QUESTION
Can accountant change profit/loss percentage on K-1 tax form without written consent?
Asked on Mar 24th, 2012 on Business Law - Arizona
More details to this question:
Father passed away, but 2 months prior to death accountant and business partner claim father verbally gave permission to change profit loss percentage from 33 1/3% to 25%. There was no amendement to articles of organization absoultely nothing in writting and father did not tell anyone else about this so called change. What are our rights to this dispute? Would it stand up in court with nothing in writing.
1 ANSWER
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It is not clear what your relationship is to this partnership, but I assume that you are a partner whose partnership interest was reduced as a result of this unilateral action. As a general matter, such an action would be void or voidable, unless expressly permitted by the terms of the partnership agreement itself. See an attorney,
Answered on Apr 06th, 2012 at 7:43 AM