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Level 3
April 7, 2024
Question

Partnership Return

  • April 7, 2024
  • 2 replies
  • 3 views

I have a new client that needs a Form 1065 completed for their partnership so they can use the K-1 on their personal return. They do not have good accounting records just amounts typed on a paper.  I am new to preparing partnership returns and a little skeptical given not very good accounting records.  They provided a prior year 1065 prepared by their pervious tax person.  Would other's take this work on?  What do you require from clients to work on a Form 1065?

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    2 replies

    sjrcpa
    Level 15
    April 7, 2024

    I would not take it on.

    I need a Trial Balance, Income Statement, Balance Sheet and bank reconciliation, at a minimum. And the :Partnership Agreement.

    If no extension was filed, the return is late, too.

    The more I know the more I don’t know.
    abctax55
    Level 15
    April 7, 2024

    One question... why'd they leave the prior preparer?  That answer is often quite telling; perhaps they were kicked to the curb because of the poor record keeping.

    IMHO - you should pass on this.  It's likely to be nothing but a can of worms.

    IF you do decide to continue.... get a retainer up front.

    HumanKind... Be Both