bill6
Level 3

I have a client that whose income of $490 was reported incorrectly as Partnership income when in fact it was S-Corp income.  The Schedule K-1 provided to the shareholder-employee had it correctly stated as Schedule K-1 for an S-Corp. Just be clear, the error was made when this income was reported on the individual's own tax return. 

 

When it is correctly reported it doesn't change the refund amount nor the taxable income on the Federal return and has a very minimal impact on state tax return (increase in taxable income of less than $150 and decreases refund/increases tax by $10). 

 

Should I amend the returns for this error?

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