Issue
The client’s situation became particularly challenging due to a last-minute ownership change that occurred after a partner’s passing. This event happened after the state K-1s had already been distributed to all the partners, adding an extra layer of complexity to the process.
Solution
The main obstacle was to update only the affected partners’ K-1s across about 40 states, while ensuring that the other partners’ information remained unchanged. This task was complicated by limitations within our tax preparation systems, as well as federal overrides that did not flow cleanly to the state-level returns.
CBIZ had multiple discussions with the team and closely reviewed the changes they implemented. We provided guidance and feedback to uphold the accuracy in state filings and special income allocations setup. Our regular check-ins and open communication channels enabled the team to solve problems collectively and adapt appropriate strategies as needed.
Outcome
As a result of comprehensive team guidance and effective project leadership, we achieved successful and accurate filings that met all compliance requirements and exceeded the client’s expectations.
| Company Information | |
|---|---|
| Industry | Petroleum Additives |
| Entity Type | S corp |
| Ownership Structure | 39 shareholders |
| Geographic Foorprint | Files in 39 states |
| Annual Revenue | $134,659,654 |
| Number of Employees | 69 |
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