JKV access fund...K-1 error?

[deanyar]

This is a heads up just for those who have invested in the JKV access fund thru CityVest (as this may effect you too):

I have discovered that for the K-1 tax packet for the JKV fund that was received for 2021, the California withholding tax statement is on a form labelled "2022", which I believe should be "2021". As a result, the state of California claims that I owe them additional state taxes. My accountant discovered this when I forwarded the info from California.

I have just sent an email to Alan to see if he can confirm this is an error. Not sure if JKV or CityVest can then remedy this....but I can respond if I find anything further out.

[ghansonuoi]

I'll second this. I got a physical letter from State of CA about the same thing. Thanks for the heads up!

[Hank]

For how long some of these private real estate guys take to send out the K-1s, you’d think they’d bother to do them correctly.

[deanyar]

I'll second this. I got a physical letter from State of CA about the same thing. Thanks for the heads up!

I did hear back from Alan, stating that his CFO will follow up with me on it...

[ghansonuoi]

I had emailed Alan too but have not heard back yet. I went ahead and paid the CA money and penalty as I wasn't sure I'd get a new K1 and have it refiled by the time it was due (~12/10? or so).

[deanyar]

So, I did hear back from the CFO from CityVest, and received a new 592-B tax form for the state of California, this time for year 2021.
Meanwhile the amount in state taxes that I supposedly owe (but in reality probably do not owe) in Cali for 2021 was just assessed with a penalty - and I had to request a PIN from the state to go login to their site, which took several days to receive in the mail (just got today) - this is required to upload additional documents. So, I just uploaded the new tax form along with a message explaining that I had just received the new form and hope that the taxes can be adjusted (as well as asking for the penalty that they assessed to be removed).

The note that I received from Cali when I sent the correspondance thru their website is that it can take up to 30 days to hear a response. I am sure I will get hit with another penalty(s?) in the meantime...

Ugh!! A friend of mine had warned me about getting into deals that involved the state of California...what a headache!

[ghansonuoi]

Well this is a little odd. Who was the CFO contact at CV? I emailed pretty much the exact same thing and got the following:


CFO:

The JKV Access Fund made a payment to the State of California on your behalf. The State doesn’t seem to have applied the payment yet, however. Please consult with your tax advisor on this but you may want to make the payment to avoid fees and penalties, then receive a refund once the state catches up.

Me:
Hi steve- thanks for the note. I went ahead and paid the 2021 tax. My concern is that the k1 for JKV was labeled 2022. Do I need a new 592B for 2021 for California?

CFO:

Sorry if I was unclear. The filing made to California was indeed the 2021 form. No additional form should be necessary.


(Note: My K1 says TY 2022 on the 592B - very specifically!)

[deanyar]

Well this is a little odd. Who was the CFO contact at CV? I emailed pretty much the exact same thing and got the following:


CFO:

The JKV Access Fund made a payment to the State of California on your behalf. The State doesn’t seem to have applied the payment yet, however. Please consult with your tax advisor on this but you may want to make the payment to avoid fees and penalties, then receive a refund once the state catches up.

Me:
Hi steve- thanks for the note. I went ahead and paid the 2021 tax. My concern is that the k1 for JKV was labeled 2022. Do I need a new 592B for 2021 for California?

CFO:

Sorry if I was unclear. The filing made to California was indeed the 2021 form. No additional form should be necessary.


(Note: My K1 says TY 2022 on the 592B - very specifically!)

Steve Katchur - email: [email protected]

That is interesting that they said they made a payment to California on our behalf. I never got this communication. I have not had a payment applied - and am still waiting to hear back from California from my communication with them, when I uploaded the new CA 592-B with the year 2021 indicated.

[Hank]

Illiquid, opaque, late K-1s, and now incorrect tax filings? What’s not to love?

[ghansonuoi]

Ha! Besides that a perfect investment! I'll reserve final judgment until these go full cycle. I am assuming that there is nothing nefarious going on and it is due to technical mishaps etc. But still a bit frustrating to be chasing this all down ourselves!