If you have a new client and you can clearly see the errors in the previous years 1120S (K1 is blank there was no income/expenses accounted for) but I took over their books in Jan of 2019 and I have advised the client that not only was there revenue for the s-corp for 2018 but on their individual return (1040) for 2018 it reflects losses that should have come from the K1 that was clearly blank that an amendment would be necessary.

The client cannot afford to amend the previous year and just want 2019 completed but their beginning balances from 2019 that are accurate in the books that I kept for them will be inaccurate on their return if I match it to the previous year

Does that make sense?

0 Cheers