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

by John Colvin and Cory Johnson | Mar 8, 2019 | Tax Advice, IRS Audits and Appeals, IRS Audit

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.