I am a partner in an LLC. I have a K-1, but I also recieved a W-2 Form. If I file my taxes just using the income information from the K-1 (guaranteed payments), will that cause a problem because the W-2 Form was submitted to the IRS from our payroll vendor?

ANSWER

The BIDaWIZ Team's Answer:

You should not be receiving a W-2 form as a partner. As per Internal Revenue Code Section 1.707-1(c), a partner who receives guaranteed payments is not regarded as an employee of the partnership for the purposes of withholding tax. Also reference General Counsel Memorandum 34173. We would recommend that you contact the payroll provider immediately and request that they issue a corrected W-2 form or W-2C.