poolcleaner
Level 9
12-06-2019
04:48 PM
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John Jones owns an LLC that is a disregarded entity. That LLC is a partner in ABC partnership. John Jones LLC receives a K-1 from ABC partnership. It is reported on the 1065 as a partner whose EIN is the EIN of John Jones LLC. It is then shown on John Jones' Form 1040 which is in his SSN but the K-1 is reported in the EIN of John Jones LLC not his SSN. Is the IRS going to know that the K-1 is really supposed to be reported on a 1040 because nowhere on the 1040 does the John Jones LLC EIN appear? We have shown the K-1 on the return as if it had been reported in John Jones' SSN but it is not!