By: Chris Catarino, CPA, MT and Joseph Criscuolo, CPA, MT
On October 22, 2020, the IRS released draft instructions to Form 1065, U.S. Return of Partnership Income, for the 2020 tax year. The draft instructions provide additional clarity on the new tax capital reporting requirements partnerships will face this upcoming filing season. Partnerships that have not previously tracked partners' tax capital accounts, especially older partnerships, will face significant challenges complying with these new rules.
We previously blogged about this topic in March 2019, when the IRS first attempted to impose these new reporting requirements on 2019 partnership tax returns, but ultimately delayed theRead More