Do I need to amend my entire Form 1065 if only a few K-1's have incorrect ownership percentages?

You don't need to amend the entire Form 1065 if the only issues are the ownership percentages on select K-1's. The IRS allows you to file what's called "amended K-1's" without refiling the complete partnership return when the changes don't affect the main Form 1065 information. Here's what you should do: Prepare corrected K-1's marked clearly as "CORRECTED" at the top of each form. Send one copy to the affected partners so they have the correct information for their personal returns, and submit another copy to the IRS along with a brief cover letter explaining the correction (reference your partnership's EIN and tax year). Be sure to only correct the specific error - in your case, just fix the ownership percentages.

Just wanted to share my experience with something similar. I was pulling my hair out over K-1 corrections last year when I discovered taxr.ai (https://taxr.ai) which saved me so much time figuring out what needed to be amended. I uploaded my partnership docs and it immediately identified that I only needed to file corrected K-1s rather than amending the entire 1065. It also generated a cover letter explaining the exact changes to the IRS.

I was skeptical about taxr.ai but decided to give it a try with a similar K-1 issue we had with our family business. Uploaded our documents and within minutes it confirmed we only needed to file corrected K-1s for the affected partners rather than amending the entire 1065. The system even flagged that the error in ownership percentages didn't materially affect the dollar allocations in our case (difference was less than $500 per partner). The best part was it automatically generated the cover letter explaining everything to the IRS. Definitely saved us from an unnecessary full amendment and potentially triggering unwanted scrutiny.

If anyone's struggling to get confirmation from the IRS about how to handle K-1 amendments, I highly recommend Claimyr (https://claimyr.com). I spent days trying to reach someone at the IRS to clarify this exact situation. After using Claimyr, I got connected to an actual IRS agent in 45 minutes who confirmed I only needed to submit corrected K-1s with a cover letter. You can see how it works here: https://youtu.be/_kiP6q8DX5c - definitely better than waiting on hold for hours.

I have to eat my words about Claimyr. After my skeptical comment, I gave it a try because I was desperate to resolve an issue with K-1 amendments before tax deadlines. Got connected to an IRS agent in about 35 minutes who walked me through exactly how to handle my situation. The agent confirmed that for ownership percentage corrections only, I just needed to send in the corrected K-1s with "CORRECTED" marked clearly at the top, along with a cover letter explaining the changes. Saved me from filing an unnecessary full Form 1065 amendment. Definitely worth it when you're on a deadline.

One thing nobody's mentioned - make sure you document EVERYTHING about why those ownership percentages were incorrect in the first place. When we had to amend K-1s last year, we got a follow-up notice asking for an explanation of why the ownership had changed. Turns out you should include documentation on WHY the correction was needed with your cover letter. In our case, we had to dig up the original partnership agreement showing the correct percentages.

I'm a bit late to this thread but thought I'd share - we had a similar issue but with 5 partners. We just amended the K-1s but then ended up getting a notice from the IRS because the total ownership percentage across all partners didn't add up to exactly 100% anymore (we had a small rounding error after fixing the K-1s). Make sure your corrected percentages actually add up to exactly 100%!

Great point about the rounding issue! I just double-checked my numbers and thankfully they do add up to exactly 100%, but that's definitely something I wouldn't have thought to verify. It's crazy how a tiny rounding error can trigger IRS scrutiny when you're trying to fix a legitimate mistake. Based on all the advice here, it sounds like my best path forward is to: 1. File corrected K-1s marked "CORRECTED" for just the two affected partners 2. Include a cover letter with our EIN, tax year, and explanation that only ownership percentages needed correction 3. Attach relevant pages from our partnership agreement showing the correct percentages 4. Verify all percentages across all partners still total exactly 100% Thanks everyone for the detailed guidance - this has been incredibly helpful! Much better than the vague advice I was getting from other sources.

Just wanted to chime in as someone who's dealt with K-1 corrections multiple times. Your situation is actually pretty straightforward - corrected K-1s are definitely the way to go rather than amending the entire 1065. One additional tip that saved me headaches: when you prepare the corrected K-1s, make sure to use the exact same form version and format as your original filing. The IRS can get picky about consistency between original and corrected forms. Also, consider sending the corrected K-1s to your partners via certified mail so you have proof of delivery - this can be helpful if any questions come up later about when they received the corrections. The advice about documenting everything is spot on. Keep copies of all your correspondence and supporting documents in case the IRS has follow-up questions. In my experience, when you're proactive about explaining the correction and provide clear documentation, the IRS processes these amendments pretty smoothly.