January 28, 2005 -- For general partners, delivering K-1s on time makes it easier for a developer or promoter to approach the same investors for the next project.  The most important matter to investors, right after the collection of their distribution checks, is the timely delivery of their annual tax information.

Investors are K-1 savvy and often have numerous investments. Some investors may refuse to invest again with the same party, regardless of the economic success of the project, if the K-1s are late.

Most limited partnership agreements call for a delivery date of the K-1s to the investors by March 15.  This allows individual investors time to meet with their return preparers and file their personal returns by April 15.

To accomplish getting the K-1s out in a timely manner, planning is important on the part of the tax professional and the general partner. Cooperation, communications, and careful planning are keys to success. While the tax professional must start the work on a date that will get timely results, the general partner must have the books and records ready when planned and in the expected condition.  The tax practitioner must have software that is capable of quick turnaround and of handling multi-state filing requirements. Both parties must contribute well-trained, competent and supervised staff.  When both parties meet their commitments, the process goes smoothly and satisfies everyone’s requirements. 

Asher & Company, Ltd. has delivered over 10,000 K-1s on time every year. Call Mike Byrnes at 215-564-1900 for more information .

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