IRS delays new Schedule K-1 reporting requirement

December 10, 2019

The IRS will not require the reporting of tax-basis capital accounts on Schedule K-1 forms for 2019, the agency announced in Notice 2019-66 (PDF) Monday, Dec. 9.

The proposed change, included in the draft of 2019 forms released earlier this fall, drew many comments and criticisms. The IRS will defer the requirement until 2020.

Notice 2019-66 also addresses several other tax items, including the 2019 requirement for reporting a partner’s share of net unrecognized Section 704(c) gain or loss.

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