The IRS has released draft revisions to Form 1065, Form 1120, and certain related schedules. Included in the release are a new Schedule B for Form 1120 and Schedule C for Form 1065. These forms will be for use for tax years ending on or after December 31, 2008.
The major change to Form 1120 is to Schedule K and involves reporting direct and indirect ownership. When ownership meets certain percentage thresholds, it must be reported on Schedule K. Certain questions on Schedule K have been revised for this reporting.
The new Schedule B (Form 1120) is required of corporations that file Form 1120, Schedule M-3. Schedule B will provide the IRS information about allocations, transfers of interest, cost sharing arrangements, and changes in methods of accounting.
The major changes to the Form 1065 also involve ownership issues. When ownership meets certain percentage thresholds, it must be reported on Schedule B (Form 1065). The revised Schedule B will also be used to provide information about cancelled debt, and like-kind exchanges that the partnership may have participated in at any time during the tax year. For small partnerships, the asset threshold for filing Schedules L, M-1, and M-2 has been increased from $600,000 to $1,000,000.
The new Schedule C will be required of Form 1065 filers that file Schedule M-3. Schedule C will be used to report information about related party transactions, allocations, transfers of interest, cost sharing arrangements, and changes in methods of accounting.
New instructions for Item J of Schedule K-1 (Form 1065) clarify how partnerships determine partners’ percentage share in the profit, loss, and capital at the beginning and end of the partnership’s tax year. The redesigned forms are available at the IRS website.
The major change to Form 1120 is to Schedule K and involves reporting direct and indirect ownership. When ownership meets certain percentage thresholds, it must be reported on Schedule K. Certain questions on Schedule K have been revised for this reporting.
The new Schedule B (Form 1120) is required of corporations that file Form 1120, Schedule M-3. Schedule B will provide the IRS information about allocations, transfers of interest, cost sharing arrangements, and changes in methods of accounting.
The major changes to the Form 1065 also involve ownership issues. When ownership meets certain percentage thresholds, it must be reported on Schedule B (Form 1065). The revised Schedule B will also be used to provide information about cancelled debt, and like-kind exchanges that the partnership may have participated in at any time during the tax year. For small partnerships, the asset threshold for filing Schedules L, M-1, and M-2 has been increased from $600,000 to $1,000,000.
The new Schedule C will be required of Form 1065 filers that file Schedule M-3. Schedule C will be used to report information about related party transactions, allocations, transfers of interest, cost sharing arrangements, and changes in methods of accounting.
New instructions for Item J of Schedule K-1 (Form 1065) clarify how partnerships determine partners’ percentage share in the profit, loss, and capital at the beginning and end of the partnership’s tax year. The redesigned forms are available at the IRS website.
My StumbleUpon Page
No comments:
Post a Comment