Deadline Approaching to Amend 2018 and 2019 Partnership Tax Returns

The deadline for partnerships, that are subject to the Bipartisan Budget Act of 2015 (BBA)’s centralized partnership audit procedures, to file an amended 2018 and/or 2019 Form 1065 is September 29, 2020. This allows partnerships to take into account tax changes brought about by the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act as well as any other tax attributes to which the partnership is entitled by law.

tax advisory cpaRelief for taxpayers holding their interests through partnerships was limited due to the mechanics of ‎the existing partnership audit rules and the inability of partnerships to file amended tax returns under ‎such rules. In Revenue Procedure 2020-23 (issued on April 9, 2020) the IRS provided guidance granting eligible partnerships the ability to file amended partnership ‎tax returns for tax years beginning in 2018 and 2019 so that they are able to take into account the ‎benefits provided in the CARES Act.‎

In order to take advantage of the option to file an amended tax return, an eligible partnership must ‎file a Form 1065 with the “Amended Return” box checked and furnish corresponding amended ‎Schedules K-1.

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