Form 1041 Schedule K-1

[Noach]

s About Taxes)/Form 1041 Schedule K-1 Advertisement Expert: Helen P. O`Planick, EA - 3/31/2009 For the last 20 years I have received interest only on money that was awarded me as a result of a class action lawsuit against a government agency. For the last two years I haven't received the interest payment owed me but the government agency still mails me the Schedule K-1 Form 1041.

My main question is: I didn't receive this form until after March 21st.(The postage date stamped on the envelope is 3-17-09 as is the form letter inside with the forms) and I had already prepared my taxes and submitted them. ISN'T THIS FORM SUPPOSE TO BE COMPLETED AND PLACED IN THE MAIL TO ME ON OR BEFORE JANUARY 31 OF EVERY YEAR?.

Are they in violation of the law? And do I have to pay taxes on money I didn't receive? I called them about not receiving the money...they promised to look into it and call me back but I haven't heard a thing from them.

[Aelfdene]

They are not breaking the law.  As long as they get the K-1 out by the due date of the return or extensions, they are okay.  You could have figured you were getting it, you should have contacted them about it or waited, so you will have to amend your return. As to not receiving the money, that is not a tax issue. Many folks pay taxes on money they don't receive as the money is reinvested.  You need to find out what is going on with your money.

Helen, EA in PA