The partners want their Schedules K-1 and K-3 by April 18 so that they can file their individual returns by then. What should I tell them?

While the IRS is working diligently to enable individuals and entities to file their 2021 returns with the new schedules as soon as possible, guidance on the new forms continues to evolve. Since failure to properly complete or file the new schedules may subject the partnership and its partners to separate $10,000 penalties, many filers are taking a conservative approach. As a result, individual partners will need to file extensions for their personal individual income tax returns this year.

You may also refer them to our Frequently Asked Questions for individuals waiting on K-1s.