TXCPA Committee Issues Urgent Request to Commissioner Rettig for Partnership Tax Basis Reporting Relief

In light of burdensome changes and the ongoing pandemic, TXCPA’s Federal Tax Policy Committee asked the IRS to immediately reconsider, eliminate or delay the requirement and procedures for reporting partners’ capital accounts on a tax basis as stated in the IRS Form 1065 instructions.

The committee also requested additional guidance as to what constitutes “ordinary and prudent business care” for IRS Notice 2021-13 purposes, expanded penalty relief beyond the current notice provision and a special rule to allow amending 2020 CPAR returns within the three-year period of assessments.

Review letter:

https://www.tx.cpa/docs/default-source/comment-letters/federal-tax-policy/2021/partnership-tax-basis-reporting-feb-2021.pdf?sfvrsn=aa1d8b1_2