reporting tax cheats in a limited partnership?
Tuesday, January 26th, 2010 at
7:33 am
hwood asked:
I have regretfully invested 50K into a restaurant business as a limited partner. The general partners ran the company out of business and took all monies as well as fixtures and building.. a real long story over several years, they netted bundles while paying the partners only 80% of original investment.
They now give me bogus tax statements saying they lost monies every year. If I file this under my personal taxes do I become liable for their accounting fraud?
I have regretfully invested 50K into a restaurant business as a limited partner. The general partners ran the company out of business and took all monies as well as fixtures and building.. a real long story over several years, they netted bundles while paying the partners only 80% of original investment.
They now give me bogus tax statements saying they lost monies every year. If I file this under my personal taxes do I become liable for their accounting fraud?
Tagged with: General Partners • Monies • Tax Cheats
Filed under: Investing
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If the statements are truly fraudulent and you have knowledge of that you would be liable if you use that information for your personal tax return. I would question how you truly would know that the partnership returns are fraudulent? You get a K-1 but would not have seen the partnership tax return is my guess. They could have had a loss because they paid a very large salary to the General Partner and that would not have been tax fraud.
If you know this to be true and you can prove it, get yourself a lawyer and take the bums to court.