Question: We Count, LLC filed its 2018 Form 1065, U.S. Return of Partnership Income, by April 15, 2019, and did not elect out of the centralized partnership audit regime. In September 2020, it discovered an error on the 2018 Form 1065 and needs to file an amended return, which it would like to e-file. Which form does We Count file?
Answer: Partnerships subject to the centralized partnership audit regime are referred to as BBA partnerships. In general, if a partnership wants to electronically file an amended partnership return, it must file Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request, to request an administrative adjustment in the amount of one or more partnership-related items.
However, for tax years beginning in 2018 or 2019, BBA partnerships that filed Form 1065 and furnished all required Schedules K-1 prior to the issuance of Rev. Proc. 2020-23 (April 8, 2020) may amend those returns by filing Form 1065, checking the “Amended return” box and writing “Filed Pursuant to Rev. Proc. 2020-23” at the top prior, to Sept. 30, 2020. Partnerships must also furnish amended Schedules K-1 with the same notation on a statement attached to each Schedule K-1.
This relief allows partnerships and their partners to benefit from the provisions of the CARES Act without having to wait to file administrative adjustment requests (AARs) for the current year, which would otherwise be required under §6227. When a partnership files an AAR, partners only benefit from the changes when they file their current year’s tax return, generally 2021 for changes made in 2020. This process would significantly delay the relief provided in the CARES Act, which is intended to apply to the affected taxable years and provide an immediate benefit to taxpayers. (https://www.irs.gov/pub/irs-drop/rp-20-23.pdf)
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