Page 281 - BusinessStructures & Forms

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Domestic partnerships treated as aggregates for purposes of Payroll credit for COVID-related paid sick leave or family
sections 951, 951A, and 956(a). Final regulations announced in leave. Under the Families First Coronavirus Response Act
Treasury Decision 9960 treat domestic partnerships as aggregates (FFCRA), as amended, and the American Rescue Plan Act of 2021
of their partners for purposes of sections 951, 951A, and 956(a), and (the ARP), an eligible employer can take a credit against payroll
any provision that specifically applies by reference to any of those taxes owed for amounts paid for qualified sick leave or family leave if
sections, for tax years of foreign corporations beginning on or after incurred during the allowed period, which starts on April 1, 2020,
January 25, 2022, and for tax years of U.S. persons in which or with and ends September 30, 2021. There is no double tax benefit
which such tax years of foreign corporations end. Domestic allowed and the amounts claimed are reportable as income on
partnerships may apply the final regulations to tax years of foreign line 7. See Line 7. Other Income (Loss), later.
corporations beginning after December 31, 2017, and to tax years of Temporary allowance of 100% business meals. A partnership is
the domestic partnership in which or with which such tax years of the allowed a 100% deduction for certain business meals paid or
foreign corporations end, provided certain consistency requirements
are met. See What's New in 2022 Partnership Instructions for incurred after 2020 and before 2023. See Travel, meals, and
entertainment, later.
Schedules K-2 and K-3 (Form 1065).
IRA partner disclosure. For IRA partners, the partnership reports Box 20, code AG. Gross receipts for section 448(c)(2).
the EIN of the IRA's custodian in item E on the partner's Partnerships and partners must determine whether they are subject
to certain accounting methods and to section 163(j) based on their
Schedule K-1 (Form 1065). If the partnership reports unrelated gross receipts. For tax years ending after December 30, 2020,
business taxable income to an IRA partner on line 20, code V, the partnerships with current year gross receipts greater than $5 million
partnership must report the IRA's EIN on line 20, code AH. See
Items E and F and Other information (code AH), later. are required to report their current year gross receipts to partners.
For tax years ending after December 30, 2021, a partnership that
Reminders has current year gross receipts greater than $5 million will be
required to report gross receipts to partners for the 3 immediately
Schedules K-2 and K-3 (Form 1065). Schedules K-2 and K-3 preceding tax years as well as gross receipts for the current year.
replaced prior lines 16 and 20 for certain international codes on Partnerships whose current year gross receipts are less than or
Schedules K and K-1. They were designed to provide greater clarity equal to $5 million may also use this code to report gross receipts.
for partners on how to compute their U.S. income tax liability with
respect to items of international tax relevance, including claiming Photographs of Missing Children
deductions and credits. The Internal Revenue Service is a proud partner with the National
Schedules K and K-1 (Form 1065). Line 21 replaced line 16p for Center for Missing & Exploited Children® (NCMEC). Photographs of
foreign taxes paid or accrued with respect to basis adjustments and missing children selected by the Center may appear in instructions
income reconciliation. on pages that would otherwise be blank. You can help bring these
Note. Foreign taxes paid or accrued must also be reported on children home by looking at the photographs and calling
1-800-THE-LOST (1-800-843-5678) if you recognize a child.
Schedules K-2 and K-3 for foreign tax credit purposes.
Section 743(b) adjustment. Code U on line 20c of Schedules K How To Get Tax Help
and K-1 is used to report the total remaining section 743(b) If you have questions about a tax issue; need help preparing your
adjustment for applicable partners. This was reported in previous tax return; or want to download free publications, forms, or
years on line 20, code AH. instructions, go to IRS.gov to find resources that can help you right
Section 1061 reporting. Section 1061 recharacterizes certain away.
long-term capital gains of a partner that holds one or more Online tax information in other languages. You can find
applicable partnership interests as short-term capital gains. An information on IRS.gov/MyLanguage if English isn’t your native
applicable partnership interest is an interest in a partnership that is language.
transferred to or held by a taxpayer, directly or indirectly, in
connection with the performance of substantial services by the Free Over-the-Phone Interpreter (OPI) Service. The IRS is
committed to serving our multilingual customers by offering OPI
taxpayer or any other related person, in an applicable trade or
business. See Pub. 541, Partnerships, for pass-through entity and services. The OPI Service is a federally funded program and is
owner-taxpayer filing and reporting requirements. available at Taxpayer Assistance Centers (TACs), other IRS offices,
and every VITA/TCE return site. The OPI Service is accessible in
Paycheck Protection Program (PPP) loans. Partnerships report more than 350 languages.
certain information related to PPP loans. The forgiveness of a PPP
loan creates tax-exempt income which affects each partner’s basis Accessibility Helpline available for taxpayers with disabilities.
Taxpayers who need information about accessibility services can
in the partnership. A partnership can treat tax-exempt income call 833-690-0598. The Accessibility Helpline can answer questions
resulting from the forgiveness of a PPP loan as received or accrued
(1) as, and to the extent that, eligible expenses are paid or incurred; related to current and future accessibility products and services
(2) when the partnership applies for forgiveness of the PPP loan; or available in alternative media formats (for example, braille, large
print, audio, etc.). The Accessibility Helpline does not have access
(3) when forgiveness of the PPP loan is granted. See Schedule B,
Question 6; Schedules K and K-1, lines 11 and 18b; Schedule M-1; to your IRS account. For help with tax law, refunds, or
and Schedule M-3, later, for PPP reporting instructions. For account-related issues, go to IRS.gov/LetUsHelp.
additional details about the timing of tax-exempt income related to The Taxpayer Advocate Service (TAS) Is Here
PPP loans, see Rev. Proc. 2021-48, 2021-49 I.R.B. 835.
PPP loans that aren't properly forgiven because of a To Help You
! taxpayer's misrepresentation or omission are considered What Is TAS?
CAUTION taxable income to the taxpayer.
TAS is an independent organization within the IRS that helps
Tax shelter election. Final regulations issued January 5, 2021, taxpayers and protects taxpayer rights. Their job is to ensure that
under section 448 permit a taxpayer to make an annual election to every taxpayer is treated fairly and that you know and understand
use its allocations made in the immediately preceding tax year, your rights under the Taxpayer Bill of Rights.
instead of using the current tax year’s allocation, to determine
whether the taxpayer is a syndicate under section 448(d)(3) for the
current tax year. See Tax shelter election, later.

-2- Instructions for Form 1065 (2022)