BREAKING TAX NEWS | IRS provides penalty relief for partnerships that fail to report negative tax basis capital accounts

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07 March 2019

BREAKING TAX NEWS | IRS provides penalty relief for partnerships that fail to report negative tax basis capital accounts

Because partnerships may be unable to comply with the new requirement to report negative tax basis capital accounts on Schedules K-1, the IRS has announced (Notice 2019-20) that it will waive penalties under Sections 6722 and 6698 if a partnership fails to report that information for the tax year that began after December 31, 2017, but before January 1, 2019. (For more information on the new reporting requirement, see Tax Alert 2019-0396.) A Tax Alert is forthcoming.

Document ID: 2019-9004

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