Handwritten K-1?

[ETax847]

A prospective client wants me to amend her 2022 Filing.  I did not file the original 2022 tax return and when I asked for the source documents, she provided me with a handwritten K-1.  Would anyone file a tax return off of a source document that was handwritten? 

[Lion EA]

Are you familiar with the firm who generated the K-1? Or the preparer of that return? For a prospective client, I'd probably say we're not a good fit. Goodbye.

For an existing client that I like and respect, I'd dig a little deeper.

[Medlin Software, Dennis]

There is always an amount of money which makes any task "easy" to do.  Whether or not this prospect will pay it is the question.

[DANRVAN]

3 hours ago, Lion EA said:

I'd dig a little deeper.

For sure!

[BulldogTom]

@ETax847 Does that handwritten K1 make you queasy?   Does it substantially change the return, as in it is going to generate a great big refund?   Was the original K1 (if there was one) also handwritten or was it computer generated?   Is the original return also handwritten?  Who prepared the original return and why aren't they amending (always a big flag for me if there is not a good answer to that question)?  Who prepared the entity return that spun the K1 to your prospective client?   How much of that entity does your prospective client own?

Lots of questions, very little info in the OP.   

Trust your gut.   You should be able to distinguish the BS from a legit taxpayer just trying to do the right thing. 

Tom
Longview, TX

[mcbreck]

Can you pull the transcript?

I get hand written 1099-nec's all the time from clients. Never had a hand written K-1 but it isn't prohibited. My guess is she produced the tax return themselves?

[BrewOne]

I would be interested to hear if the K-1 shows up on the transcript.  My experience with hand-written information returns (i.e. 1099's) is that they can take more than a year to show up in IRS records (if at all).  So you may not be able to know if it was filed--the questions about the origin of the K-1 seem key to deciding on how to proceed.  As well as knowing why they are not willing to go back to the original preparer to amend.

[DANRVAN]

On 1/5/2024 at 11:39 AM, mcbreck said:

hand written 1099-nec's all the time

But there is a huge difference in the complexity and knowledge needed to prepare a  K-1 (and related 1065..etc) vs a 1099.

Also, self prepared 1099's are wide open to mistakes like reporting rents as SE income.  I see it every year!

[BulldogTom]

And just going off the rails a little bit....is the prospective client subject to K2/K3 reporting?

Tom
Longview, TX

[ETax847]

I went with my gut feeling and did not take this prospective client on.  The more questions I asked, the more skeptical I became.