Well, it’s that time of year again, the annual battle with IRS is about to begin. And, if you’re like most private equity or venture capital firms, that means you must go through the dreaded process of distributing K-1s to your limited partners.
The Internal Revenue Service announced that the nation’s tax season will begin Monday, Jan. 23, 2017 and the filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date.
In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17. However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.
So, since tax season is upon us, how can you make K-1 distribution the simplest for both you and your limited partners? Well, you can start by keeping it simple. Look to employ an online portal where K-1s can be distributed to, and accessed by, all your limited partners. Make sure this portal provides a comprehensive overview of who has received what and when. To make the process even easier for your limited partners, ensure their tax advisers have direct access to their online portal. This will streamline the process for your limited partners and make sure all relevant parties receive the necessary documents.
Want to simplify the tax season for your limited partners? Make sure you are using an online portal to distribute K-1s and see that nothing falls through the cracks.
Streamline your K-1s with the help of digital age.