The IRS has come out with official procedures for providing K-1’s in electronic format.
Generally, the procedure provides rules for (1) obtaining recipients’ consent to receive Schedule K-1 in electronic format; (2) notifying recipients of changes in electronic format after consent; (3) required disclosures including, but not limited to, the scope and duration of the consent and updating recipient contact information; (4) the format and content of the electronic Schedule K-1; (5) notifying recipients when the Schedule K-1 is posted to a website and the access period; (6) providing an amended electronic Schedule K-1; and (7) providing paper statements when recipient consent is withdrawn.
The procedure also provides that IRS approval to use a substitute Schedule K-1 is not required if the electronic copy furnished is an exact copy of the official Schedule K-1. The procedure applies on and after February 13, 2012.