IRS Issues Rules for Providing K-1s Electronically
Issue Number: IR-2012-21
The IRS has recently provided guidance for partnerships to file Schedule K-1s, Partners Share of Current Year Income, Deductions, Credits, and Other Items electronically. New guidelines have been recognized for establishments, such as partnerships, which are required to file a K-1 every year with the IRS and obtain a copy for their partners. These new guidelines are created to help partners understand the specifics associated with the K-1 and eliminate the hassle of printing and mailing since they are now available to be sent electronically.
Certain provisions apply to a K-1, which are provided in Revenue Procedure 2012-17 . Such provisions describe when a partner may provide K-1s electronically to the other partners instead of sending a hard copy. The eligibility to begin sending these copies electronically must first be coincided with the other partners. These new provisions resemble the rules governing the electronic furnishing of the 1099 and W-2's.
Under the Revenue Procedure is an explanation of how the consent can be provided electronically, which includes e-mail security and the partner's internet page. This explanation further instructs that the partners are to be informed about changes in software, the process of accessing and printing electronic statements and the responsibility delegation if the K1 does not successfully deliver electronically.
Most often, the K1 should be made available to its recipients based on the due date of Form 1065, U.S Return of Partnership Income. If your partnership is operating based on the calendar year, the due date is April 17, 2012.
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