![]() They also do not apply to partnerships that issue both a paper and electronic format Schedule K-1 to each of their partners. ![]() Thus, they do not apply to the electronic delivery of K-1s issued by S corporations, estates or trusts. Note that these rules only apply to the electronic delivery of Schedule K-1s issued by partnerships and LLCs taxed as partnerships. If these procedures are ignored, the partnership may be treated as not having timely furnished Schedule K-1s to its partners - and significant penalties could be assessed by the IRS. Partnerships may be surprised to learn that in 2012, the IRS issued very specific procedures that must be followed for the electronic delivery of Schedule K-1s (Revenue Procedure 2012-17). However, as a result of the COVID-19 environment, many more partnerships are expected to make the switch to electronic delivery for safety and logistical reasons. ![]() Historically, the switch to an electronic format has generally been made to reduce processing time and expense. Electronic delivery options include attaching the Schedule K-1 to an email or posting it on a secure website or investor portal. In recent years, many partnerships have transitioned to providing Schedule K-1s to their partners in an electronic format, rather than delivering paper copies by hand or by mail.
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