Form K-1

As we mentioned on our partnership page, after the partnership prepares and submits its informational tax return, and provides each partner a form K-1, with his relative share in the partnership loss, income, credit and expenses. The partnership files a copy of the K-1 to the IRS. If the partnership withholds taxes from a partner, it will provide him with Form 8805, to confirm the amount it withheld from him. You can also see your share in the partnership, your share in the liabilities, and total distributions to you during the year. It is strongly suggested to verify that this information is accurate. 

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If you are a partner in a partnership, you must report the items shown on your Schedule K-1 the same way that the partnership treated the items on its return. If you believe the partnership has made an error on your Schedule K-1, notify the partnership and ask for a corrected schedule K-1. Be sure that the partnership sends a copy of the corrected Schedule K-1 to the IRS to avoid an accuracy-related penalty.

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Collect Forms K-1 from all your partnerships and file an individual tax return - Form 1040NR.