Search results
Results From The WOW.Com Content Network
Information about Form 8978 including recent updates, related forms, and instructions on how to file. Partners (other than pass-through partners such as partnerships or S corporations) who receive Form 8986 use Form 8978 to re-figure their tax liabilities for the affected years as well as any intervening years, up to the adjustment year, based ...
Form 8978 (Rev. January 2023) For Paperwork Reduction Act Notice, see instructions. Cat. No. 37802K. Form 8978 (1-2023)
Purpose of This Form. Partners (other than pass-through partners such as partnerships or S corporations) use Form 8978 and Schedule A (Form 8978) to report adjustments shown on Forms 8986 received from partnerships that have elected to push out adjustments to partnership-related items to their partners.
If you’re a partner in a non-passthrough entity that has elected to push out certain tax adjustments, you may be required to file IRS Form 8978. In this article, we’ll walk through this tax form. Specifically, we’ll discuss: How to complete IRS Form 8978. Who must file IRS Form 8978.
A partner reflects the additional reporting-year tax on Form 8978, Partner’s Additional Reporting Year Tax, with the adjustments themselves appearing on Form 8978, Schedule A, Partner’s Additional Reporting Year Tax (Schedule of Adjustments).
The first Form 8978 should include the total of all additional tax, penalties, and interest for all Forms 8978. For example, if a taxpayer has 7 applicable tax years, years 1–4 should be shown on the first Form 8978 and years 5–7 should be shown on the second Form 8978.
Non-pass-through partners should use Form 8978 to calculate and report their tax impact of adjustments pushed out to them. If the calculation results in an additional credit, this can apply toward the current reporting year and the partner’s estimated tax payments can be adjusted to reflect this credit.
IRS Form 8978, Partner's Additional Reporting Year Tax, must be filed to report adjustments shown on IRS Form 8986, Partner's Share of Adjustment(s) to Partnership-Related Item(s), received from a partnership that has elected to push out to their partners adjustments to partnership-related items.
Every partner, excluding pass-through partners, who receives a Form 8986 from a pass-through entity must file Form 8978. This form is used to report any additional reporting year tax as a result of taking into account the partner's share of the reviewed year (s) adjustments.
Form 8978 draft instructions. Generally, every partner (except pass-through entity partners) that receives a Form 8986 from its partnership must file a Form 8978 to report any additional tax due as a result of accounting for the partner’s share of the reviewed year’s adjustments. When to file.