Taxpayer received a K1 form showing a loss. Does he have to file a personal return?

Forum|Forum|1 year ago
March 23, 2025
1 reply
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Taxpayer received a K1 form showing income loss. This is the only documents received on behalf of the taxpayer. States this is his only income. Does he have to file a Return.

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George4Tacks

Level 15

No - BUT I would file.

A. If any problems, the statute of limitations for corrections or audit or ... does not start to run until the return is filed. e.g. maybe they have other income they did not tell you about, it would not be the first time this has happened to a preparer.

B. It helps to assure no one else will file and use the taxpayer's SSN

C. It establishes carryover/carryback of losses for the activity.

D. They have already taken up your time during your busiest part of the year, charge them for a tax return. That is why they came to you.

Answers are easy. Questions are hard!

I

IvelizzeAuthor

Level 3

The client has no other income and the system won't let me Electronically file it. It says: Form 1040/1040-SR Reject: At least one of the following fields must be present on an e-file return: total Income, adjusted gross income, tax on income, total credits, total tax, total payments, tax-exempt interest, qualified dividends, IRA distributions, pensions and annuities, or social security benefits. How can I file this return electronically?

abctax55

Level 15

Others have suggested throwing a dollar in as interest income to allow for efiling.

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