Revised 1099's and Amended Partnership Tax Returns

When you get a corrected 1099 after your club and members have already filed tax returns, you need to update your bivio account and determine if an amended tax return should be filed by your club.   You should also inform your members about the situation and let them know they may also need to file amended returns.

Before you make the corrections in your account,  print the Member tax allocation report for the year to which the correction applies.  To do this,  go to Accounting>Reports, change the date from to the appropriate year and select Member Tax Allocation report. This report will show tax allocations before the corrections.

Next, make the changes that are shown in the corrected 1099. If you have a question about how to do that, email support@bivio.com

Rerun the bivio tax program to produce an updated return.  Check the numbers shown on it with the return you have already filed.  If they are different, you need to file the amended return.  Before you mail it, make sure that the Amended return box (line G, box 5) is checked on the top of the first page of the 1065. Attach a statement that identifies the line number of each amended item, the corrected amount or treatment of the item, and an explanation of the reasons for each change.

Run an updated Member Tax allocation report for the year in which you made the changes. If none of the numbers(rounded to the nearest dollar) have changed, your members do not have a new tax liability. If any of the numbers have changed by more than a dollar, advise your members that they now have corrected K-1 forms and they may also need to file amended tax returns.  Distribute the new K-1’s to them.  There is a box on the top right side of each K-1 that you should check to indicate it has been amended.