Instructions for Form 8082 |
2003 Tax Year |
Instructions for Form 8082 - Main Contents
This is archived information that pertains only to the 2003 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
If you are a partner, S corporation shareholder, beneficiary of an
estate or trust, owner of a foreign trust, or residual interest holder
in a real estate mortgage investment conduit (REMIC), you generally
must report items consistent with the way they were reported to you on
Schedule K-1, Schedule Q, or a foreign trust statement. See
Definitions below. However, there may be reasons why you
wish to report these items differently.
Use Form 8082 to notify the IRS of any such inconsistency between
your tax treatment of an item and the way the pass-through entity
treated and reported the same item on its return. Also use the form to
notify the IRS if you did not receive Schedule K-1 from the
partnership, S corporation, estate or domestic trust, Schedule Q from
the REMIC, or a foreign trust statement from the foreign trust by the
due date for filing your return (including extensions). However,
do not file Form 8082 as a partner in an electing large
partnership. Instead, you must report all partnership items in a
manner consistent with the way the partnership reported them on
Schedule K-1 (Form 1065–B).
Also use Form 8082 to make an administrative adjustment request
(AAR). An AAR is:
- A request by the tax matters partner or tax matters person
(TMP) to correct items on the original partnership, S corporation (for
a tax year beginning before 1997), or REMIC return.
- A request by a partner (other than a partner in an electing
large partnership), shareholder (for a tax year beginning before
1997), or residual interest holder to correct pass-through items on
that person's income tax return.
- A request by an electing large partnership to correct items
on the original partnership return.
Pass-through entity.
A partnership (including an electing large partnership), S
corporation, estate, trust, or REMIC.
Item.
Any item of a partnership, S corporation, estate, trust, or REMIC
required to be taken into account for the pass-through entity's tax
year by the partners, shareholders, beneficiaries, owners, or residual
interest holders of that pass-through entity.
Schedule K-1.
An annual schedule (or similar statement used as a substitute for
Schedule K-1) reporting the partner's, shareholder's, or beneficiary's
share of income, deductions, credits, etc., from a partnership, S
corporation, estate, or domestic trust.
Schedule Q.
A quarterly schedule (or similar statement used as a substitute for
Schedule Q) reporting the residual interest holder's share of taxable
income or net loss from the REMIC.
Foreign trust statement.
Any of the following annual statements furnished by a foreign trust
to its owners or beneficiaries:
- Foreign Grantor Trust Owner Statement,
- Foreign Grantor Trust Beneficiary Statement, or
- Foreign Nongrantor Trust Beneficiary Statement.
Generally, file Form 8082 if any one of the following
applies:
Caution:
If you do not notify the IRS that you are reporting an item (Part
I, line 1, box a) inconsistently, any deficiency (including any late
filing or late payment penalties applicable to the deficiency) that
results from a computational adjustment to make your amount or
treatment of the item consistent with the amount or treatment of the
item on the partnership's, S corporation's, estate's, trust's, or
REMIC's return may be assessed immediately. An inconsistent item can
exist on either your original or amended return.
- Schedule K-1, Schedule Q, or a foreign trust statement
is incorrect. You believe an item was not properly reported on
(a) the Schedule K-1 you received from the partnership, S
corporation, estate, or domestic trust, (b) the Schedule Q
you received from the REMIC, or (c) the foreign trust
statement you received from the foreign trust.
The same is true if you believe an item shown on your Schedule K-1,
Schedule Q, or foreign trust statement is incorrect but it is not an
item that otherwise has to be reported on your tax return. For
example, if you believe that the percentage shown as your ownership of
capital at the end of the year was not properly reflected on Schedule
K-1, file Form 8082 to report this, even though you are not otherwise
required to report that percentage on your tax return. If you discover
this kind of inconsistency after filing your original return, file an
amended return to report it. In the space provided on the amended
return for writing explanations, write “See attached Form 8082.”
In this case, no amounts need to be entered on the amended return if
the Form 8082 item is the only reason for filing the amended return.
- Partnership, S corporation, estate, trust, or REMIC has
not filed a tax return or given you a Schedule K-1, Schedule Q, or
foreign trust statement. The pass-through entity has not filed a
tax return or given you a Schedule K-1, Schedule Q, or foreign trust
statement by the time you are required to file your tax return
(including extensions), and there are items you must include on your
return.
- Administrative adjustment request (AAR). You are
filing Form 8082 as an AAR to adjust pass-through items.
Do not file Form 8082:
- For any amount of loss, deduction, or credit from Schedule
K-1, Schedule Q, or foreign trust statement that you do not report on
your return because the amount is otherwise limited by law (such as a
loss limited by the at-risk or passive activity rules).
- If you are a partner, and all of the following
apply:
- Your partnership had no more than 10 partners at any one
time during the tax year. A husband and wife (and their estates) are
treated as one partner.
- Each partner was either an individual (other than a
nonresident alien) or an estate (or for tax years ending after August
5, 1997, a C corporation).
- For tax years ending before August 6, 1997, each partner's
proportionate share of each partnership item was the same as his or
her proportionate share of every other item.
- The partnership did not have an election in effect under
section 6231(a)(1)(B)(ii) for the tax year to have the consolidated
audit rules apply.
- If you are a shareholder in an S corporation for a tax year
beginning before 1997, and all of the following apply:
- Your S corporation had no more than five shareholders at any
one time during the tax year.
- Each shareholder was either an individual or an
estate.
- The S corporation did not have an election in effect under
Temporary Regulations section 301.6241-1T(c)(2)(v) for the tax year to
have the consolidated audit rules apply.
- If you are a shareholder in an S corporation for a tax year
beginning after 1996, except as a notice of inconsistent
treatment when the shareholder's return is not consistent with the
return of the S corporation. However, an AAR cannot be filed to adjust
subchapter S items. Instead, the shareholders must file amended income
tax returns.
- If you are a beneficiary of an estate or domestic trust, or
a beneficiary or an owner of a foreign trust, except as a
notice of inconsistent treatment when the beneficiary's or owner's
return is not consistent with the return of the estate or trust.
However, an AAR cannot be filed to adjust estate or trust items.
Instead, the beneficiary or owner must file an amended income tax
return.
- If you are a residual interest holder, and all of
the following apply:
- Your REMIC had no more than 10 residual interest holders at
any one time during the tax year.
- If at any time during the tax year the REMIC had more than
one residual interest holder, each residual interest holder was either
an individual (other than a nonresident alien) or an estate (or for
tax years ending after August 5, 1997, a C corporation).
- The REMIC did not have an election in effect under section
6231(a)(1)(B)(ii) for the tax year to have the consolidated audit
rules apply.
- If you are a partner in an electing large partnership.
Partners must report all partnership items consistently with their
treatment on the partnership return as shown on Schedule K-1 (Form
1065-B). Only the partnership may file an AAR.
If you disregard the requirements for filing Form 8082, you may be
subject to the accuracy-related penalty under section 6662 or the
fraud penalty under section 6663. Either penalty is in addition to any
tax that results from a computational adjustment to make your amount
or treatment of the item consistent with the amount or treatment of
the item on the pass-through entity's return.
How Many Forms To Complete
You must complete and file a separate form for each pass-through
entity for which you are reporting an inconsistent or AAR item. If you
are reporting more than four inconsistent or AAR items from one
pass-through entity, use additional Forms 8082.
If you file Form 8082 as a notice of inconsistent treatment,
complete a single copy of the form, attach it to your tax return, and
file it when you file your original return.
If a TMP or electing large partnership files Form 8082 as an AAR on
behalf of the pass-through entity, the TMP or electing large
partnership must file it with the service center where the original
partnership, S corporation, or REMIC return was filed.
If a partner, shareholder, or residual interest holder files Form
8082 as an AAR, it must be filed in duplicate. The original copy is
filed with the partner's, shareholder's, or residual interest holder's
amended income tax return, and the other copy is filed with the
service center where the pass-through entity return is filed.
Generally, you may file an AAR to change items from a pass-through
entity for any tax year of that entity at any time that is:
- Within 3 years after the later of:
- The date on which the pass-through entity return for that
year is filed, or
- The last day for filing the pass-through entity return for
that year (excluding extensions); and
- Before a notice of final pass-through entity administrative
adjustment for that year is mailed to the TMP.
A partnership return or a REMIC return is generally due by the 15th
day of the 4th month following the close of the partnership's or
REMIC's tax year. An S corporation return is generally due by the 15th
day of the 3rd month following the close of the S corporation's tax
year.
Special rules apply if the period of limitations has been extended
by agreement and in the case of an AAR that relates to the
deductibility of bad debts or worthless securities. See sections 6227
and 6251 for details.
Judicial Review of an AAR
If the IRS fails to act on an AAR, you may file a petition for
judicial review with the United States Tax Court, United States Court
of Federal Claims, or United States District Court. You must file the
petition before the date that is 2 years after the date you
filed the AAR, but not until after the date that is 6
months from the date of such filing. The 2-year period may be extended
if the IRS and you agree in writing. For more details, see sections
6228 and 6252.
Special Rules for Electing Large Partnerships
An electing large partnership may file an AAR to adjust partnership
items. Generally, the electing large partnership has two choices for
handling the adjustment.
- It can combine the adjustment with the same partnership item
for the year in which the IRS allows the adjustment and pass it
through to the current partners for that year. However, if the
adjustment involves a reduction in a credit which exceeds the amount
of that credit for the partnership tax year in which the adjustment is
allowed, the partnership must pay tax in an amount equal to that
excess amount.
- It may elect not to pass the adjustment through to current
partners by paying tax on any imputed underpayment that results from
the adjustment, as explained in section 6242(b)(4).
In either case, the partnership is liable for any interest and
penalties on the imputed underpayment that results from the
adjustment. See section 6242(b) for details. Interest is figured on
the imputed underpayment for the period beginning on the day after the
due date (excluding extensions) of the partnership return for the
adjusted year and ending on the due date (excluding extensions) of the
partnership return for the tax year the adjustment takes effect (or
the date the partnership paid the tax due under 2 above, if
earlier). The adjusted year is the partnership tax year in
which the item being adjusted arose.
Attach Form 8082 to an amended Form 1065-B for the adjusted year.
Enter in the top margin of the amended return “See attached Form
8082 for AAR per IRC section 6251.” Be sure to check box G(3) on
page 1 of the amended return. Identify in Part II of Form 8082 the
amount and treatment of any item the partnership is changing from the
way it was reported on the original return. If the partnership elects
to pay the tax, enter it on line 26 of page 1 of the amended Form
1065-B. Do not enter any other amounts on the amended Form 1065-B.
Attach a computation of the tax to Form 8082. The IRS will bill the
partnership for any interest and penalties it owes.
If the income, deductions, credits, or other information provided
to any partner on Schedule K-1 are incorrect under section 704 in the
partner's distributive share of any partnership item shown on Form
1065-B, file an amended Schedule K-1 (Form 1065-B) for that partner
with Form 8082. Also give the partner a copy of the amended Schedule
K-1.
Specific instructions for most of the lines have been provided.
Lines that do not appear in the instructions are self-explanatory. If,
after reading the instructions, you are unable to complete an item in
Part I or Part II, enter “See Part III” in the entry space for
that item.
Note:
If the pass-through entity did not file a return or give you a
Schedule K-1, Schedule Q, or foreign trust statement by the time you
are required to file your return, complete Parts I and II to the best
of your knowledge.
Line 1.
Check box (a) if either 1 or 2 below applies:
- You believe an item was not properly reported on the
Schedule K-1, Schedule Q, or foreign trust statement you received;
or
- The pass-through entity has not filed a tax return or given
you a Schedule K-1, Schedule Q, or foreign trust statement by the time
you are required to file your tax return (including
extensions).
Check box (b) if you are filing an AAR on which you are
changing the amount or treatment of any item from the way you reported
it on your return, or in the case of a TMP, the pass-through entity
return as originally filed or as you later amended it.
Check boxes (a) and (b) if you are reporting
an item on your AAR differently from the way that you reported the
item on your original return and inconsistently with the way the
pass-through entity reported the item.
Line 2.
A substituted return is an amended return in which the TMP requests
that the treatment of an item shown on the AAR be substituted for the
treatment of the item on the pass-through entity's return. If the IRS
allows substituted return treatment, the changes shown on the amended
return will be treated as corrections of mathematical or clerical
errors, and the IRS may credit or refund any overpayment of tax to the
partners, shareholders, or residual interest holders based on the
amended return or assess any resulting tax without a deficiency or
entity level proceeding.
If the request is not treated as a substituted return, the IRS may
credit or refund any overpayment of tax to the partners, shareholders,
or residual interest holders per the request; conduct an examination
of the pass-through entity's return; or take no action on the request.
When a request is not treated as a substituted return, the IRS cannot
assess tax without a deficiency or entity level proceeding.
In either case, if you are a TMP filing an AAR, file an amended
Form 1065, Form 1120S, or Form 1066, but do not enter any amounts on
the form itself. Attach Form 8082, answer the question on line 2, and
identify the amount and treatment of any item you are changing from
the way it was reported on the original return. The TMP must sign the
amended return.
If you are requesting substituted return treatment, enter in the
top margin of the amended return “ See attached Form 8082 for AAR per
IRC section 6227(c)(1).” If you are not requesting
substituted return treatment, enter “ See attached Form 8082 for AAR
per IRC section 6227(c)(2).”
Attach amended Schedules K-1 or Schedules Q showing the corrected
amounts for each partner, shareholder, or residual interest holder.
Lines 3 through 8.
Generally, the information for these lines can be found on Schedule
K-1, Schedule Q, or foreign trust statement. Skip line 6 if no tax
shelter registration number is reported on Schedule K-1 or if you are
filing as the holder of a residual interest in a REMIC. The tax year
of a REMIC (line 8) always ends on December 31.
Column (a).
If you received a Schedule K-1, Schedule Q, or foreign trust
statement, enter the line number and description shown on the form.
Otherwise, enter a complete description of the item.
Column (b).
If you believe that the amount of any item shown on Schedule K-1,
Schedule Q, or foreign trust statement was not properly reported,
check “ Amount of item.”
If you believe that the treatment of any item was not properly
reported (e.g., a long-term capital loss that a partner thinks should
be an ordinary loss), check “ Treatment of item.”
Check both parts of column (b) if either 1 or
2 below applies:
- You believe that both the amount and treatment of the item
shown on Schedule K-1, Schedule Q, or foreign trust statement were not
properly reported, or you believe an item was omitted from the form;
or
- The pass-through entity did not file a return or give you a
Schedule K-1, Schedule Q, or foreign trust statement.
Note:
If you check only “Treatment of item,” you do not need to
complete columns (d) and (e).
Column (c).
If you attach Form 8082 to your original return, enter the amount
as shown on the Schedule K-1, Schedule Q, or foreign trust statement
you received.
If you attach Form 8082 to your amended return, enter the amount as
shown on your original return or as you last amended it prior to the
current amendment.
If the pass-through entity did not file a return, or if you did not
receive a Schedule K-1, Schedule Q, or foreign trust statement, or if
you are reporting items that you believe were omitted, enter zero in
column (c).
Explain in detail the reasons you are reporting an inconsistent or
amended item as follows:
- If you believe that the amount or treatment of any item
shown on Schedule K-1, Schedule Q, or foreign trust statement was not
properly reported, state how you think the item should be treated and
why.
- If the pass-through entity has not filed a tax return by the
time you are required to file your tax return, enter as the
explanation, “Partnership (S corporation, Estate, Trust, or REMIC)
return not filed.”
- If the pass-through entity did not give you a Schedule K-1,
Schedule Q, or foreign trust statement by the time you are required to
file your tax return, enter as the explanation “Schedule K-1
(Schedule Q or foreign trust statement) not received.”
- If you are filing an AAR on which you are changing the
amount or treatment of any item on your original return, explain why
you are changing the item.
- If you believe an item was omitted from Schedule K-1,
Schedule Q, or foreign trust statement, enter as the explanation
“Item was omitted from Schedule K-1 (Schedule Q or foreign trust
statement).”
Paperwork Reduction Act Notice.
We ask for the information on this form to carry out the Internal
Revenue laws of the United States. You are required to give us the
information. We need it to ensure that you are complying with these
laws and to allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on a form
that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a
form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue law.
Generally, tax returns and return information are confidential, as
required by section 6103.
The time needed to complete and file this form will vary depending
on individual circumstances. The estimated average time is:
If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would be
happy to hear from you. See the instructions for the tax return with
which this form is filed.
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