BBA Partnerships Can File Amended 2018 and 2019 Tax Returns

The IRS is giving BBA partnerships the option to file an amended Form 1065 for 2018 and 2019 before September 30, 2020. The option, as provided in Revenue Procedure 2020-23, enables BBA partnerships to obtain any CARES Act benefits for which they are entitled.

Instead of filing an Administrative Adjustment Request (AAR), a BBA partnership that filed a 2018 or a 2019 Form 1065 before April 8, 2020, may file an amended Form 1065 for 2018 and/or 2019 before September 30, 2020. The amended Form 1065 may take into account tax changes brought about by the CARES Act as well as any other tax attributes to which the partnership is entitled.

The amended Form 1065 replaces any prior return (including any AAR) filed by the partnership for the taxable year for purposes of determining the partnership’s treatment of partnership-related items under IRC Section 6222.

The partners of the partnership will then be able to amend their own 2018 and/or 2019 tax returns.

A BBA partnership that wants to take advantage of the option to file an amended return must file a Form 1065 with the “Amended Return” box checked and furnish corresponding amended Schedules K-1 to each of its partners. The BBA partnership, in addition, must write “FILED PURSUANT TO REV PROC 2020-23” at the top of the amended return and on a statement attached to each amended Schedule K-1.

If a BBA partnership wishes to use the amended return option but is currently under examination for a taxable year beginning in 2018 or 2019, it must send written notice to the revenue agent coordinating the examination stating that the partnership seeks to use the amended return option. The partnership must send this notice prior to or contemporaneously with filing the amended return. The partnership must also provide the revenue agent with a copy of the amended return upon filing.

Finally, a BBA partnership that has previously filed an AAR should use the items as adjusted in the AAR, where applicable, in lieu of any reporting from the originally filed partnership return.

For additional information concerning Revenue Procedure 2020-23, contact a Weaver professional today. We’re here to help.

 © 2020