Tax Warrior Chronicles

New Partnership Tax Capital Reporting May Prove Problematic

Posted on Mon, Nov 23, 2020

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.

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IMPORTANT UPDATE – Form 1065 Reporting Partners’ Tax Capital

Posted on Wed, Dec 11, 2019

Last week, we reported an important change on Form 1065 requiring partnerships to report tax basis partners’ capital accounts starting with 2019 filings. Since many partnerships do not currently report or even track this information, the change could be extremely problematic. However, the IRS has slightly changed course, making the change a bit more palatable, but the over-arching challenge still remains.

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Significant Change in Reporting for Partnerships Ahead

Posted on Mon, Dec 02, 2019

By: Jonathan S. Kandel, CPA


Just when you thought all was calm, the IRS shook up the partnership tax world. The recently released IRS proposed 2019 instructions for Form 1065 highlight changes. Here is one proposed change we don’t think will go away:

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New Partnership K-1 Disclosure Requirement - The IRS's Threat and Partial Retreat… We Mean Relief!

Posted on Fri, Mar 08, 2019

By: Chris Catarino, CPA, MT and Joseph Criscuolo, CPA


Buried in the 2018 instructions to Form 1065, U.S. Return of Partnership Income, is a new reporting requirement with a whopping noncompliance penalty. The blow-back from practitioners on this sneaky new disclosure was so great the IRS issued penalty relief provisions this week… here's the scoop.

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