This time of year, we start to receive many requests from investors about when they can expect to receive their tax documents in order to file their personal returns. Before we go into the answer for this let’s discuss a few deadlines that the IRS sets for various tax documents. 

If you work for an employer, then you typically receive a W2 which provides the details to file your personal return. The deadline for issuing W2s is January 31st. These must be post-marked or electronically delivered by deadline each year. This deadline typically cannot be extended and is considered a “hard deadline”. These are usually not hard to issue on-time because it is just the data from the payroll that gets dumped onto a special form for you personally. There is no extra accounting or filing that has to happen in order to print these W2s for employees. 

For those of you who may be new to passively investing in private equity offerings in LLCs, then you might be thinking that the tax documents for your investments are due by January 31st as well. However, this is not the case, and you will not be able to file your personal taxes until you receive all of the proper documents to file. 

The corporate returns, including LLCs, have a deadline of March 15th each year. This means that most schedule K1s which are issued to partners within an LLC are not required to issue the schedule K1s until after the corporate return has been finalized. Obviously, the schedule K1s are contingent on the outcome of the overall return so these are not able to be issued until after the corporate return has been finalized. 

With the corporate returns, the deadline is March 15th; however, there is an option to file an extension with the IRS to allow the corporation more time to complete their return and this will delay the issuing of the schedule K1s to the partners of the corporation (LLC). 

Of course, most of you know that the personal tax return deadline each year is scheduled for April 15th, unless of course, the powers that be decide to extend this deadline due to the pandemic like they did last year. 

Our group works very diligently to issue these schedule K1s on time or early if possible. We don’t want to hold you up from filing your personal tax returns because we had to file an extension on the corporate return. 

Up to this point, in prior years, we have been able to issue the schedule K1s on-time or early in some cases.

As of the writing of this article we are still on-track for on-time delivery of the schedule K1s for you. However, it is possible that things could change, and delays could occur. Rest assured that we are working every possibly angle to issue your schedule K1s on-time. 

If there is a delay, we will be communicating this to you via email with the monthly property updates or possibly a special tax update email so you can be aware of where we are in the process. 

All schedule K1 tax documents are securely uploaded to your investor portal once we receive them from our CPA who handles the corporate tax return.

If you have any questions about these tax documents feel free to email investorrelations@passiveinvesting.com and someone from our investor relations team will be able to assist you further.