Preview
Dowe Partners, LLC
Senior Partner:
Daniel W. Dowe, Esq.
914-441-3591 - direct
ddowe@dowepartners.com
January 19, 2021
By NYSCEF & Fax (914-824-5862)
Hon. Joan Lefkowitz
Compliance Part
Westchester County Supreme Court
111 Dr. Martin Luther King Blvd.
White Plains, NY 10604
Reference: Dowe v. Dowe, Perkins, Index
et.al., No.: 53327/2018
Dear Judge Lefkowitz:
The Dowe Defendants produced copies of the 2016, 2017 and 2018 personal tax returns as requested by
the Court.
Contrary to Ms. Iacono's assertions, we did not have any Schedule C income/loss forthe tax years 2016
or 2017. With respect to the tax year 2018, a copy of the Schedule C was included in the package to Ms.
Iacono.
Secondly, the IRS does not require Schedule K-1 to be filed with personal tax returns. Indeed, the IRS
instructs the taxpayer not to file Schedule K-1s. See attached excerpts from IRS instructions for 2016,
2017 and 2018.
Clearly, counsel isnot familiar with tax law and her letterisnothing more than another billable piece of
useless correspondence.
Respectfully yours,
Daniel W. Dowe, Es .
Cc: J.Iacono, Esq.
J. Nelson, Esq.
S. Denker, Esq.
www.dowepartners.com
Department of the Treasury
Internal Revenue Service
Partner's Instructions for
Schedule K-1 (Form 1065)
Partner's Share of Income, Deductions, Credits, etc.
(For Partner's Use Only)
section references are to the Intemal Revenue Code
If the
treatment on youroriginalor Form 1099-B, Proceeds From Broker and
unless otherwise noted. amended return with
is inconsistent the BarterExchange Transactions.
partnership'streatment,or if the
partnership
Future Developments was required to buthasnot filed
a return,you If a partner to
is required notifythe
must fileForm 8082, Noticeof Inconsistent partnershipof a section
751(a) exchange but
For thelatestinformationabout Treatment or Administrative
Adjustment to do so,
fails thepartner will
be subjectto a
developments relatedtoSchedule K-1(Form Request (AAR),with youroriginalor penaltyforeach such failure.
However, no
1065) and the Partner's
Instructionsfor amended return
to and
identify explainany penaltywillbe imposed if the
partner can
Schedule K-1 (Form 1065),such as inconsistency(or to note
thata partnership show that the failure
was due to reasonable
legislation
enacted aftertheywere returnhas notbeen filed). cause and not willful
neglect.
published,go to www.irs.qov/form1065.
If youarerequired Form
to file 8082 but Gain or loss
from the disposition
of
do notdo so, you may be subjectto the TlP your partnershipinterestis generally
General Instructions accuracy-relatedpenalty.This penaltyis in netinvestment income under section
additionto anytax thatresults
from making 1411 and may be subjectto the net
Purpose of Schedule K-1 youramountortreatment of theitem investment income tax.See Form 8960, Net
consistentwiththat shown on the Investment Income Tax-Individuals,
The partnershipuses Schedule K-1 to report
Partnership'sreturn.
Any deficiencythat Estates,and Trusts,and its Instructions
for
your share of the
partnership'sincome
resultsfrom making theamounts consistent informationabout how to reportand figure
deductions, etc.
credits, Keep it for your
may be assessed immediately. the tax due.
records.Do not file
it with
your taxreturn
unless you are required
specifically to do so.
(See the instructions
forCode O. Backup Errors Nominee Reporting
withholding, The
later.) partnership a
files If youbelievethepartnership has made an
Any person who holds, or indirectly,
directly
copy of Schedule K-1 (Form 1065) withthe erroron your Schedule K-1,notifythe an interest
in a partnership
as a nominee for
IRS. partnershipand ask fora corrected another person must fumish a written
Schedule K-1. Do not change any items on statement to the last
F or p ection ed Ie K- 1 may partnershipby the day
your copy of ScheduleK-1. Be sure thatthe of themonth end
followingthe of the
partnershipsends a copy of thecorrected partnership'staxyear.This statement must
dentifyingnumber (social
securitynumber Schedule K-1 to theIRS. are
If you a partner includethe and
(SSN), etc.).
However, the has name, address, identifying
partnership in a partnership
thatdoesn'tmeet thesmall
reportedyour complete number of thenominee and such other
number
identifying to exception and you report
partnership any person, description
of thepartnership
partnershipitem on yourreturnin a manner interestheldas nominee for that and
person,
Although the different
from theway thepartnership otherinformationrequired
partnership generallyisn't by Temporary
subjectto income reported must
it, you file
Form 8082· Regulations section1.6031(c)-1T.A
tax,you may be liablefor
taxon your share of thepartnershipincome, nominee that to furnish
fails thisstatement
whether or not distributed.
Includeyour Sale or Exchange of must furnishto theperson for whom the
share on yourtax returnif a return
is nominee holdsthe partnershipinterest
a
partnership Interest
required.Use these instructions
to helpyou copy of Schedule K-1 and related
iho seso
repo itemsshown on Schedule K-1 on heo tionwithin30 days of receiving
it from
re e7
exchange must the
notify partnership,in
The amount of loss
and deductionyou within
writing, 30 days of theexchange if
(or, A nominee who to furnishall the
fails
claimon your taxreturn be less earlier,
by January 15 of thecalendaryear information
may may requiredby Temporary
than theamount reportedon Schedule K-1.It followingthecalendar year in whichthe Regulations section1.6031(c)-1T when due,
is thepartner's to consider
responsibility and exchange occurred).A "section751(a) or who furnishesincorrect is
exchange" information,
applicablelimitations.
See sale
is any or exchange of a subjectto a $260 for eachfailure.
apply any penalty
Limitationson Losses,Deductions, and partnershipinterestin whichany money or The maximum is $3,193,000for all
penalty
Credits, for
later, more information. otherproperty receivedby the partnerin such failures a calendar If the
during year.
exchange forthatpartner'sinterest
is nominee disregards
intentionally the
attributable
to unrealizedreceivables(as requirement to report
correct
Inconsistent Treatment of information,
defined in section
751(c))or inventoryitems each $260 increasesto $530
penalty or, if
temS (as definedin section
751(d)). of the
greater,10% aggregate amount of
Generally,you must reportpartnership items items requiredto be reported,
and there is no
The writtennoticeto thepartnershipmust
shown on yourSchedule K-1 (andany limit
to theamount of thepenalty.
includethe names and addresses of both
attached statements)the same way thatthe
partiesto theexchange, the identifying
partnershiptreatedthe itemson its return.
numbers of thetransferor
and (if known)of International Boycotts
This ruledoesn'tapply if your
partnershipis
exception" the transferee,
and the exchange date· thathad operations
withinthe"small partnership and Every partnership in, or
doesn'telectto have thetax treatmentof An exception to this
ruleis made forsales relatedto, a boycotting
country,ccmpany, or
items determined at the or exchanges of publicly
traded a nationalof a boycotting
countrymust file
partnership partnership
level. interestsfor whicha brokeris required
to file Form 5713, International
Boycott Report.
partnership
Dec 29, 2016 Cat. No. 11396N
Department of the Treasury
Internal Revenue Service
Partner's Instructions for
Schedule K-1 (Form 1065)
Partner's Share of Income, Deductions, Credits, etc.
(For Partner's Use Only)
Section references are to the Intemal Revenue Code
If the
treatment on youroriginalor interests
forwhich a broker is required
to file
unless otherwise noted· amended returnis inconsistent
with the Form 1099-B, Proceeds From Broker and
partnership'streatment,or if the
partnership BarterExchange Transactions.
Future Developments was required to buthasnot filed
a return,you
must fileForm 8082, Noticeof Inconsistent If a partner
is required
to notify
the
For thelatestiritarrmation
about Treatment or Administrative
Adjustment of a section exchange but
partnership 751(a)
developments relatedto Schedule K-1(Form Request with youroriginalor fails
to do so,thepartner will
be subjectto a
(AAR),
1065) and the Partner's
Instructionsfor amended retumto and explain foreach such failure.
However, no
identify any penalty
Schedule K-1 (Form 1065),such as (or to note
thata partnership willbe imposed if the
partner can
inconsistency penalty
legislation
enacted aftertheywere returnhas not been filed). show that thefailure
was due to reasonable
published,go to IRS.qov/Form1065. cause and not willful
neglect.
If youarerequiredto file
Form 8082 but
do not do so, you be subjectto the Gain or loss
from the disposition
of
General may
Instructions TIP your patinershipinterestmay be net
accuracy-relatedpenalty.This penaltyis in
additionto anytax that from
results investmentincome under section
making
Purpose of Schedule K-1 your amount or treatmentof theitem 1411 and could be subjectto the net
consistentwiththatshown on the investment income tax.See Form 8960, Net
The partnershipuses Schedule K-1 toreport
your shareof the partnership'sreturn. that Investment Income Tax-Individuals,
partnership'sincome, Any deficiency
etc. resultsfrom theamounts consistent Estates,and Trusts,and its instructions
for
deductions, credits, Keep it for your making
records. be assessed immediately. informationabout how to reportand figure
Do not file
it with
your taxreturn may
unless you are requiredto do so. the tax due.
specifically
(See the instructions
forCode O. Backup Errors
withholding, The
later.) partnershipfiles
a If youbelievethe Nominee
partnership has made an Reporting
co y of Schedule K-1 (Form 1065) withthe erroron your Schedule K-1, the
notify Any person who holds, or indirectly,
directly
partnershipand ask fora corrected an interest
in a partnership
as a nominee for
For yourprotection,Schedule K-1 Schedule K-1.Do not change any items on another person must furnisha written
may
show the last four
digitsof your your copy of ScheduleK-1. Be sure thatthe statement to the
only partnershipby thelastday
number (social number partnershipsends a copy of thecorrected of themonth the end of the
identifying security following
(SSN), etc.).
However, the has Schedule K-1 to theIRS. If you
are a partner partnership'stax year.
This statement must
partnership
reportedyour complete number to that
in a partnership doesn'tmeet thesmall includethe name, address, and
identifying identifying
the IRS. partnershipexception and you reportany number of thenominee and such other
partnershipitem on yourreturnin a manner person, descriptionof the
Although isn't partnership
thepartnership generally different
from the the
way partnership interestheldas nominee forthat person,and
subjectto income tax,you may be liablefor reported it, you
must Form
file 8082· otherinformationrequired by Temporary
taxon your share of thepartnershipincome, Regulations section1.6031(c)-1T.A
whether or not distributed.
includeyour
Sale or Exchange of nominee that to furnish
fails thisstatement
eha
mus uernihsh en
red.Use these instrct o s o elpyou Partnership Interest
rsne p1hn t.hta
reportthe itemsshown on Schedule K-1 on Generally,a partnerwho or exchanges
sells
copy of Schedule K-1 and related
your taxreturn- a partnership in a section
interest 751(a) informationwithin30 days of receiving
it from
exchange must the
notify partnership,in the partnership.
The amount of loss
and deduction you
within
writing, 30 days of theexchange if
(or,
may claimon yourtax returnmay be less
earlier,
by January 15 of thecalendaryear A nominee who to furnish
fails all the
than theamount reportedon Schedule K-1.It
followingthecalendar year in whichthe informationrequired
is thepartner's to consider
responsibility and by Temporary
exchange occurred).A "section751(a) Regulations section1.6031(c)-1T when due,
apply any applicablelimitations.
See
exchange is anysaleor exchange of a or who furnishesincorrect is
information,
Limitationson Losses,Deductions, and
partnershipinterestin whichany money or subjectto a $260 foreach failure.
Credits, for
later, more information. penalty
otherproperty receivedby the partnerin The maximum is $3,218,500forall
penalty
exchange for that
partner'sinterest
is such failures a calendaryear.If the
lnCOnSiStent 'T reatment of during
attributable
to unrealizedreceivables(as nominee disregards the
intentionally
ItemS defined in section
751(c))or inventoryitems requirement to report
correctinformation,
you must report items (as definedin section751(d)). each $260 increasesto $530 or,if
Generally, partnership penalty
shown on yourSchedule K-1 (andany greater,10% of the
aggregate amount of
The writtennoticeto thepartnershipmust
attached statements)the same way thatthe items required and
to be reported, there is no
includethe names and addresses of both
partnershiptreatedthe itemson its return. limit
to theamount of thepenalty.
partiesto theexchange, the identifying
This ruledoesn'tapply if your
partnershipis of the of
exception" numbers transferor
and (if known)
withinthe"small partnership and International Boycotts
the transferee,
and the exchange date.
doesn'telectto have thetax treatmentof
. Every partnershipthathad operations in, or
partnershipitems determined at the An exception to this
ruleis made for sales
relatedto,a boycottingcountry,company, or
partnershiplevel. or exchanges of publicly
traded partnership
Jan 23, 2018 Cat. No. 11396N
Department of the Treasury
Internal Revenue Service
Partner's Instructions for
Schedule K-1 (Form 1065)
Partner's Share of Income, Deductions, Credits, etc.
(For Partner's Use Only)
•
section references are to the internal Revenue Code
Box 15, code P is usedto report
the new reportthe itemsshown on Schedule K-1 on
unless otherwise noted· section45S creditreportedon Form your taxretum.
8994,
Employer CreditforPaid Familyand Medical
Leave. The amount of loss
and deductionyou
Future Developments
• may claimon yourtax returnmay be less
Box 16, Foreigntransactions,the
been added. than theamount reportedon Schedule K-1. It
For thelatestinformationabout followingnew codes have
is thepartner's to consider
responsibility and
developments relatedto Schedule K-1(Form For foreigngross income sourced at the
level: apply any applicablelimitations.
See
1065) and the Partner's
Instructionsfor partnership code D, section951A
Limitationson Losses,Deductions, and
Schedule K-1 (Form 1065),such as category;code E, foreign
branch category.
and at the Credits, for
later, more information.
legislation
enacted aftertheywere Deductions allocated apportioned
published,go to IRS.qov/Form1065. partnershiplevelto foreign
source income:
code K, section951A category;code L, lnCOnsistent Treatment of
foreignbranch category.
What's New |tems
Other information:code U, section951A(c)
Generally,you must reportpartnershipitems
• (1)(A)testedincome; code foreign
V, tested
Qualifiedbusiness income deduction.For shown on yourSchedule K-1(and any
inCOme taX; code W, section965
tax yearsbeginning after2017,individuals, attached the same way thatthe
nfo9rma statements)
estates,and trustsmay be entitled
to a Partnershiptreatedthe itemson its return.
9onnew codes have been added fœ
deduction of up to 20%of their
qualified
the business
qualified income deduction: If the treatment
on youroriginal
or
business income from a tradeor business.
For more see section199A and
code Z, section199A income;code AA, amended return with
is inconsistent the
information,
section 199A W-2 wages; code AB, section partnership'streatment,or if the
Pub. 535, Business Expenses. Also,see partnership
199A unadjusted basis;code AC, section was required to but
has not filed
a return,you
Codes Z throughAD, Deduction for qualified
199A REIT
qualified dividends; code AD, must Form
file Noticeof Inconsistent
business income, under Box 20. Other 8082,
section 199A qualified
PTP income· Treatment or Administrative
Adjustment
information.
• Box 20, new code AE, excess taxable
• In Part
II, item
K, the spaces were Request (AAR),with youroriginalor
entry
income, and code AF, excess business amended retum and
to identify explain
expanded to reflect
beginningand ending any
interestincome, have been added for (or to note
thata partnership
partner'sshare of liabilities. inconsistency
• reportinglimitations
on thededuction of returnhas not been filed).
New box6c, Dividend has
equivalents,
business interest
under section 163(j).
been added to report
section871(m) • Box 20,new code AG has been added to If youarerequiredto file
Form 8082 but
income
• reporteach partner'sshare of thegross do not do so, youmay be subjectto the
For t ox
11, Other income (loss)code F
receiptsunder section59A(e). accuracy-relatedpenalty.This penaltyis in
indicatessection951A GILTI incorne.
additionto anytax thatresults
from making
yow amount & treatnient
of theHen1
The followingcodes have been added or General |nStrUCtlOnS
consistentwith
changed of the
as a result Tax and thatshown on the
Cuts
partnership'sreturn.
Any deficiencythat
Jobs Act
• Purpose of Schedule K-1 resultsfrom making theamounts consistent
Box 11, code G has been a
Preview
Dowe Partners, LLC Senior Partner: Daniel W. Dowe, Esq. 914-441-3591 - direct ddowe@dowepartners.com January 19, 2021 By NYSCEF & Fax (914-824-5862) Hon. Joan Lefkowitz Compliance Part Westchester County Supreme Court 111 Dr. Martin Luther King Blvd. White Plains, NY 10604 Reference: Dowe v. Dowe, Perkins, Index et.al., No.: 53327/2018 Dear Judge Lefkowitz: The Dowe Defendants produced copies of the 2016, 2017 and 2018 personal tax returns as requested by the Court. Contrary to Ms. Iacono's assertions, we did not have any Schedule C income/loss forthe tax years 2016 or 2017. With respect to the tax year 2018, a copy of the Schedule C was included in the package to Ms. Iacono. Secondly, the IRS does not require Schedule K-1 to be filed with personal tax returns. Indeed, the IRS instructs the taxpayer not to file Schedule K-1s. See attached excerpts from IRS instructions for 2016, 2017 and 2018. Clearly, counsel isnot familiar with tax law and her letterisnothing more than another billable piece of useless correspondence. Respectfully yours, Daniel W. Dowe, Es . Cc: J.Iacono, Esq. J. Nelson, Esq. S. Denker, Esq. www.dowepartners.com Department of the Treasury Internal Revenue Service Partner's Instructions for Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. (For Partner's Use Only) section references are to the Intemal Revenue Code If the treatment on youroriginalor Form 1099-B, Proceeds From Broker and unless otherwise noted. amended return with is inconsistent the BarterExchange Transactions. partnership'streatment,or if the partnership Future Developments was required to buthasnot filed a return,you If a partner to is required notifythe must fileForm 8082, Noticeof Inconsistent partnershipof a section 751(a) exchange but For thelatestinformationabout Treatment or Administrative Adjustment to do so, fails thepartner will be subjectto a developments relatedtoSchedule K-1(Form Request (AAR),with youroriginalor penaltyforeach such failure. However, no 1065) and the Partner's Instructionsfor amended return to and identify explainany penaltywillbe imposed if the partner can Schedule K-1 (Form 1065),such as inconsistency(or to note thata partnership show that the failure was due to reasonable legislation enacted aftertheywere returnhas notbeen filed). cause and not willful neglect. published,go to www.irs.qov/form1065. If youarerequired Form to file 8082 but Gain or loss from the disposition of do notdo so, you may be subjectto the TlP your partnershipinterestis generally General Instructions accuracy-relatedpenalty.This penaltyis in netinvestment income under section additionto anytax thatresults from making 1411 and may be subjectto the net Purpose of Schedule K-1 youramountortreatment of theitem investment income tax.See Form 8960, Net consistentwiththat shown on the Investment Income Tax-Individuals, The partnershipuses Schedule K-1 to report Partnership'sreturn. Any deficiencythat Estates,and Trusts,and its Instructions for your share of the partnership'sincome resultsfrom making theamounts consistent informationabout how to reportand figure deductions, etc. credits, Keep it for your may be assessed immediately. the tax due. records.Do not file it with your taxreturn unless you are required specifically to do so. (See the instructions forCode O. Backup Errors Nominee Reporting withholding, The later.) partnership a files If youbelievethepartnership has made an Any person who holds, or indirectly, directly copy of Schedule K-1 (Form 1065) withthe erroron your Schedule K-1,notifythe an interest in a partnership as a nominee for IRS. partnershipand ask fora corrected another person must fumish a written Schedule K-1. Do not change any items on statement to the last F or p ection ed Ie K- 1 may partnershipby the day your copy of ScheduleK-1. Be sure thatthe of themonth end followingthe of the partnershipsends a copy of thecorrected partnership'staxyear.This statement must dentifyingnumber (social securitynumber Schedule K-1 to theIRS. are If you a partner includethe and (SSN), etc.). However, the has name, address, identifying partnership in a partnership thatdoesn'tmeet thesmall reportedyour complete number of thenominee and such other number identifying to exception and you report partnership any person, description of thepartnership partnershipitem on yourreturnin a manner interestheldas nominee for that and person, Although the different from theway thepartnership otherinformationrequired partnership generallyisn't by Temporary subjectto income reported must it, you file Form 8082· Regulations section1.6031(c)-1T.A tax,you may be liablefor taxon your share of thepartnershipincome, nominee that to furnish fails thisstatement whether or not distributed. Includeyour Sale or Exchange of must furnishto theperson for whom the share on yourtax returnif a return is nominee holdsthe partnershipinterest a partnership Interest required.Use these instructions to helpyou copy of Schedule K-1 and related iho seso repo itemsshown on Schedule K-1 on heo tionwithin30 days of receiving it from re e7 exchange must the notify partnership,in The amount of loss and deductionyou within writing, 30 days of theexchange if (or, A nominee who to furnishall the fails claimon your taxreturn be less earlier, by January 15 of thecalendaryear information may may requiredby Temporary than theamount reportedon Schedule K-1.It followingthecalendar year in whichthe Regulations section1.6031(c)-1T when due, is thepartner's to consider responsibility and exchange occurred).A "section751(a) or who furnishesincorrect is exchange" information, applicablelimitations. See sale is any or exchange of a subjectto a $260 for eachfailure. apply any penalty Limitationson Losses,Deductions, and partnershipinterestin whichany money or The maximum is $3,193,000for all penalty Credits, for later, more information. otherproperty receivedby the partnerin such failures a calendar If the during year. exchange forthatpartner'sinterest is nominee disregards intentionally the attributable to unrealizedreceivables(as requirement to report correct Inconsistent Treatment of information, defined in section 751(c))or inventoryitems each $260 increasesto $530 penalty or, if temS (as definedin section 751(d)). of the greater,10% aggregate amount of Generally,you must reportpartnership items items requiredto be reported, and there is no The writtennoticeto thepartnershipmust shown on yourSchedule K-1 (andany limit to theamount of thepenalty. includethe names and addresses of both attached statements)the same way thatthe partiesto theexchange, the identifying partnershiptreatedthe itemson its return. numbers of thetransferor and (if known)of International Boycotts This ruledoesn'tapply if your partnershipis exception" the transferee, and the exchange date· thathad operations withinthe"small partnership and Every partnership in, or doesn'telectto have thetax treatmentof An exception to this ruleis made forsales relatedto, a boycotting country,ccmpany, or items determined at the or exchanges of publicly traded a nationalof a boycotting countrymust file partnership partnership level. interestsfor whicha brokeris required to file Form 5713, International Boycott Report. partnership Dec 29, 2016 Cat. No. 11396N Department of the Treasury Internal Revenue Service Partner's Instructions for Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. (For Partner's Use Only) Section references are to the Intemal Revenue Code If the treatment on youroriginalor interests forwhich a broker is required to file unless otherwise noted· amended returnis inconsistent with the Form 1099-B, Proceeds From Broker and partnership'streatment,or if the partnership BarterExchange Transactions. Future Developments was required to buthasnot filed a return,you must fileForm 8082, Noticeof Inconsistent If a partner is required to notify the For thelatestiritarrmation about Treatment or Administrative Adjustment of a section exchange but partnership 751(a) developments relatedto Schedule K-1(Form Request with youroriginalor fails to do so,thepartner will be subjectto a (AAR), 1065) and the Partner's Instructionsfor amended retumto and explain foreach such failure. However, no identify any penalty Schedule K-1 (Form 1065),such as (or to note thata partnership willbe imposed if the partner can inconsistency penalty legislation enacted aftertheywere returnhas not been filed). show that thefailure was due to reasonable published,go to IRS.qov/Form1065. cause and not willful neglect. If youarerequiredto file Form 8082 but do not do so, you be subjectto the Gain or loss from the disposition of General may Instructions TIP your patinershipinterestmay be net accuracy-relatedpenalty.This penaltyis in additionto anytax that from results investmentincome under section making Purpose of Schedule K-1 your amount or treatmentof theitem 1411 and could be subjectto the net consistentwiththatshown on the investment income tax.See Form 8960, Net The partnershipuses Schedule K-1 toreport your shareof the partnership'sreturn. that Investment Income Tax-Individuals, partnership'sincome, Any deficiency etc. resultsfrom theamounts consistent Estates,and Trusts,and its instructions for deductions, credits, Keep it for your making records. be assessed immediately. informationabout how to reportand figure Do not file it with your taxreturn may unless you are requiredto do so. the tax due. specifically (See the instructions forCode O. Backup Errors withholding, The later.) partnershipfiles a If youbelievethe Nominee partnership has made an Reporting co y of Schedule K-1 (Form 1065) withthe erroron your Schedule K-1, the notify Any person who holds, or indirectly, directly partnershipand ask fora corrected an interest in a partnership as a nominee for For yourprotection,Schedule K-1 Schedule K-1.Do not change any items on another person must furnisha written may show the last four digitsof your your copy of ScheduleK-1. Be sure thatthe statement to the only partnershipby thelastday number (social number partnershipsends a copy of thecorrected of themonth the end of the identifying security following (SSN), etc.). However, the has Schedule K-1 to theIRS. If you are a partner partnership'stax year. This statement must partnership reportedyour complete number to that in a partnership doesn'tmeet thesmall includethe name, address, and identifying identifying the IRS. partnershipexception and you reportany number of thenominee and such other partnershipitem on yourreturnin a manner person, descriptionof the Although isn't partnership thepartnership generally different from the the way partnership interestheldas nominee forthat person,and subjectto income tax,you may be liablefor reported it, you must Form file 8082· otherinformationrequired by Temporary taxon your share of thepartnershipincome, Regulations section1.6031(c)-1T.A whether or not distributed. includeyour Sale or Exchange of nominee that to furnish fails thisstatement eha mus uernihsh en red.Use these instrct o s o elpyou Partnership Interest rsne p1hn t.hta reportthe itemsshown on Schedule K-1 on Generally,a partnerwho or exchanges sells copy of Schedule K-1 and related your taxreturn- a partnership in a section interest 751(a) informationwithin30 days of receiving it from exchange must the notify partnership,in the partnership. The amount of loss and deduction you within writing, 30 days of theexchange if (or, may claimon yourtax returnmay be less earlier, by January 15 of thecalendaryear A nominee who to furnish fails all the than theamount reportedon Schedule K-1.It followingthecalendar year in whichthe informationrequired is thepartner's to consider responsibility and by Temporary exchange occurred).A "section751(a) Regulations section1.6031(c)-1T when due, apply any applicablelimitations. See exchange is anysaleor exchange of a or who furnishesincorrect is information, Limitationson Losses,Deductions, and partnershipinterestin whichany money or subjectto a $260 foreach failure. Credits, for later, more information. penalty otherproperty receivedby the partnerin The maximum is $3,218,500forall penalty exchange for that partner'sinterest is such failures a calendaryear.If the lnCOnSiStent 'T reatment of during attributable to unrealizedreceivables(as nominee disregards the intentionally ItemS defined in section 751(c))or inventoryitems requirement to report correctinformation, you must report items (as definedin section751(d)). each $260 increasesto $530 or,if Generally, partnership penalty shown on yourSchedule K-1 (andany greater,10% of the aggregate amount of The writtennoticeto thepartnershipmust attached statements)the same way thatthe items required and to be reported, there is no includethe names and addresses of both partnershiptreatedthe itemson its return. limit to theamount of thepenalty. partiesto theexchange, the identifying This ruledoesn'tapply if your partnershipis of the of exception" numbers transferor and (if known) withinthe"small partnership and International Boycotts the transferee, and the exchange date. doesn'telectto have thetax treatmentof . Every partnershipthathad operations in, or partnershipitems determined at the An exception to this ruleis made for sales relatedto,a boycottingcountry,company, or partnershiplevel. or exchanges of publicly traded partnership Jan 23, 2018 Cat. No. 11396N Department of the Treasury Internal Revenue Service Partner's Instructions for Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. (For Partner's Use Only) • section references are to the internal Revenue Code Box 15, code P is usedto report the new reportthe itemsshown on Schedule K-1 on unless otherwise noted· section45S creditreportedon Form your taxretum. 8994, Employer CreditforPaid Familyand Medical Leave. The amount of loss and deductionyou Future Developments • may claimon yourtax returnmay be less Box 16, Foreigntransactions,the been added. than theamount reportedon Schedule K-1. It For thelatestinformationabout followingnew codes have is thepartner's to consider responsibility and developments relatedto Schedule K-1(Form For foreigngross income sourced at the level: apply any applicablelimitations. See 1065) and the Partner's Instructionsfor partnership code D, section951A Limitationson Losses,Deductions, and Schedule K-1 (Form 1065),such as category;code E, foreign branch category. and at the Credits, for later, more information. legislation enacted aftertheywere Deductions allocated apportioned published,go to IRS.qov/Form1065. partnershiplevelto foreign source income: code K, section951A category;code L, lnCOnsistent Treatment of foreignbranch category. What's New |tems Other information:code U, section951A(c) Generally,you must reportpartnershipitems • (1)(A)testedincome; code foreign V, tested Qualifiedbusiness income deduction.For shown on yourSchedule K-1(and any inCOme taX; code W, section965 tax yearsbeginning after2017,individuals, attached the same way thatthe nfo9rma statements) estates,and trustsmay be entitled to a Partnershiptreatedthe itemson its return. 9onnew codes have been added fœ deduction of up to 20%of their qualified the business qualified income deduction: If the treatment on youroriginal or business income from a tradeor business. For more see section199A and code Z, section199A income;code AA, amended return with is inconsistent the information, section 199A W-2 wages; code AB, section partnership'streatment,or if the Pub. 535, Business Expenses. Also,see partnership 199A unadjusted basis;code AC, section was required to but has not filed a return,you Codes Z throughAD, Deduction for qualified 199A REIT qualified dividends; code AD, must Form file Noticeof Inconsistent business income, under Box 20. Other 8082, section 199A qualified PTP income· Treatment or Administrative Adjustment information. • Box 20, new code AE, excess taxable • In Part II, item K, the spaces were Request (AAR),with youroriginalor entry income, and code AF, excess business amended retum and to identify explain expanded to reflect beginningand ending any interestincome, have been added for (or to note thata partnership partner'sshare of liabilities. inconsistency • reportinglimitations on thededuction of returnhas not been filed). New box6c, Dividend has equivalents, business interest under section 163(j). been added to report section871(m) • Box 20,new code AG has been added to If youarerequiredto file Form 8082 but income • reporteach partner'sshare of thegross do not do so, youmay be subjectto the For t ox 11, Other income (loss)code F receiptsunder section59A(e). accuracy-relatedpenalty.This penaltyis in indicatessection951A GILTI incorne. additionto anytax thatresults from making yow amount & treatnient of theHen1 The followingcodes have been added or General |nStrUCtlOnS consistentwith changed of the as a result Tax and thatshown on the Cuts partnership'sreturn. Any deficiencythat Jobs Act • Purpose of Schedule K-1 resultsfrom making theamounts consistent Box 11, code G has been a