Distributing profit in LLC differently then in previous years

Question

I have the following question: an LLC has two members (both active since they spend more then 500 hours a year in it).

During the past years the profit was divided 50/50 but this year due to certain circumstances one member is not able to devote the same number of hours. They agreed to split the profit 20/80. Now, how do they document it (minutes of meeting probably, right???), and do they need to notify the IRS and state about the decision?

Thank you

Answer 1

Record the decision in your minutes and report the distribution on the K-1 forms you submit to the IRS.

Answer 2

Its is changed on the K-1 of each of the partners.