I have a partnership that closed Dec 31, 2022 and final returns filed. Late 2023/early 2024 they filed amended 941 returns for the 1st and 2nd qt of 2021 for ERC. The received the money November 2024. The money was deposited into partner #1's business account - he said he posted it as owners contribution -- (He opened a business with the similar name as the old business when they folded in 2022 and basically continued the old business under a new S Corp). A 1099INT was sent to report 2024 interest received with the payments. Both partners are aware that the money has come in and partner #1 deposited the funds, did not split it with partner #2. They discussed and partner #2 said it was fine as long as the tax burden was all on partner #1. (as a side note partner #1 paid the fee to have the 941s amended)

I will prepare the amended 2021 return and report the ERC and amended K-1s. Can I allocate it all to partner #1.? In the past it was always been 50/50.