K3 Tax Form Hasn't Arrived for USO LP Shares - Should I Amend or Extend?

Tax professional here. This is actually a common issue with limited partnerships like USO, as K3 forms are notoriously late - sometimes arriving in September or October, well after the filing deadline. You have two reasonable options: First, you can file an extension (Form 4868) which gives you until October 15 to file your complete return. This doesn't extend the time to pay any taxes due, just the filing deadline. Second, you can file your return now with estimates based on last year's K3 or information from the partnership's website, then amend later when you receive the actual K3. The $10k penalty your wife is concerned about likely refers to FBAR filing requirements for foreign accounts, which is different from partnership reporting. However, there are penalties for failing to report partnership income correctly, though they're typically based on any underpayment of tax.

I spent HOURS last year trying to figure out this exact situation with my MLPs. I ended up using taxr.ai (https://taxr.ai) to help analyze the previous year's K3 and estimate this year's numbers. It was super helpful because it could automatically read all that tiny text on the previous K3s and help predict what I should report. The tool basically let me upload my investment documents and it flagged the USO shares as being K3-required. Then it helped me figure out what to report while waiting. Saved me a bunch of headaches since I didn't want to pay for an extension or deal with amendments.

Just wanted to follow up - I went ahead and tried taxr.ai after seeing this thread last week. It was actually really helpful! I uploaded last year's K3 for my energy partnerships and it extracted all the data automatically, then estimated this year's amounts based on distributions and other factors. I was able to file on time without an extension. The best part was it showed me exactly which lines on my Schedule E and other forms needed the K3 info. My tax software was asking for all these random numbers and I had no idea where they were supposed to go before using this tool.

After dealing with K3 delays for 3 years straight, I finally got fed up and called the IRS directly about it. Took FOREVER to get through - kept being on hold for hours only to get disconnected. Finally found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically hold your place in the IRS phone queue and call you back when an agent is available. When I finally got through to an IRS agent, they confirmed exactly what others here are saying - filing an extension is the safest option, but if you file with reasonable estimates and amend later, they generally won't penalize you as long as you paid enough tax. The agent was actually super helpful once I got through.

I owe everyone an apology. After my skeptical comment, I was still desperate to talk to the IRS about my missing K3s, so I tried Claimyr anyway. It actually worked exactly as advertised. Got a call back in about an hour and was connected directly to an IRS rep who walked me through my options. The agent said they see this issue constantly with LPs and MLPs. She recommended filing the extension but also told me exactly how to properly document that the delay was caused by the partnership not sending forms, which apparently helps avoid certain penalties. Definitely wouldn't have gotten that info from just reading online.

My MLP K3s are ALWAYS late. I've been investing in these for about 5 years now, and I've never once received a K3 before the tax deadline. I just automatically file an extension every year now. One thing to note - even with the extension, you still need to pay your estimated taxes by the original April deadline. I usually look at my 1099-DIV from my brokerage and add about 15% to that number to cover anything the K3 might add, just to be safe.

Has anyone tried calling USO directly? I had a similar issue with Enterprise Products Partners last year, and when I called their investor relations department, they were able to email me a preliminary tax worksheet that had most of the numbers I needed.

I went through this exact situation last year with my USO shares! After hours of research and calling around, here's what I learned: USO typically releases their tax package (preliminary K-1 info) on their investor relations website around late March/early April, but the official K-1 doesn't come until September or October. I ended up using their preliminary numbers to file on time, and when the actual K-1 arrived, the differences were minimal - mostly just rounding differences and some minor adjustments. The key is to check their website frequently in the coming weeks. One thing that really helped me was keeping detailed records of all my USO distributions throughout 2024, because those numbers usually match pretty closely with what ends up on the K-1. If you have your brokerage statements, you can use those distribution amounts as a starting point for estimates. The $10k penalty your wife mentioned is likely related to foreign partnership reporting (Form 8865), but USO is a US partnership, so that shouldn't apply here. The penalties for incorrect partnership reporting are usually much smaller and based on actual tax underpayment. My recommendation: Check USO's investor relations page daily, use any preliminary info they provide to file by the deadline, and amend if needed when the final K-1 arrives. It's way less stressful than dealing with extensions every year!