The shareholders 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 S corporations 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 business and its owners to separate $10,000 penalties, many businesses are taking a conservative approach. As a result, it is likely that individual shareholders 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.