-1 to correctly file their personal tax returns.

• Not providing it on time can result in IRS penalties and delays in tax filings.

• Accuracy is crucial, as errors may trigger IRS audits or additional fines.