IRS Extends Partnerships Penalty Relief on Certain Statements

The IRS won’t impose penalties for certain partnerships that fail to furnish correct payee statements in 2024.

IRS Notice 2025-2, released Friday, gives relief if a partnership with unrealized receivables or inventory items fails to furnish Part IV of Form 8308, Report of a Sale or Exchange of Certain partnership Interests, to the transferor and transferee in a §751(a) exchange in 2024.

The notice generally extends the same relief the IRS provided last year.

• The notice explains what partnerships must do in order to avoid penalties.
• IRS and Treasury Department allowed for the relief from penalties because of ...