Schedule K-1 with partnership foreign address

Forum|Forum|6 years ago
June 4, 2019
2 replies
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In Part I, box b, the Partnership name has an address in Bermuda. TurboTax only lets me enter us addresses. What can I do?

TurboTax Premier Online

GeoffreyG

Employee

The answer to this question is that whatever address you input for Partnership entity really will not matter at all, in that it has no effect on the actual calculations made for your tax return.

However, receiving a Schedule K-1 from a non-US entity (including one with a foreign address format or postal code) can be a bit of a problem; but fortunately there is also a choice of solutions for you, in order to resolve this issue. Please allow us a moment to explain that.

The only truly critical information on your K-1 (that the IRS looks to see, anyway) are the numbers contained in the various boxes, your outside basis calculations, and any supplemental K-1 information received. The rest of the information shown on the K-1, including address of the K-1 entity, is not really critical, or essential, to the accurate acceptance and processing of your tax return. Yet, for reasons of completeness, the TurboTax program asks users to fill in all of these fields from the K-1.

As for solutions, then, you have a couple of them.

Does your Partnership entity have an office or divisional operations anywhere in the United States? If so, then you can safely substitute and use that address (even if something different is printed on your K-1 . . . just don't change the EIN). Alternatively, you can just input your own personal street address, including state and ZIP code, into the address field. As long as the important information about your Partnership is correct, the IRS, and anyone else such as a state department of revenue, will know what the truth is.

Thus, either of those choices is an acceptable way to enter your K-1, and file your tax return. The TurboTax program, the IRS, and your state department of revenue (if applicable) will all accept this.

Thank you for asking this question.

BB31

I received a K-1 equivalent from a foreign partnership that does not have an EIN. It states, "There is no Partnership employer identification number for this partnership as it is a foreign partnership based offshore in the British Virgin Islands."

How do I report my expenses/losses without an EIN? Nothing has been realized so far, only management expenses.

DaveF1006

A US person who is a partner in a foreign partnership (or an entity electing to be taxed as a partnership is required to file Form 8865 to report the income and financial position of the partnership and to report certain transactions between the partner and the partnership. Form 8865 is not supported by turbo Tax but needs to be filled out and sent to the IRS. Here is a link to the form.

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