Guest Don N Posted March 1, 2000 Posted March 1, 2000 Just recently assumed admin. for limited partnership but feel uneasy about info coming from CPA; CPA claims partners have $0 in line 15a of K-1 & receive W-2's for services rendered to the partnership; since I'm not an accountant, what info should I request so that a trained eye would be able to figure out what is going on here; things that come to mind would be the Form 1065, 1st page of each Form 1040, Schedules K & K-1, etc. - Is there more info I should ask for ?
Gary Lesser Posted August 29, 2000 Posted August 29, 2000 If it is indeed a partnership for federal income taxes, then the net of all line 15 amounts may be used as EI (subject to adjustments). In most cases, the W-2 income is not proper reporting (but it is done by a fare number of employers). OTOH, only W-2 wages are used in the case of a S corporation. In the case of a SEP, Sched C of F earned income is considered in the calculation of an owner's plan compensation. How it is determined in the case of a SIMPLE is unknown and without any IRS guidance. Riddle and Eggs![Edited by Gary Lesser on 09-01-2000 at 09:34 AM]
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