The BBA, which generally is effective for partnership tax years beginning after Dec. 2020- 23 (see the sidebar, 'Relief for Eligible BBA Partnerships for 20,' at the end of this article). For the most part, the discussion here focuses on the standard procedures for making adjustments rather than the special rules adopted in Rev. 2 For more AICPA resources on the BBA, see the AICPA's Partnership Audit and Adjustment Rules page, available at Special rules apply to 20 partnership returns because of the COVID- 19 crisis.

The present discussion is not in- depth and does not cover, for instance, partnerships needing to take corrective action for certain late elections. The procedures may change as the IRS gains more experience in this area. The information presented here is based on tax forms, instructions, and other guidance issued by the IRS (including informal comments) that are available as of this writing. The purpose of this article is to provide partnerships a guide to the various filing procedures and tax forms to use to modify a previously filed Form 1065.

In addition to providing new rules for partnership examinations, the BBA altered the procedures for partnerships to make adjustments to a previously filed partnership return. Return of Partnership Income, must be mindful of the changes brought about by the Bipartisan Budget Act (BBA) of 2015, 1 which created a new centralized partnership audit regime. Partnerships needing to modify a previously filed Form 1065, U.S.

Special rules govern making adjustments to BBA partnership returns for 20, under Rev.

A higher-tier partnership may need to follow special procedures for making adjustments when a lower-tier partnership's return is modified.

The IRS has issued new forms for taxpayers to use when revising a return through an AAR.

As a best practice, every partnership should consider filing an extension request so that, if necessary, it can easily revise a previously filed return up to its extended due date using a superseding return.

Any partnership can modify a tax return whose deadline has not yet passed by simply submitting a superseding return.

Eligible partnerships that validly elect out of the BBA can still change a previous partnership return merely by filing an amended return and do not need to submit an AAR.

Partnerships subject to the BBA centralized partnership audit rules ordinarily must submit a filing called an administrative adjustment request (AAR) to revise a previous tax return.

The Bipartisan Budget Act (BBA) of 2015 changed how partnerships make adjustments to previously filed partnership returns.

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