- Publication 541 - Introductory Material
- Whats New
- Withholding on foreign partner or firm.
- Fixed or determinable annual or periodical (FDAP) income.
- Withholding under the Foreign Investment in Real Property Tax Act (FIRPTA).
- Withholding on foreign partners effectively connected taxable income (ECTI).
- Withholding on foreign partners sale of a partnership interest.
- Withholding under the Foreign Account Tax Compliance Act (FATCA).
- Comments and suggestions.
- Ordering forms and publications.
- Tax questions.
- Useful Items - You may want to see:
- Publication 541 - Main Content
- Forming a Partnership
- Organizations Classified as Partnerships
- Organizations formed after 1996.
- Limited liability company (LLC).
- Organizations formed before 1997.
- Community property.
- Partnership Interests Created by Gift
- Partnership Interests Held in Connection With Performance of Services
- Business Owned and Operated by Spouses
- Qualified Joint Venture Election
- Partnership Agreement
- Organizations Classified as Partnerships
- Terminating a Partnership
- Exclusion From Partnership Rules
- Partnership Return (Form 1065)
- Partnership Distributions
- Effect on partner's basis.
- Effect on partnership.
- Certain distributions treated as a sale or exchange.
- Substantially appreciated inventory items.
- Partner's Gain or Loss
- Partner's Basis for Distributed Property
- Complete liquidation of partner's interest.
- Partner's holding period.
- Basis divided among properties.
- Allocating a basis increase.
- Allocating a basis decrease.
- Distributions before August 6, 1997.
- Partner's interest more than partnership basis.
- Special adjustment to basis.
- Mandatory adjustment.
- Required statement.
- Marketable securities.
- Transactions Between Partnership and Partners
- Payments by accrual basis partnership to cash basis partner.
- Guaranteed Payments
- Sale or Exchange of Property
- Contribution of Property
- Disguised sales.
- Form 8275 required.
- Contribution to partnership treated as investment company.
- Contribution to foreign partnership.
- Basis of contributed property.
- Allocations to account for built-in gain or loss.
- Distribution of contributed property to another partner.
- Disposition of certain contributed property.
- Contribution of Services
- Basis of Partner's Interest
- Interest acquired by gift, etc.
- Adjusted Basis
- Effect of Partnership Liabilities
- Disposition of Partner's Interest
- Abandoned or worthless partnership interest.
- Partnership election to adjust basis of partnership property.
- Sale, Exchange, or Other Transfer
- Payments for Unrealized Receivables and Inventory Items
- Unrealized receivables.
- Other items treated as unrealized receivables.
- Determining gain or loss.
- Inventory items.
- Notification required of partner.
- Information return required of partnership.
- Statement required of partner.
- Partner's disposition of distributed unrealized receivables or inventory items.
- Exception for inventory items held more than 5 years.
- Substituted basis property.
- Liquidation at Partner's Retirement or Death
- Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
- Bipartisan Budget Act of 2015 (BBA)
- Role of Partnership Representative
- Electing Out of the Centralized Partnership Audit Regime
- Amended Return
- How To Sign Documents on Behalf of the Partnership
- How To Get Tax Help
- Tax reform.
- Preparing and filing your tax return.
- Getting tax forms and publications.
- Access your online account (individual taxpayers only).
- Using direct deposit.
- Refund timing for returns claiming certain credits.
- Getting a transcript or copy of a return.
- Using online tools to help prepare your return.
- Resolving tax-related identity theft issues.
- Checking on the status of your refund.
- Making a tax payment.
- What if I cant pay now?
- Checking the status of an amended return.
- Understanding an IRS notice or letter.
- Contacting your local IRS office.
- Watching IRS videos.
- Getting tax information in other languages.
- The Taxpayer Advocate Service (TAS) Is Here To Help You
- Low Income Taxpayer Clinics (LITCs)
- Forming a Partnership
- Publication 541 - Additional Material
Partnership representative. Under the centralized partnership audit regime, partnerships are generally required to designate a partnership representative. See Role of Partnership Representative , later.
Electing out of the centralized partnership audit regime. A partnership can elect out of the centralized partnership audit regime for a tax year if the partnership is an eligible partnership that year. See Electing Out of the Centralized Partnership Audit Regime , later.
Business interest expense limitation. Public Law 115-97 amended section 163(j) to reflect a limitation on business interest expense. For tax years beginning after 2017, a business interest expense deduction may be limited for certain taxpayers. The Instructions for Form 8990, Limitation on Business Interest Expense Under Section 163(j), explain when a business interest expense deduction is limited, who is required to file Form 8990, and how certain businesses may elect out of the business interest expense limitation.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication provides supplemental federal income tax information for partnerships and partners. It supplements the information provided in the Instructions for Form 1065, U. S. Return of Partnership Income, and the Partner's Instructions for Schedule K-1 (Form 1065). Generally, a partnership doesn't pay tax on its income but "passes through" any profits or losses to its partners. Partners must include partnership items on their tax returns.
For a discussion of business expenses a partnership can deduct, see Pub. 535, Business Expenses. Members of oil and gas partnerships should read about the deduction for depletion in chapter 9 of that publication.
For tax years beginning before 2018, certain partnerships must have a tax matters partner (TMP) who is also a general partner.
The TMP has been replaced with partnership representative for partnership tax years beginning after 2017. Each partnership must designate a partnership representative unless the partnership has made a valid election out of the centralized partnership audit regime. See Designated partnership representative in the Form 1065 instructions and Regulations section 301.6223-1.
334 Tax Guide for Small Business
505 Tax Withholding and Estimated Tax
535 Business Expenses
537 Installment Sales
538 Accounting Periods and Methods
544 Sales and Other Dispositions of Assets
551 Basis of Assets
925 Passive Activity and At-Risk Rules
946 How To Depreciate Property
See How To Get Tax Help at the end of this publication for information about getting publications and forms.
The following sections contain general information about partnerships.
An unincorporated organization with two or more members is generally classified as a partnership for federal tax purposes if its members carry on a trade, business, financial operation, or venture and divide its profits. However, a joint undertaking merely to share expenses is not a partnership. For example, co-ownership of property maintained and rented or leased is not a partnership unless the co-owners provide services to the tenants.
The rules you must use to determine whether an organization is classified as a partnership changed for organizations formed after 1996.
A domestic LLC with at least two members that doesn't file Form 8832 is classified as a partnership for federal income tax purposes.
For tax years beginning after 2017, to get long-term capital gain treatment for certain gains attributable to "applicable partnership interests," the required asset holding period is greater than 3 years. Under section 1061 of the Internal Revenue Code, the amount of the taxpayer’s net long-term capital gain with respect to applicable partnership interests for the tax year that exceeds the amount of such gain figured as if a 3-year (not 1-year) holding period applies is treated as short-term capital gain. Net long-term capital gain is the net of long-term capital gain over long-term capital loss.
Applicable partnership interest.
An applicable partnership interest is any interest in a partnership that, directly or indirectly, is transferred to (or is held by) the taxpayer in connection with the performance of substantial services by the taxpayer, or any other related person, in any "applicable trade or business." The special recharacterization rule applies to:
Capital gains recognized by a partner from the sale or exchange of an applicable partnership interest under Internal Revenue Code sections 741(a) and 731(a); and
Capital gains recognized by a partnership, allocated to a partner with respect to an applicable partnership interest.
If spouses carry on a business together and share in the profits and losses, they may be partners whether or not they have a formal partnership agreement. If so, they should report income or loss from the business on Form 1065. They should not report the income on a Schedule C (Form 1040) in the name of one spouse as a sole proprietor. However, the spouses can elect not to treat the joint venture as a partnership by making a qualified joint venture election.
A "qualified joint venture," whose only members are spouses filing a joint return, can elect not to be treated as a partnership for federal tax purposes. A qualified joint venture conducts a trade or business where the only members of the joint venture are spouses filing jointly; both spouses elect not to be treated as a partnership; both spouses materially participate in the trade or business (see Passive Activity Limitations in the Instructions for Form 1065 for a definition of material participation); and the business is co-owned by both spouses and is not held in the name of a state law entity such as a partnership or LLC.
Under this election, a qualified joint venture conducted by spouses who file a joint return is not treated as a partnership for federal tax purposes and therefore doesn't have a Form 1065 filing requirement. All items of income, gain, deduction, loss, and credit are divided between the spouses based on their respective interests in the venture. Each spouse takes into account his or her respective share of these items as a sole proprietor. Each spouse would account for his or her respective share on the appropriate form, such as Schedule C (Form 1040). For purposes of determining net earnings from self-employment, each spouse's share of income or loss from a qualified joint venture is taken into account just as it is for federal income tax purposes (that is, based on their respective interests in the venture).
If the spouses do not make the election to treat their respective interests in the joint venture as sole proprietorships, each spouse should carry his or her share of the partnership income or loss from Schedule K-1 (Form 1065) to their joint or separate Form(s) 1040. Each spouse should include his or her respective share of self-employment income on a separate Schedule SE (Form 1040), Self-Employment Tax.
This generally doesn't increase the total tax on the return, but it does give each spouse credit for social security earnings on which retirement benefits are based. However, this may not be true if either spouse exceeds the social security tax limitation.
For more information on qualified joint ventures, go to IRS.gov/QJV.
The partnership agreement includes the original agreement and any modifications. The modifications must be agreed to by all partners or adopted in any other manner provided by the partnership agreement. The agreement or modifications can be oral or written.
Partners can modify the partnership agreement for a particular tax year after the close of the year but not later than the date for filing the partnership return for that year. This filing date doesn't include any extension of time.
If the partnership agreement or any modification is silent on any matter, the provisions of local law are treated as part of the agreement.
A partnership terminates when all its operations are discontinued and no part of any business, financial operation, or venture is continued by any of its partners in a partnership.
See section 1.708-1(b)(1) of the regulations for more information on the termination of a partnership. For special rules that apply to a merger, consolidation, or division of a partnership, see sections 1.708-1(c) and 1.708-1(d) of the regulations.
Certain partnerships with more than 100 partners are required to file Form 1065, Schedules K-1, and related forms and schedules electronically. Other partnerships generally have the option to file electronically. For details about electronic filing, see the Instructions for Form 1065.
Certain partnerships that do not actively conduct a business can choose to be completely or partially excluded from being treated as partnerships for federal income tax purposes. All the partners must agree to make the choice, and the partners must be able to figure their own taxable income without figuring the partnership's income. However, the partners are not exempt from the rule that limits a partner's distributive share of partnership loss to the adjusted basis of the partner's partnership interest. Nor are they exempt from the requirement of a business purpose for adopting a tax year for the partnership that differs from its required tax year.
Every partnership that engages in a trade or business or has gross income must file an information return on Form 1065 showing its income, deductions, and other required information. The partnership return must show the names and addresses of each partner and each partner's distributive share of taxable income. The return must be signed by a partner. If an LLC is treated as a partnership, it must file Form 1065 and one of its members must sign the return.
A partnership is not considered to engage in a trade or business, and is not required to file a Form 1065, for any tax year in which it neither receives income nor pays or incurs any expenses treated as deductions or credits for federal income tax purposes.
See the Instructions for Form 1065 for more information about who must file Form 1065.
Partnership distributions include the following.
A withdrawal by a partner in anticipation of the current year's earnings.
A distribution of the current year's or prior years' earnings not needed for working capital.
A complete or partial liquidation of a partner's interest.
A distribution to all partners in a complete liquidation of the partnership.
A partnership distribution is not taken into account in determining the partner's distributive share of partnership income or loss. If any gain or loss from the distribution is recognized by the partner, it must be reported on his or her return for the tax year in which the distribution is received. Money or property withdrawn by a partner in anticipation of the current year's earnings is treated as a distribution received on the last day of the partnership's tax year.
A partner generally recognizes gain on a partnership distribution only to the extent any money (and marketable securities treated as money) included in the distribution exceeds the adjusted basis of the partner's interest in the partnership. Any gain recognized is generally treated as capital gain from the sale of the partnership interest on the date of the distribution. If partnership property (other than marketable securities treated as money) is distributed to a partner, he or she generally doesn't recognize any gain until the sale or other disposition of the property.
For exceptions to these rules, see Distribution of partner's debt and Net precontribution gain , later. Also, see Payments for Unrealized Receivables and Inventory Items under Disposition of Partner's Interest , later.
The adjusted basis of Jo's partnership interest is $14,000. She receives a distribution of $8,000 cash and land that has an adjusted basis of $2,000 and a fair market value of $3,000. Because the cash received doesn't exceed the basis of her partnership interest, Jo doesn't recognize any gain on the distribution. Any gain on the land will be recognized when she sells or otherwise disposes of it. The distribution decreases the adjusted basis of Jo's partnership interest to $4,000 [$14,000 − ($8,000 + $2,000)].
For these rules, the term "money" includes marketable securities treated as money, as discussed earlier under Marketable securities treated as money .
Unless there is a complete liquidation of a partner's interest, the basis of property (other than money) distributed to the partner by a partnership is its adjusted basis to the partnership immediately before the distribution. However, the basis of the property to the partner cannot be more than the adjusted basis of his or her interest in the partnership reduced by any money received in the same transaction.
The adjusted basis of Emily's partnership interest is $30,000. She receives a distribution of property that has an adjusted basis of $20,000 to the partnership and $4,000 in cash. Her basis for the property is $20,000.
The adjusted basis of Steve's partnership interest is $10,000. He receives a distribution of $4,000 cash and property that has an adjusted basis to the partnership of $8,000. His basis for the distributed property is limited to $6,000 ($10,000 − $4,000, the cash he receives).
Eun's basis in her partnership interest is $55,000. In a distribution in liquidation of her entire interest, she receives properties A and B, neither of which is inventory or unrealized receivables. Property A has an adjusted basis to the partnership of $5,000 and a fair market value of $40,000. Property B has an adjusted basis to the partnership of $10,000 and a fair market value of $10,000.
To figure her basis in each property, Eun first assigns bases of $5,000 to property A and $10,000 to property B (their adjusted bases to the partnership). This leaves a $40,000 basis increase (the $55,000 allocable basis minus the $15,000 total of the assigned bases). She first allocates $35,000 to property A (its unrealized appreciation). The remaining $5,000 is allocated between the properties based on their fair market values. $4,000 ($40,000/$50,000) is allocated to property A and $1,000 ($10,000/$50,000) is allocated to property B. Eun's basis in property A is $44,000 ($5,000 + $35,000 + $4,000) and her basis in property B is $11,000 ($10,000 + $1,000).
Armando's basis in his partnership interest is $20,000. In a distribution in liquidation of his entire interest, he receives properties C and D, neither of which is inventory or unrealized receivables. Property C has an adjusted basis to the partnership of $15,000 and a fair market value of $15,000. Property D has an adjusted basis to the partnership of $15,000 and a fair market value of $5,000.
To figure his basis in each property, Armando first assigns bases of $15,000 to property C and $15,000 to property D (their adjusted bases to the partnership). This leaves a $10,000 basis decrease (the $30,000 total of the assigned bases minus the $20,000 allocable basis). He allocates the entire $10,000 to property D (its unrealized depreciation). Armando's basis in property C is $15,000 and his basis in property D is $5,000 ($15,000 − $10,000).
For certain transactions between a partner and his or her partnership, the partner is treated as not being a member of the partnership. These transactions include the following.
Performing services for, or transferring property to, a partnership if:
There is a related allocation and distribution to a partner; and
The entire transaction, when viewed together, is properly characterized as occurring between the partnership and a partner not acting in the capacity of a partner.
Transferring money or other property to a partnership if:
There is a related transfer of money or other property by the partnership to the contributing partner or another partner, and
The transfers together are properly characterized as a sale or exchange of property.
Guaranteed payments are those made by a partnership to a partner that are determined without regard to the partnership's income. A partnership treats guaranteed payments for services, or for the use of capital, as if they were made to a person who is not a partner. This treatment is for purposes of determining gross income and deductible business expenses only. For other tax purposes, guaranteed payments are treated as a partner's distributive share of ordinary income. Guaranteed payments are not subject to income tax withholding.
The partnership generally deducts guaranteed payments on Form 1065, line 10, as a business expense. They are also listed on Schedules K and K-1 of the partnership return. The individual partner reports guaranteed payments on Schedule E (Form 1040) as ordinary income, along with his or her distributive share of the partnership's other ordinary income.
Guaranteed payments made to partners for organizing the partnership or syndicating interests in the partnership are capital expenses. Generally, organizational and syndication expenses are not deductible by the partnership. However, a partnership can elect to deduct a portion of its organizational expenses and amortize the remaining expenses (see Business start-up and organizational costs in the Instructions for Form 1065). Organizational expenses (if the election is not made) and syndication expenses paid to partners must be reported on the partners' Schedules K-1 as guaranteed payments.
Special rules apply to a sale or exchange of property between a partnership and certain persons.
Usually, neither the partner nor the partnership recognizes a gain or loss when property is contributed to the partnership in exchange for a partnership interest. This applies whether a partnership is being formed or is already operating. The partnership's holding period for the property includes the partner's holding period.
The contribution of limited partnership interests in one partnership for limited partnership interests in another partnership qualifies as a tax-free contribution of property to the second partnership if the transaction is made for business purposes. The exchange is not subject to the rules explained later under Disposition of Partner's Interest .
The basis of a partnership interest is the money plus the adjusted basis of any property the partner contributed. If the partner must recognize gain as a result of the contribution, this gain is included in the basis of his or her interest. Any increase in a partner's individual liabilities because of an assumption of partnership liabilities is considered a contribution of money to the partnership by the partner.
There is a worksheet for adjusting the basis of a partner's interest in the partnership in the Partner's Instructions for Schedule K-1 (Form 1065).
The basis of an interest in a partnership is increased or decreased by certain items.
A partner's basis in a partnership interest includes the partner's share of a partnership liability only if, and to the extent that, the liability:
Creates or increases the partnership's basis in any of its assets;
Gives rise to a current deduction to the partnership; or
Is a nondeductible, noncapital expense of the partnership.
The term "assets" in (1) includes capitalized items allocable to future periods, such as organization expenses.
A partner's share of accrued but unpaid expenses or accounts payable of a cash basis partnership are not included in the adjusted basis of the partner's interest in the partnership.
The following discussions explain the treatment of gain or loss from the disposition of an interest in a partnership.
The sale or exchange of a partner's interest in a partnership usually results in capital gain or loss. However, see Payments for Unrealized Receivables and Inventory Items , later, for certain exceptions. Gain or loss is the difference between the amount realized and the adjusted basis of the partner's interest in the partnership. If the selling partner is relieved of any partnership liabilities, that partner must include the liability relief as part of the amount realized for his or her interest.
Kumar became a limited partner in the ABC Partnership by contributing $10,000 in cash on the formation of the partnership. The adjusted basis of his partnership interest at the end of the current year is $20,000, which includes his $15,000 share of partnership liabilities. The partnership has no unrealized receivables or inventory items. Kumar sells his interest in the partnership for $10,000 in cash. He had been paid his share of the partnership income for the tax year.
Kumar realizes $25,000 from the sale of his partnership interest ($10,000 cash payment + $15,000 liability relief). He reports $5,000 ($25,000 realized − $20,000 basis) as a capital gain.
The facts are the same as in Example 1, except that Kumar withdraws from the partnership when the adjusted basis of his interest in the partnership is zero. He is considered to have received a distribution of $15,000, his relief of liability. He reports a capital gain of $15,000.
If a partner receives money or property in exchange for any part of a partnership interest, the amount due to his or her share of the partnership's unrealized receivables or inventory items results in ordinary income or loss. This amount is treated as if it were received for the sale or exchange of property that is not a capital asset.
This treatment applies to the unrealized receivables part of payments to a retiring partner or successor in interest of a deceased partner only if that part is not treated as paid in exchange for partnership property. See Liquidation at Partner's Retirement or Death , later.
Oscar, a distributee partner, received his share of accounts receivable when his law firm dissolved. The partnership used the cash method of accounting, so the receivables had a basis of zero. If Oscar later collects the receivables or sells them, the amount he receives will be ordinary income.
Payments made by the partnership to a retiring partner or successor in interest of a deceased partner in return for the partner's entire interest in the partnership may have to be allocated between payments in liquidation of the partner's interest in partnership property and other payments. The partnership's payments include an assumption of the partner's share of partnership liabilities treated as a distribution of money.
For income tax purposes, a retiring partner or successor in interest of a deceased partner is treated as a partner until his or her interest in the partnership has been completely liquidated.
The TEFRA partnership audit procedures were repealed and do not apply to tax years beginning after 2017. The Bipartisan Budget Act of 2015 (BBA) is effective for partnership tax years beginning after 2017.
TEFRA is the common acronym used for a set of consolidated examination, processing, and judicial procedures which determine the tax treatment of partnership items at the partnership level for partnerships and limited liability companies (LLCs) that file as partnerships. TEFRA created the unified partnership audit and litigation procedures (TEFRA partnership procedures) of Internal Revenue Code sections 6221 through 6234 (prior to the amendments by BBA). For additional information on TEFRA partnership procedures, see the January 2016 revision of Pub. 541.
The BBA created a new centralized partnership audit regime effective for partnership tax years beginning after 2017. The new regime replaces the consolidated audit proceedings under TEFRA and the electing large partnership provisions. The new audit regime applies to all partnerships unless the partnership is an eligible partnership and elects out by making a valid election. See the Instructions for Form 1065.
Under the centralized partnership audit regime, partnerships are required to designate a partnership representative. The partnership representative will have the sole authority to act on behalf of the partnership under the centralized partnership audit regime. The designated partnership representative is a partner or other person with substantial presence in the United States. If the designated partnership representative is an entity, the partnership must also appoint a designated individual to act on behalf of the entity partnership representative. The partnership must include information regarding the partnership representative and designated individual (if applicable) on Form 1065, Schedule B. For more information, see the Instructions for Form 1065.
A partnership can elect out of the centralized partnership audit regime for a tax year if the partnership is an eligible partnership that year. A partnership is an eligible partnership for a tax year if it has 100 or fewer eligible partners. A partner is an eligible partner if it is an individual, C corporation, foreign entity that would be treated as a C corporation if it was domestic, S corporation, or an estate of a deceased partner. The determination as to whether the partnership has 100 or fewer partners is made by adding the number of Schedules K-1 required to be issued by the partnership to the number of Schedules K-1 required to be issued by any partner that is an S corporation to its shareholders for the tax year of the S corporation ending with or within the partnership tax year. A partnership is not an eligible partnership if it is required to issue a Schedule K-1 to any of the following partners.
A foreign entity that would not be treated as a C corporation were it a domestic entity.
A disregarded entity described in Regulations section 301.7701-2(c)(2)(i).
An estate of an individual other than a deceased partner.
Any person that holds an interest in the partnership on behalf of another person. See the Instructions for Form 1065 if electing out of the centralized partnership audit regime.
An annual election out of the centralized partnership audit regime must be made on the eligible partnership’s timely filed return, including extensions, for the tax year to which the election applies. The election is made by including the following information on Schedule B-2 (Form 1065) and filing with the tax return.
The name of each partner.
The taxpayer identification number (TIN) of each partner.
The federal tax classification for each partner.
If an S corporation is a partner, provide the names, TINs, and federal tax classification of any shareholder of the S corporation for the tax year of the S corporation ending with or within the partnership’s tax year.
This annual election once made may not be revoked without the consent of the IRS. A partnership that elects out of the centralized partnership audit regime must notify each of its partners of the election within 30 days of making the election. By making the election out of the centralized partnership audit regime, you are affirming that all of the partners in the partnership meet the eligibility requirements under section 6221(b)(1)(C) of the Internal Revenue Code and you have provided all of the required information with the Form 1065.
Rather than filing an amended return, a partnership that is subject to the centralized partnership audit regime must file either Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), or Form 1065X, Amended Return or Administrative Adjustment Request (AAR), to request an administrative adjustment for an amount of one or more partnership-related items. The Form 8082 must be used if filing electronically.
How To Sign Documents on Behalf of the Partnership
The following are examples of how a partnership representative (PR) should sign documents on behalf of the partnership. The manner in which the PR signs depends on whether the PR is an entity or an individual. If the PR is an entity, the designated individual (DI) signs in his or her capacity to act on behalf of that entity partnership representative.
|Designated Partnership Representative (PR)||Signature as Partnership Representative (PR)||Example|
|Individual||Individual's signature||John Smith, PR|
|Entity||Designated individual’s (DI) signature||Entity Name, PR, by John Smith, DI|
If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away.
Getting answers to your tax questions. On IRS.gov, get answers to your tax questions anytime, anywhere.
Go to IRS.gov/Help for a variety of tools that will help you get answers to some of the most common tax questions.
Go to IRS.gov/ITA for the Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers. You can print the entire interview and the final response for your records.
Go to IRS.gov/Pub17 to get Pub. 17, Your Federal Income Tax for Individuals, which features details on tax-saving opportunities, 2018 tax changes, and thousands of interactive links to help you find answers to your questions. View it online in HTML, as a PDF, or download it to your mobile device as an eBook.
You may also be able to access tax law information in your electronic filing software.
TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.
The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.
TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:
Your problem is causing financial difficulty for you, your family, or your business;
You face (or your business is facing) an immediate threat of adverse action; or
You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.
TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call them at 877-777-4778.
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to them at IRS.gov/SAMS.
TAS also has a website, Tax Reform Changes, which shows you how the new tax law may change your future tax filings and helps you plan for these changes. The information is categorized by tax topic in the order of the IRS Form 1040. Go to TaxChanges.us for more information.
LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. To find a clinic near you, visit TaxpayerAdvocate.IRS.gov/LITCmap or see IRS Pub. 4134, Low Income Taxpayer Clinic List.
- Built-in gain or loss, Allocations to account for built-in gain or loss.
- Installment sale, Installment reporting for sale of partnership interest.
- Assistance (see Tax help)
- Capital interest, Capital interest.
- Basis of property, Basis of contributed property.
- Built-in gain or loss, Allocations to account for built-in gain or loss.
- Distribution of property, Distribution of contributed property to another partner.
- Net precontribution gain, Net precontribution gain.
- Property, Contribution of Property
- Services, Contribution of Services
- Definition, partnership, Forming a Partnership
- Determining ownership, More than 50% ownership.
- Distributive share
- Electronic filing, Electronic Filing
- Guaranteed payments, Guaranteed Payments
- Limited liability company, Limited liability company (LLC).
- Sales or exchanges, Losses.
- Marketable securities, Marketable securities treated as money.
- Alternative rule, adjusted basis, Alternative rule for figuring adjusted basis.
- Basis, Basis of Partner's Interest
- Basis adjustments, Adjusted Basis
- Book value, Book value of partner's interest.
- Gift, Partnership Interests Created by Gift, Interest acquired by gift, etc.
- Liquidation of, Complete liquidation of partner's interest., Liquidation at Partner's Retirement or Death
- Mandatory basis adjustment, Mandatory adjustment.
- Performance of services, Partnership Interests Held in Connection With Performance of Services
- Sale, exchange, transfer, Sale, Exchange, or Other Transfer
- Special basis adjustment, Special adjustment to basis.
- Transactions with partnership, Transactions Between Partnership and Partners
- Abandoned or worthless interest, Abandoned or worthless partnership interest.
- Agreement, Partnership Agreement
- Basis, contributed property, Basis of contributed property.
- Defined, Forming a Partnership
- Exclusion from rules, Exclusion From Partnership Rules
- Forming, Forming a Partnership
- Liabilities, Effect of Partnership Liabilities
- Terminating, Terminating a Partnership
- Transactions with partner, Transactions Between Partnership and Partners
- Precontribution gain, Net precontribution gain.
- Profits interest, Profits interest.
- Publications (see Tax help)
- Related person, Related person.
- Tax help, How To Get Tax Help
- Tax withholding, foreign partner of firm, Withholding on foreign partner or firm.
- TEFRA, Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
- Terminating a partnership, Terminating a Partnership
- Unrealized receivables, Unrealized receivables.