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February 24, 2021

IRS issues instructions for BBA partnerships reporting push-out adjustments to partners

The IRS has released instructions on a new procedure partnerships must use when electing to push out adjustments to their partners after an audit under the centralized audit regime of the Bipartisan Budget Act of 2015 (BBA).

Audited BBA partnerships and their pass-through partners must electronically submit to the IRS forms for (1) modifying imputed underpayments and (2) electing to push out underlying adjustments of imputed payments. The new instructions apply to the forms for a BBA audit, including Form 8986, Partner's Share of Adjustments(s) to Partnership-Related Item(s)(Required Under Sections 6226 and 6227).

The instructions include all the details necessary for electronically submitting the forms, such as how to download the forms, the correct file formats and signature requirements.

Partnership representative or designated individual and pass-through partners must submit forms

To submit the forms or request push-out tracking numbers (push-out forms require unique outgoing tracking numbers for each package submitted), at least two people from the audited BBA partnership and its pass-through partners must sign up for a Secure Access account, if they do not already have one, as follows:

Audited BBA partnership: (1) The partnership representative (or designated individual) and (2) one other person representing the audited BBA partnership.

Pass-through partner of an audited BBA partnership: (1) A person representing the pass-through partner and (2) a person authorized to sign the pass-through partner's information return (if the pass-through partner is a BBA partnership, the authorized person should be its partnership representative or designated individual for the reviewed year).

Using the Secure Access account, the "Partnership BBA Form Filer" then applies for a Partnership BBA Transmitter Control Code (PBBA TCC) (see the IRS webpage for additional guidance on the requirements for secure access codes). The IRS instructions include additional details on the required filing procedures the partnership must follow.


To implement a valid "push-out" election at the conclusion of an audit of a partnership under the BBA Centralized Partnership Audit regime, the partnership representative or designated individual now has the added responsibility of obtaining a Secure Access account to be able to file the required push-out statements (Forms 8986) to the IRS. Additionally, any pass-through partner must also use the IRS Secure Access system to continue to "push out" the audit adjustments to its partners. Not following the proper procedures could result in either an invalid "push-out" election or the unintended imposition of an imputed underpayment at the partnership level. These new procedures increase the administrative burden on partnerships subject to the BBA Centralized Partnership audit regime.


Contact Information
For additional information concerning this Alert, please contact:
Tax Controversy Practice
   • Alice Harbutte (
   • Bryon Christensen (
   • Kirsten Wielobob (
   • Melissa Wiley (