K1 Electronic Delivery
Want to send your investors their K-1s via email or web portal instead of snail mail?
Most investment managers, investors (and of course fund admins) prefer electronic delivery due to its efficiency, audit trail and significant reduction of human error — stuffing Investor A’s K-1 into Investor B’s envelope or relying on the USPS to get this very important envelope into the right mail box….
If you didn’t know, now you know…
The IRS Revenue Procedure 2012-17 defines rules to ensure that K-1 recipients consent to electronic delivery, have a manner to remove consent, have appropriate software & access to receive electronic delivery, receive appropriate notice of delivery and finally have an appropriate access period.
What does this mean and what do Investors need to do?
The IRS has identified requirements (effective Feb. 2013) related to electronic consent & delivery that must be followed to ensure that the registered investor receives and can access their K-1.