IRS Rules for Providing K-1′s Electronically: Rev. Proc. 2012-17
Certain entities, such as partnerships, are required annually to file K-1s with the IRS and provide a copy to their partners. The IRS estimates that partnerships filed almost 26 million K-1s during 2011. Revenue Procedure 2012-17 provides new rules describing when partnerships may provide K-1s electronically to partners.
These new rules make it easier for partnerships to provide this necessary information to their partners, and will reduce the expense associated with printing and mailing K-1s to partners who elect to receive them electronically. The partnership must receive the partner’s consent before providing K-1s electronically, instead of on paper similar to the new rules governing the electronic furnishing of the 1099 and W-2s.
The revenue procedure also addresses how the consent can be provided electronically — including secure e-mail and through the partnership’s internet page. The revenue procedure defines how the partnership is to provide instructions about accessing and printing electronic statements and the partnership’s responsibility if the K-1 is electronically not deliverable.