IRS Form: Final Instructions to Form 8978 on Partner Audit Liability (IRC §6266)

Revised instructions to Form 8978, Partner’s Additional Reporting Year Tax, released January 4 with changes made to reflect updates on (1) how positive and negative adjustments received by partners on Forms 8986 should be reported on Form 8978 and its Schedule A; and (2) reporting an I.R.C. §199A qualified business income deduction on Form 8978 and its Schedule A. The form is used to compute additional reporting year tax, penalties and interest. Section 6226 allows a partnership to elect to push responsibility for payment down to the reviewed year partners. Instead of paying the imputed underpayment determined under §6221, ...