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IRS Provides Penalty Relief for Failure to Include “Negative Basis” Info on 2018 Partnership Returns

IRS Provides Penalty Relief for Failure to Include “Negative Basis” Info on 2018 Partnership Returns

For 2018 partnership tax returns due in 2019, partnerships must report negative “tax basis” capital accounts on the Schedules K-1 for their partners. Perhaps recognizing that it may be difficult for some partnerships to timely comply with these new requirements, the IRS issued Notice 2019-20 on March 7, 2019, providing penalty relief under certain circumstances, discussed below.

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