This is the Schedule of Adjustments page for the Violet Partnership for the tax year ended December 31, 2008.The following fields are completed:Name of Partnership: Violet PartnershipEIN: XY-0123456Tax Year Ended: 12/31/2008 Details of Adjustments to Ordinary Income-Part I: Partnership Items and Partnership Level Determinations as to Penalties, Additions to Tax, and Additional Amounts: Rent Expense is decreased by $15,500Total Adjustments to Ordinary Income: $15,500Other adjustments-Portfolio Income-Interest Income is increased by $1,500,000 from $3,500,000 to $5,000,000Other adjustments-Capital Contributions Made During 2008 is decreased by $845,000 from $845,000 to zeroThe remarks section contains the following text:It is determined that the $1,000,000.00 note from Violet Partnership to Rose Bank is recharacterized from recourse to nonrecourse. Negligence penalty will be assessed. Partner-level defenses to the negligence penalty may be raised in a refund forum after the penalty is assessed unless these defenses are waived in Part II.The remarks section contains Part II, Affected Items, with the following text:Therefore, $ (fill in blank) of the loss is deductible on the return of partner (fill in blank) because the partner has $ (fill in blank) at-risk under IRC 465.This agreement waives the partner-level defenses to negligence penalty.At the bottom of the page are additional instructions as follows:Note: Send each partner the same Part I: Partnership Items and Partnership Level Determinations as to Penalties. Additions to Tax and Additional Amounts as every other partner. However, in the example instance, the Part II: Affected Items information is private partner information. Each partner's Part II information should be individual. The information in Part II can be the same for all partners if it can be generic and not give specific information to one partner about another partner.