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<<Well, I've just received my 3rd CP-2000 notice sent to a client in less than a week. It seems that the IRS is now matching K-1 information to what is reported on Schedule E. I use the term "matching" a bit loosely here, as they seem to be a bit choosy about what they match up.>>

Thanks for the heads-up, Peter. I don't remember where in the country you practice, but I haven't had that experience here in the Southwest (yet) and I prepare a LOT of returns with Schedule E Partnership information attached.

My tax computer program prints out a summary of each K-1 input and where all of the amounts on the K-1 ended up on the tax return. I've always been amazed that the IRS didn't require a similar form as an attachment to the return (or even as a separate Form) in order to track the various amounts from the K-1 to the tax return. Without some type of "key", it's really difficult for anybody (computer or human) to track complicated (or numerous) K-1 information to the actual tax return.

Oh well...just more billable hours... :-)

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