TAX issues: k1's and personal returns - Any tax experts here?

in a partnership one partner took a disproportioned amount of the 50/50 split that the tax returns indicate. That partner took approx 70% of the income and skipped town. (this partnership took draws by writing checks to themselves from the company checkbook whenever they needed). Is the other partner who took draws of only 30% of the income responsible to pay taxes on 30% of the income or the 50% of the company income (the split of the profits the K1's indicate)?

Answer:
I notice that you are UK.

I'm not sure of the rules for UK; but, here in USA, it's the K-1 information that controls amounts on a tax return. The theft is a separate issue that should be addressed on the subsequent year's K-1.
Any real tax experts will charge you for advice.

You expect top answers here for free?
Even though I can guarantee that you will not be happy with the answer to your question, you really should check with a knowledgable tax preparer. If that individual is not a friend, they may charge for their assistance.
You must report the 50% as indicated on the K-1. The only thing the IRS will look at is that K-1 and if your return doesn't match it then your return will be flagged, ie. expect notices. (Actually the IRS doesn't have an electronic system to match K-1s to 1040s, but it could still get caught.) As for the theft, you'll need to hire an attorney. Good luck and rest assured; this happens a lot with partnerships!

The answers post by the user, for information only, BAnswer.com does not guarantee the right.

Other Questions and Answers:
  • Require help regarding Income tax calculation in US.?
  • I am on H4 visa and my husband is on H1 visa. Can I start my bussiness in NYC and what are the requirements?
  • Is it true that if you are paid bi-weekly you actually have more taxes deducted from your paycheck? If it is,?
  • Can he claim my kids, too.?
  • I filed a form 4868 (extension) for 2005 income taxes. Until when do I have to complete my tax returns?
  • Is the TaxCut program right when it comes to the National average Wages, Interest, Dividends, Unemployment?
  • How much money can i gift my children tax free in the year 2006?
  • What type of account is a "cost of land" account?