What it is:
How it works (Example):
Why it Matters:
Also it is important to note that the IRS does not have a deadline for partnerships to mail K-1s to their unitholders, so it is important for investors to contact their partnerships regarding the mailing date. In many cases, partnerships make the schedules available online.
If you're interested in learning more about tax issues, including how to reduce your annual tax bill, be sure to read one of our most popular articles on the subject -- Tax Law Changes: The 5 Smartest Moves to Make in 2011.