U.S. partnerships may now send out Schedule K-1 to recipients electronically, according to new rules issued Monday by the IRS.
Schedule K-1 is used to report a beneficiary’s share of income, deductions, credits and other items from pass-through entities, such as limited partnerships, S Corporations, income trusts and limited liability companies.
Partnerships must report this information annually to the IRS and provide a copy to their partners. The IRS said U.S. partnerships filed some 26 million K-1s in 2011.
The new guidance, Revenue Procedure 2012-17, sets out rules that describe when a partnership may provide K-1s to partners electronically instead of on paper.