Corrections to the 2019 Instructions for Form 1065

 

If you viewed the 2019 Instructions for Form 1065 before February 19, 2020, please note the following updates and corrections that have been made to the instructions, which re-posted on February 19, 2020.

  1. On page 1, information about changes made by the Taxpayer Certainty and Disaster Relief Act of 2019 has been added, including the extension of the deduction for energy efficient commercial buildings; the deduction for film, television, and theatrical production expenses; and the employee retention credit.
     
  2. On page 1, information has been added about new item K at the top of Form 1065, which provides checkboxes to indicate if the partnership (1) aggregated activities for section 465 at-risk purposes, or (2) grouped activities for section 469 passive activity purposes.
     
  3. On page 27, a clarification has been made that publicly traded partnerships don't need to provide the information requested in Question 27, Schedule B.
     
  4. On page 29, clarifying information has been added to paragraphs for Item H2. Disregarded Entity (DE) and Item I1. What Type of Entity Is This Partner?
     
  5. On page 30, the first sentence of the third paragraph under Item L. Partner's Capital Account Analysis, has been revised to clarify that if the partnership reports tax basis capital account balances to its partners in item L, no information on this is needed on line 20, code AH.
     
  6. On pages 34 and 37, the following paragraphs have been reworded and clarified: Section 743(b) positive income adjustments (code F) and Section 743(b) negative income adjustments (code V). On page 52, the text describing the statements to be provided regarding section 743(b) basis adjustment has been revised in the first bullet point under Other information (code AH).
     
  7. On pages 38 and 39, references were incorrectly made to line 4a, guaranteed payments for services, of Schedule K (Form 1065). These incorrect references were made in the paragraph for Line 4a on page 38, and on line 4a of the worksheet on page 39. The references should have been to line 4c of Schedule K (Form 1065), total guaranteed payments, and have been corrected.
     
  8. On page 50, the top row of Statement C—QBI Pass-Through Entity Reporting—Patrons of Specified Agricultural and Horticultural Cooperatives, had spaces for the name and employer identification number of a cooperative. This row should be left blank and has been deleted.
     
  9. On page 51, new examples have been added under Section 704(c) information (code AA).
     
  10. On page 54, the two paragraphs under Schedule M-2. Analysis of Partners' Capital Accounts have been revised and clarified.