How to fix a K-1 with wrong SSN? Need advice on correcting without 1065X

4 Thanks for this info! Quick follow-up: Do you know if there's a specific IRS form for the cover letter you mentioned? Or can I just write a simple explanation? Also, is there a deadline for submitting this correction?

15 There's no specific IRS form for the cover letter. A simple business letter format works fine - just clearly explain that you're correcting an SSN error on a K-1, reference your partnership's EIN, and note that no dollar amounts were changed. As for timing, you should submit the correction as soon as possible. While there's no specific deadline for this type of correction, it's best to get it done quickly to avoid any potential issues for the partner when they file their personal return. If they've already filed using the incorrect K-1, they may need to amend their personal return, so the sooner you correct this, the better.

12 How does this service work exactly? I've got a similar issue but with multiple K-1s. Do they actually handle the filing for you or just give you instructions? Not sure if it's worth it for my small business.

3 I'm skeptical about using third-party services for something that seems relatively simple. Did you have to upload your full tax return with all the partner info? Seems risky from a privacy standpoint...

8 They don't file anything for you - they analyze your specific situation and provide customized guidance and templates. You still handle the actual submission yourself, which I preferred since I wanted to maintain control. For multiple K-1s, it would actually be even more helpful since they'd create all the correction documentation in a batch for you. They have a template system that automatically generates everything once you input the basic information. Regarding privacy concerns, I had the same worry initially. Their system uses secure document analysis technology that's designed specifically for tax documents. You can block out sensitive information like bank accounts, and they only need to see the structural elements of the forms. Their privacy policy was pretty solid when I checked it out.

7 Wait, so how does this actually work? Do they just call the IRS for you? I'm confused about what this service actually does since anyone can call the IRS themselves...

10 That sounds too good to be true. IRS wait times are ridiculous right now - like 2+ hours minimum. No way they're getting through in 20 minutes. Probably just trying to make a quick buck off people desperate to talk to the IRS.

19 It's not that they call on your behalf - they have a system that navigates the IRS phone tree and holds your place in line. When an actual IRS agent picks up, you get an immediate callback and are connected directly to that agent. You do the actual talking yourself. They essentially handle the hold time and navigation for you. I was cooking dinner while "waiting" instead of being stuck with a phone to my ear for hours. The system kept me updated about my place in line via text messages. Regarding the skepticism, I totally get it. I thought the same thing. But their technology basically automates the hold process. The 20 minutes was how long I had to wait for the callback - their system had been holding in the queue for me during that time. Much better than the 2+ hours I spent the week before trying to get through on my own.

5 Do you think it's necessary to have a tax professional review the corrected K-1 before sending? I'm worried about making another mistake in the correction process itself.

14 If your situation is straightforward like just correcting an SSN with no changes to dollar amounts or allocations, having a professional review isn't strictly necessary. The risk of making a mistake is pretty low in this case. However, if you're unsure about filling out any part of the corrected K-1 or if there are other issues with the return beyond just the SSN, then getting a quick review from a tax pro might be worth the peace of mind. Some tax preparers offer "review only" services for much less than full preparation fees.

16 Unfortunately, your partner will likely need to file an amended return (Form 1040-X). The IRS systems usually flag mismatches between SSNs on information returns and tax returns. Even though the income amounts are correct, the system may not properly associate the K-1 with their return due to the incorrect SSN. Recommend letting your partner know ASAP so they can get ahead of any potential notices from the IRS. The good news is that since amounts aren't changing, the amendment should be relatively straightforward.

Thanks for sharing your experience! This is really helpful. Quick question - when you called your state tax department, did they have a specific form for K-1 corrections or was it similar to the federal process? I'm in Texas and want to make sure I handle the state side correctly too.

Texas actually follows the federal process pretty closely for K-1 corrections! When I called the Texas Comptroller's office, they confirmed that you can submit a corrected K-1 marked as "AMENDED" or "CORRECTED" without filing a full amended partnership return, just like with the IRS. The main difference I found was that Texas prefers you send the correction to their Austin processing center regardless of where you originally filed, unlike the IRS which wants it sent to the same service center. They also recommended including a brief note referencing your Texas taxpayer number along with the federal EIN. One thing that's nice about Texas - they were actually more responsive than the IRS when I called with questions. Got through to someone knowledgeable in about 15 minutes versus the usual IRS hold times!

Great point about checking all the other K-1s! I hadn't thought about that but you're absolutely right - if I made one data entry mistake, there could easily be others. I'll go through each partner's information carefully before submitting the correction. Thanks for the reassurance too. It's helpful to hear from someone who's been through this that it's not as complicated as it seems. I was imagining all sorts of penalties and complications, but it sounds like the IRS handles these SSN corrections pretty routinely. One quick question - when you say "double-check ALL the other K-1s," do you mean just the SSNs or should I be reviewing all the allocations and amounts too? I'm pretty confident about the numbers since I used our accounting software, but want to be thorough.

I'd recommend checking both SSNs and at least doing a quick review of the key allocation amounts - especially the profit/loss percentages and any guaranteed payments. While your accounting software should have the calculations right, it's worth verifying that the percentages you entered match your partnership agreement. For SSNs, definitely double-check those against your partner records or W-9s. For amounts, focus on making sure the allocations add up to 100% across all partners and that any special allocations (like different percentages for ordinary income vs. capital gains) are correctly reflected. You don't need to recalculate every line item if you trust your software, but a quick sanity check on the major numbers can save you from discovering other issues later. The peace of mind is worth the extra 30 minutes of review time!

This is really reassuring to hear from someone who went through the exact same process! I'm glad to know it resolved smoothly for you. The tip about using red ink to mark "CORRECTED" is helpful - I hadn't thought about making it that visible. Quick question: when you followed up "a few months later" to check that everything was updated in their system, how did you actually verify that? Did you call the IRS directly or was there another way to confirm the correction was processed? I'd love to have that peace of mind knowing it's been properly handled on their end. Also, since your partner hadn't filed yet when you gave them the corrected K-1, did you have them sign anything acknowledging they received the correction? I'm wondering if I should document that my partner received the updated version, just in case there are questions later.