AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 10/19/2007 Subject: What is a K1 Form?
Question Hi there-
I am sure the answer is complex, but could you please give me an overview of what a K1 form is? How would it be used from an investment standpoint?
Thank you!
Answer Certain types of businesses like partnerships and Sub-Chapter S corporations do not pay taxes. The income and certain expenses are passed through to the owners, who report and pay tax on the income. The K-1 is the form used to report each owner's share of income and certain expense items. You can think of it like a W-2 an employee receives from their employer.
The information from the K-1 is reported on the taxpayer's Schedule E - which is a form attached to the 1040. If you are getting a K-1, you may want to consider professional help for your return preparation.
