Form 1065 K-1s: IRS Throws Rocks at Hornets’ Nest

Author: Bradley Burnett

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

On IRS 2024 Forms 1065, Schedules K-1 and Instructions, the IRS continues to ask for tons of detailed information and they’ve recently changed up the way they ask for it. We’ll dig into what exactly the IRS is asking for and how best to answer their questions.

Publication Date: February 2025

Designed For
Anyone desiring to learn current IRS requirements for completing Schedule K-1 of Form 1065

Topics Covered

• Capital accounts – Tax basis reporting tweaked again
• 2024 Form 1065 Schedule K-1 – Reporting requirements
• Disregarded entity partners – Disclosures, depth of implications
• 3 year average annual gross receipts test – 5 places it matters
• Basis in partner’s partnership interest – Timing, timing, timing, timing
• Disguised sales – Form 1065 question re: partner disclosure
• §704(c) Built-in gains and loss – New “as-you-go” info required
• Aggregation of at-risk activities – Disclosures with sticky implications
• Grouping of passive activities – Disclosure and detail required
• Changes to forms highlighted

Learning Objectives

• Identify tax basis capital account reporting – What must be computed and disclosed (and by when)
• Identify the plethora of other new info required (built-in gains lying in wait, disregarded entity partners, new tiered partnership reporting and more)
• Identify the form used to request a taxpayer identification number and certification
• Identify the basic computation for a partner’s capital account
• Identify the number of sets of capital accounts a partnership must maintain

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of tax preparation.

Advance Preparation
None