Quote:
Originally Posted by PersonOfInterest
What's a K-1? I just ignore all that stuff and eventually they'll let me know what I owe them. After not filing for years I'll go on a payment plan. Chances are I'll be 6 feet under before they catch up with me.
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Depending on what the K-1 is for, it may be to the taxpayer's advantage to include it on their return. MLPs and REITs often provide a reduction to taxable income during the holding period.
Conversely, if you owe taxes on K-1 income, I assure you the taxman will want his cut, in addition to penalties and interest if you fail to include on your return.