Regulation and Administration

This section includes information related to Regulations and Administration in Partnerships taxation.

Comments on Proposed Regulations Relating to the Application of Section 108(e)(8) to Partnerships and Their Partners
When a distressed partnership satisfies a debt by giving the creditor a partnership interest, the tax consequences, under these proposed regulations, may not be as you would expect in certain situations. In these comments, the AICPA has asked Treasury and IRS to reconsider some of their preliminary conclusions and to clarify others regarding how such a debt-for-equity exchange is taxed particularly when the debt was worth more than the partnership interest. Learn More>>

AICPA Comments on Proposed Regulations Intended to Clarify 704(c) Anti-Abuse Rule by Explicity Covering Enron-Like Transactions
The AICPA has asked for significant clarifications to the proposed anti-abuse rule for property contributed to a partnership.  What if use of the remedial method is not the only source of suspect tax reduction?  What if the only tax reductions are state and local taxes?  Why should minority partners be subject to these regulations? Are they likely to engage in abusive transactions?  These and other questions are posed as clarifying examples are requested. Learn More>>

Comments on Industry Resolution Program Issue 2008-110 Regarding Tax Issues Related to Technical Terminations of Publicly Traded Partnerships
Technical terminations of a partnership occur fairly frequently. When they do, revaluations of partnership property, depreciation reset, 754 book-ups and a whole host of tax consequences must be addressed. In the context of a publicly-traded partnership with sometimes thousands of partners and potentially multiple terminations throughout the year, the problems are exacerbated.  In this letter of recommendation, the AICPA is asking the IRS to simplify Form 1065 and Schedule K-1 reporting by permitting either the filing of a single Form 1065 for all short years involved, or at least the filing of a single Schedule K-1 per partner. We’ve also requested that the due date for both Forms 1065, if still required, or for the single Schedule K-1, if permitted, be the original due date (with extensions) based on the original calendar (or fiscal) yearend. Learn More>>

AICPA Members Comment on the Third Draft of 2008 Form 1065, Related Schedules and Draft Instructions
Members of the AICPA Partnership Taxation Technical Resource Panel have continued their dialogue with the IRS folks responsible for updating the 2008 Form 1065 series and have submitted comments on the third draft released by the IRS July 24, 2008, and on the first draft of the Form’s instructions.  Learn More>>

AICPA Members Comment on Second Draft of Form 1065 and Related Schedules
Members of the AICPA Partnership Taxation Technical Resource Panel submitted comments on the second draft of the 2008 Form 1065, released by the IRS May 2, 2008.  Learn More>>

AICPA Calls for K-1 Due Date of September 15

On January 24, 2008, AICPA urged the IRS to change extended due date for partnership returns from October 15 to September 15, reducing the maximum automatic extension to five months instead of the current six months. Learn More>>

AICPA Asks IRS to Withdraw Proposed Section 752 Regs on Disregarded Entities

AICPA asks the IRS to withdra the proposed section 752 regulations limiting partnership allocations of liabilities to a disregarded entity's net value. Learn More>>

AICPA Asks IRS to Apply "Anti-Mixing Bowl" Changes Prospectively Only

September 3, 2004. In this letter the AICPA offers comments to the IRS and Department of Treasury on Revenue Ruling 2004–43, which specifically addresses the application of sections 704(c)(1)(B) and 737 to the distribution of property by a partnership following an assets-over partnership merger. Learn More>>

AICPA Members Comment on Draft Form 1065

Members of the AICPA Partnership Taxation Technical Resource Panel submitted comments on the draft 2007 Form 1065 addressing proposed new requirements for reporting information on (1) direct and indirect ownership of tiered structures, (2) disguised sales, (3) mandatory basis adjustments, and (4) a number of other issues. Learn More>>