How are you handling K-1 preparation timing from fund admins this year
Running into the same pattern across multiple client files this year. Client invested in a fund, fund's admin handles K-1 preparation, K-1 arrives in May or later, client comes to me with an amended return scenario or an extension-already-filed scenario. Four clients this year, two last year, one the year before. The trajectory is the wrong direction.
The pattern across the four files this year is consistent. Three of the four were funds using one of the SaaS style admins that outsource partnership tax to an external CPA partner. The handoff timing during busy season is where it breaks. The external CPA is doing returns for hundreds of other clients in February and March, the fund's K-1s aren't a priority in that queue, and the timing slips. The fourth file was a fund whose admin runs tax in-house but the admin had hired junior staff who couldn't handle the complexity, which is a different failure mode (staffing) from the SaaS-admin one (handoff timing).
What I'm trying to figure out is whether this is a pre-tax season conversation I should be having with clients before they commit to LP positions. Asking GPs about their admin's K-1 preparation track record feels intrusive but the alternative is amending returns every June. Curious what other tax pros are doing on the front end of client LP commitments, and which admin workflows are still landing K-1s on time.
