Late Corrected 1099s and K-1s

Due to the recent major changes to the tax law, there have been more instances of issuers sending corrected versions of Forms 1099 and Schedules K-1 for the 2018 tax year, sometimes long after the original versions were issued.

As practitioners enter the final stretch of preparing 2018 tax returns that are on extension, they should ask clients who are on extension if they have received any such Forms 1099 or Schedules K-1.

Often, as part of the final preparation of returns on extension, practitioners and clients focus on a specific Schedule K-1 that was not received until well after April 15.  However, it is important for practitioners to also ask clients if they have received a corrected version of any form that the clients already received earlier this year.

In addition, such corrected forms might be issued to clients who have already filed their 2018 tax returns.  In such cases, practitioners need to assess whether the corrections cause an additional amount of tax to be owed and advise clients accordingly.  Alternatively, such corrections may reduce the tax due on the previously-filed returns, and practitioners must weigh the cost of amending those returns versus the amount of the reduction of tax.