8082 Instructions for Form 8082

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Instructions for Form 8082

Department of the Treasury
Internal Revenue Service

(Rev. January 2019)

For use with Form 8082 (Rev. September 2018)
Notice of Inconsistent Treatment or
Administrative Adjustment Request (AAR)

DRAFT AS OF
October 3, 2018

Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Form 8082 and
its instructions, such as legislation
enacted after they were published, go to
IRS.gov/Form8082.

Reminders

Bipartisan Budget Act. The Tax Equity
and Fiscal Responsibility Act of 1982
(TEFRA) generally applied to tax years
beginning before 2018. TEFRA was
repealed by the Bipartisan Budget Act of
2015 (BBA). BBA also repealed the
Electing Large Partnership (ELP) rules.
BBA created a new centralized
partnership audit regime effective for
partnership tax years beginning after 2017
unless the partnership elects to have the
new regime apply to a partnership return
filed for a tax year beginning after
November 2, 2015, and before 2018.
Election into BBA for tax years
beginning before 2018. Beginning
January 1, 2018, certain partnerships may
elect to have the new centralized
partnership audit regime apply to a return
filed for an eligible tax year when filing an
Administrative Adjustment Request
(AAR). See AAR with Election Into the
Centralized Partnership Audit Regime
under BBA for information on how to make
the election. An election can also be made
upon notification of an audit. See
Regulations section 301.9100-22 for
additional details.

General Instructions

Note. Unless otherwise noted, references
to sections 6221 through 6241 are to
Internal Revenue Code sections as
amended by BBA.

Purpose of Form
Notice of inconsistent treatment. 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
Oct 02, 2018

trust statement. However, there may be
reasons why you wish to report these
items differently. Use Form 8082 for this
purpose.
Use Form 8082 to notify the IRS of any
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, Schedule Q, or a foreign
trust statement from the foreign trust by
the due date for filing your return
(including extensions). However, for tax
years beginning before 2018, 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).

Administrative adjustment request
(AAR) under TEFRA. Form 8082 is also
used as an administrative adjustment
request to correct a previously filed return.
An AAR is:
• A request by the tax matters partner
(TMP) to correct items on the original
partnership return.
• A request by a TEFRA partner (other
than a partner in an electing large
partnership), 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
TEFRA partnership return.
Administrative adjustment request
(AAR) under the Bipartisan Budget Act
(BBA). BBA created a new centralized
partnership audit regime generally
effective for partnership tax years
beginning after 2017, replacing the
consolidated audit proceedings under
sections 6221 through 6234 enacted by
TEFRA. All partnerships with tax years
beginning after 2017 are subject to the
centralized partnership audit regime
unless they make a valid election under
section 6221(b). See section 6221(b) and
the Instructions for Form 1065 for
information on which partnerships are
eligible to make this election. For
purposes of these instructions (unless
otherwise noted), the centralized
partnership audit regime proceedings

Cat. No. 62051N

under sections 6221 through 6241 will be
referred to as BBA proceedings.

Definitions

Note. The consolidated audit
proceedings of sections 6221 through
6234 (prior to amendment by BBA) are
referred to as TEFRA proceedings and
partnerships that are subject to TEFRA
proceedings are referred to as TEFRA
partnerships. An AAR filed by the TMP of
the TEFRA partnership is a TEFRA AAR.
Any partner in a TEFRA partnership may
file an AAR using Form 8082. TEFRA
proceedings will not apply to partnerships
with tax years beginning after 2017. A
partnership with a tax year beginning
before 2018 that is not subject to TEFRA
proceedings is referred to as a nonTEFRA
partnership.

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.
Tax matters partner (TMP). If the
partnership is subject to the TEFRA
procedures, it can designate a partner as
the TMP for the tax year for which the
return is filed. The TMP is a general
partner (in most cases, the TMP must also
be a U.S. person) designated by the
partnership to represent the partnership in
the consolidated audit and litigation
proceedings under sections 6221 through
6234 (prior to amendment by BBA). The
designation is made by completing the
Designation of Tax Matters Partner
section on Form 1065 used for tax years
beginning before 2018.
For a limited liability company (LLC),
only a member manager of the LLC is
treated as a general partner. A member
manager is any owner of an interest in the
LLC who, alone or together with others,
has continuing exclusive authority to make
the management decisions necessary to
conduct the business for which the LLC
was formed. If there are no elected or
designated member managers, each
owner is treated as a member manager.

For details, see Treasury Regulations
section 301.6231(a)(7)-2.
BBA partnership. A partnership subject
to the centralized partnership audit regime
is a BBA partnership. All partnerships with
tax years beginning after 2017 are BBA
partnerships unless they make a valid
election out of the centralized partnership
audit regime. A partner in a BBA
partnership is referred to as a BBA
partner. An AAR filed by a BBA
partnership is referred to as a BBA AAR
and must be filed by the partnership
representative.

Schedule Q. A quarterly schedule
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.

• You are requesting an administrative
adjustment to correct a previously filed
partnership return. S corporations,
estates, and trusts cannot file an AAR (see
Who May Not File for details).
• You are a partner in a TEFRA
partnership (other than a partner in an
electing large partnership) or residual
interest holder in a REMIC requesting an
administrative adjustment to correct
pass-through items on your income tax
return.
• You are a partnership making an
election into the centralized partnership
audit regime under BBA for an eligible tax
year. See AAR with Election into the
Centralized Partnership Audit Regime
under BBA, later, for more information.

DRAFT AS OF
October 3, 2018

Partnership representative (PR). If the
partnership is subject to the centralized
partnership audit regime, section 6223
provides that the partnership must
designate a partner or other person with a
substantial presence in the United States
as the PR. The PR has the sole authority
to act on behalf of the partnership. If the
designated PR is an entity, the partnership
must also appoint a designated individual
to act on behalf of the entity PR. The
partnership and all partners are bound by
the actions of the PR in dealings with the
IRS.
NonBBA partnership. Under BBA,
certain partnerships with 100 or fewer
eligible partners for the tax year can elect
out of the centralized partnership audit
regime. Additional details regarding the
election out of the centralized partnership
audit regime can be found in the 2018
Instructions for Form 1065. A partnership
that elects out of the centralized
partnership audit regime is referred to as a
nonBBA partnership.

Partnership-related items. Under
section 6241(2)(B), a partnership-related
item is any item or amount with respect to
the partnership that is relevant in
determining the income tax liability of any
person, without regard to whether the item
or amount appears on the partnership's
return. This includes an imputed
underpayment and an item or amount
relating to any transaction with, basis in, or
liability of the partnership.
Review year pass-through partner. For
purposes of these instructions, under
BBA, a review year pass-through partner
is a pass-through entity that held an
interest in a BBA partnership at any time
during the reviewed year, which is the
partnership tax year to which the
partnership adjustment relates. For
example, if the BBA AAR is filed to make
an adjustment to income for the 2018 tax
year, 2018 is the reviewed year.
Schedule K-1. An annual schedule
reporting the partner's, shareholder's, or
beneficiary's share of income, deductions,
credits, etc., from a partnership, S
corporation, estate, or domestic trust.

Who Must File

Notice of inconsistent treatment.
Generally, file Form 8082 if any of the
following apply.
• You believe an item was not properly
reported on the Schedule K-1 you
received from the partnership, S
corporation, estate, or domestic trust, the
Schedule Q you received from the REMIC,
or the foreign trust statement you received
from the foreign trust.
• You believe an item shown on your
schedule or 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, enter “See
attached Form 8082.” If the correction
does not affect your tax return, no
amounts need to be entered on the
amended return if the Form 8082 item is
the only reason for filing the amended
return.
• 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.
If you do not notify the IRS that
you are reporting an item (Part I,
CAUTION
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 pass-through entity's return may be
assessed immediately. An inconsistent
item can exist on either your original or
amended return.

!

AAR under TEFRA. File Form 8082 if
any of the following apply.
-2-

AAR under the Bipartisan Budget Act
(BBA). File Form 8082 if you are the
partnership representative or designated
individual requesting an administrative
adjustment to correct a previously filed
partnership return on behalf of the
partnership.
When a partnership’s federal

TIP return is changed for any reason,

it may affect its state return. For
more information, contact the state tax
agency to which the state return is filed.

Who May Not File

Do not file Form 8082:
• If you are a REMIC and want to correct
items on the original REMIC return.
Instead, file Form 1065X.
• For any amount of loss, deduction, or
credit from Schedule K-1, Schedule Q, or
the 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 of a deceased partner, or a C
corporation.
° The partnership did not have an
election in effect under section
6231(a)(1)(B)(ii) (prior to amendment
by BBA) for the tax year to have the
consolidated audit rules apply.
• A partner in a partnership subject to the
procedures put in place under BBA may
not file an AAR to adjust the items of the
partnership.
• If you are a shareholder in an S
corporation, except as a notice of
inconsistent treatment when the
shareholder's return is not consistent with
the return of the S corporation. Form 8082
Instructions for Form 8082

cannot be filed by a shareholder to
request an administrative adjustment to
his or her tax return to correct S
corporation items. Instead, the
shareholder must file an amended income
tax return.
• 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. Form 8082 cannot be filed by a
beneficiary or owner to request an
administrative adjustment to his or her tax
return to correct 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 one
residual interest holder 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 a C corporation.
° The REMIC did not have an election
in effect under section 6231(a)(1)(B)
(ii) (prior to amendment by BBA) for
the tax year to have the consolidated
audit rules apply.
• If you are a partner in an electing large
partnership for tax years before 2018.
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.

6225(d)(2) or, if earlier, the date payment
of the IU is made.
• Any penalty, addition to tax, or
additional amount that is determined at the
partnership level as if that BBA
partnership had been an individual subject
to tax under chapter 1 for the reviewed
year and the IU were an actual
underpayment (for understatement) for
that year for purposes of part II of
subchapter A or chapter 68.

PR, or electing large partnership must file
it with the service center where the original
return was filed.

Election to apply the alternative to
payment of the IU. If a BBA partnership
elects the alternative to payment of the IU
under sections 6227(b)(2) and 6226(c),
interest shall be determined:
• At the partner level,
• From the due date of the return for the
tax year to which the increase is
attributable (determined by taking into
account any increases attributable to a
change in tax attributes for a tax year
under section 6226(b)(2), until the date of
payment and,
• At the section 6621(a)(2)
underpayment rate.

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:
1. 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
2. In the case of a TEFRA partnership,
before a notice of final partnership
administrative adjustment for that year is
mailed to the TMP or tax matters person;
or, in the case of an ELP, before the
mailing to the partnership of a notice of
partnership administrative adjustment with
respect to that year; or
In the case of a BBA partnership, before a
notice of an administrative proceeding
with respect to the tax year is mailed
under section 6231.
3. In the case of a partnership that is a
partner in a BBA partnership and filing an
amended return for purposes of BBA
partnership modification under section
6225(c)(2) in the time period specified
under section 6225(c).

If a partner 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 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.

DRAFT AS OF
October 3, 2018

Interest and Penalties

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.

Interest and penalties applicable to imputed underpayment (IU). Except
when the partners elect to take into
account the adjustments, BBA partnership
reviewed year interest and penalties are
the following.
• In the case of a BBA partnership
adjustment for a reviewed year (the
partnership tax year to which the
adjustment relates), the interest computed
with respect to any IU is the interest that
would be determined under chapter 67 for
the period beginning on the day after the
return due date for the reviewed year and
ending on the return due date for the
adjustment year as defined under section
Instructions for Form 8082

Protective TEFRA AAR. Generally, a
protective AAR is a request for credit or
refund based on current litigation or
expected changes in tax law or other
legislation. The TMP or PWA files a
protective AAR when the right to a refund
is contingent on future events and may not
be determinable until after the period for
filing an AAR has expired. Protective
AARs are subject to AAR statutes set forth
in sections 6227, 6228, and 6229 (prior to
amendment by BBA). If you are a TMP
filing on behalf of a partnership, the
petition period described in section 6228
(prior to amendment by BBA) can be
extended by using Form 9248, Agreement
to Extend the Time to File a Petition for
Adjustment by the Tax Matters Partner
With Respect to Partnership Items.
A protective AAR must clearly state
that it is a protective AAR, alert the IRS to
the essential nature of the adjustment, and
specify the line item to be protected.

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.

A partnership return or a REMIC return
is generally due by the 15th day of the 3rd
month following the close of the
partnership's or REMIC's tax year. The tax
year of a REMIC always ends on
December 31.
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
(prior to amendment by BBA) and 6251 for
details.

What To Attach

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 the corrected amount involves an item of
income, deduction, or credit that must be
supported with a schedule, statement, or
form, attach the appropriate schedule,
statement, or form to Form 8082. Include
the entity's name and employer
identification number (EIN) on any
attachments. See the Instructions for Form
1065, 1065-B, or 1066 (as applicable) for
a list of forms that may be required.

If a TMP, PR, or electing large
partnership files Form 8082 as an AAR on
behalf of the pass-through entity, the TMP,

If the attachments needed to support
the corrected amount include copies of
forms or schedules from previously filed

How and When To File

-3-

tax returns, write at the top of each
previously filed form or schedule, “Copy
Only—Do Not Process.”
A BBA partnership must attach a
schedule to the Form 8082 that supports
the position(s) reported on the Form 8082
that result in an imputed underpayment as
described in section 6225(b) as well as
provide support for any modification of the
imputed underpayment that is allowed
under section 6225(c) as applied to a BBA
AAR under section 6227(b)(1).

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.

applicable. An AAR filed after January 1,
2018, for an eligible tax year without a
statement attached to the AAR on which
the partnership makes the election into the
centralized partnership audit regime will
be treated as an AAR filed on behalf of a
TEFRA partnership or as an amended
return filed on behalf of a nonTEFRA
partnership, as applicable. An AAR filed
with respect to a 2018 short tax period
return by a partnership that is subject to
the centralized partnership audit regime
must meet the requirements under section
6227.

DRAFT AS OF
October 3, 2018

A request for an electronically
deposited refund of $1 million or more
should be submitted with Form 8302,
Electronic Deposit of Tax Refund of $1
Million or More.

Judicial Review of an AAR (for
returns subject to the TEFRA
procedures or ELPs)

If the IRS fails to act on a TEFRA or an
ELP AAR, the TMP or PWA may file a
petition for judicial review with the United
States Tax Court, United States Court of
Federal Claims, or United States District
Court. The TMP or PWA must file the
petition before the date that is 2 years
after the date the TMP or PWA 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 the TMP or PWA agree in writing. For
more details, see sections 6228 (prior to
amendment by BBA) and 6252.

Special Rules for Electing
Large Partnerships for Tax
Years Beginning Before 2018

An electing large partnership may file an
AAR to adjust partnership items. However,
a partner may not file an AAR. Generally,
the electing large partnership has two
choices for handling the adjustment.
1. 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 that
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, or
2. 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

How to file. 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(4) 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.

AAR with Election Into the
Centralized Partnership Audit
Regime under BBA

The Bipartisan Budget Act of 2015 (BBA)
was enacted on November 2, 2015, and is
generally effective for partnership tax
years beginning after 2017. The BBA
repealed the TEFRA partnership audit
rules and established the new centralized
partnership audit regime. Certain
partnerships may elect to have the new
centralized partnership audit regime apply
to a return filed for an eligible tax year
when filing an administrative adjustment
request (AAR) under section 6227. An
eligible tax year is any tax period
beginning after November 2, 2015, and
before January 1, 2018. Only partnerships
can file an AAR under section 6227. A
partnership may not make this election
where:
• An AAR has been filed on behalf of a
TEFRA partnership under section 6227(c)
(prior to amendment by BBA); or
• An amended return of a nonTEFRA
partnership has been filed. See
Regulations section 301.9100-22(c)(4).
An AAR filed for an eligible tax year
before January 1, 2018, will be treated as
an AAR filed on behalf of a TEFRA
partnership or as an amended return filed
on behalf of a nonTEFRA partnership, as
-4-

The election cannot be made in this
manner before January 1, 2018. Once
made, an election may only be revoked
with the consent of the IRS.

Making the election. To make the
election, the partnership must write across
the top of Form 1065 used to file the AAR,
“Election under Section 1101(g)(4)” and
attach a statement to the AAR with the
following information.
• The partnership's name, taxpayer
identification number, and the partnership
tax year for which the election is being
made.
• The name, taxpayer identification
number, address, and daytime telephone
number of the individual who signs the
statement.
• Language indicating that the
partnership is electing application of
section 1101(c) of BBA for the partnership
return for the eligible tax year.
• The information required to properly
designate the partnership representative
as defined by section 6223, which must
include the name, taxpayer identification
number, address, and daytime telephone
number of the partnership representative.
(See Partnership Representative in the
Form 1065 instructions.)
• The following representations must be
made on the statement:
1. The partnership is not insolvent and
does not reasonably anticipate becoming
insolvent before resolution of any
adjustment with respect to the partnership
tax year for which the election is being
made;
2. The partnership has not voluntarily
filed, and does not reasonably anticipate
filing, a petition for relief under title 11 of
the United States Code;
3. The partnership is not subject to,
and does not reasonably anticipate
becoming subject to, an involuntary
petition for relief under title 11 of the
United States Code; and
4. The partnership has sufficient
assets, and reasonably anticipates having
sufficient assets, to pay a potential
imputed underpayment with respect to the
partnership tax year that may be
determined under subchapter C of
Instructions for Form 8082

chapter 63 of the Internal Revenue Code
as amended by BBA.
• A representation, signed under
penalties of perjury, that the individual
signing the statement is duly authorized to
make the election described in
Regulations section 301.9100-22 and that,
to the best of the individual's knowledge
and belief, all of the information contained
in the statement is true, correct, and
complete.
• Signed and dated by the tax matters
partner, as defined under section 6231(a)
(7) (prior to the amendment by BBA), and
the applicable regulations, or an individual
who has the authority to sign the
partnership return for the tax year. The
fact that an individual dates and signs the
statement making the election shall be
prima facie evidence that the individual is
authorized to make the election on behalf
of the partnership.

of the partnership for the tax year of BBA
AAR, and file with the AAR, a statement of
the partner's share of any adjustment to
income, gain, loss, deduction, or credit
indicated by the AAR. See section 6226(b)
for information on how the adjustments
are taken into account by the partners.
The words “Statement required to be
furnished by a partnership electing the
alternative to payment of an imputed
underpayment” should be written at the
top of each statement.
The statement must also include the
following.
• Name, correct TIN, and address of the
partnership.
• Name and correct TIN of the partner.
• Current or last address of the partner
that is known to the partnership.
• The partner’s share of the items being
adjusted as originally reported to the
partner.
• Date the statement is furnished to the
partner.
• The partnership tax year to which the
adjustments relate.

the way you reported it on your return as
originally filed or as you later amended it.
In 2018, an AAR can be filed by
partnerships subject to TEFRA
proceedings (TEFRA AAR), partnerships
subject to BBA proceedings (BBA AAR),
and Electing Large Partnerships (ELP).

DRAFT AS OF
October 3, 2018

Imputed underpayment. Partnerships
filing an AAR with an election into the
centralized partnership audit regime under
BBA will need to determine if the
partnership adjustment as defined by
section 6241(2) results in an imputed
underpayment as described in section
6225(b). See section 6225(c), excluding
paragraphs (2), (7), and (8), for guidance
regarding the modification rules that may
apply to an imputed underpayment. If
modification is applied to an imputed
underpayment, the AAR must include
detailed documentation to support all
modifications made to the imputed
underpayment. If the partnership
adjustment results in an imputed
underpayment, the partnership must
report and pay the imputed underpayment
and any interest and penalty associated
with the imputed underpayment at the time
the AAR is submitted. See section 6233
for information regarding interest and
penalties associated with an imputed
underpayment. If modification did not
apply to the imputed underpayment, the
imputed underpayment will be figured
using the highest rate in effect under
section 1 or 11 for the tax year to which
the adjustment relates. Write “BBA
Imputed Underpayment” in the bottom
margin of page 1 of Form 1065 and
include the imputed underpayment and
any interest or penalties related to the
imputed underpayment.
If the partnership adjustment did not
result in an imputed underpayment or if
the partnership elects to have its partners
take the adjustments into account instead
of paying the imputed underpayment, see
section 6226 (but without regard to
subsection (c)(2)(C) thereof) for
information on how the adjustment is
taken into account. If the partnership
elects to have the partners take the
adjustments into account, the partnership
will be required to furnish to each partner
Instructions for Form 8082

Filing an AAR electronically. If the
AAR is filed electronically, the partnership
uses Form 1065, U.S. Return of
Partnership Income, and Form 8082,
Notice of Inconsistent Treatment or
Administrative Adjustment Request
(AAR), and includes the statement
“Election under Section 1101(g)(4)”, in
accordance with an election made under
section 1101(g)(4) of BBA.

Specific Instructions

Specific instructions for most of the lines
have been provided. Lines that are not
explained 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 and provide the information there.
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.

Part I
Line 1
Check box (a) if you believe an item was
not properly reported on the
Schedule K-1, Schedule Q, or foreign trust
statement you received, or you have not
received 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 requesting a change in
the amount or treatment of any item from

-5-

For partnership tax years beginning
before 2018 (unless electing into
BBA).
TEFRA AAR. The consolidated audit
proceedings of sections 6221 through
6234 (prior to amendment by BBA) are
referred to as TEFRA proceedings.
Partnerships that are subject to TEFRA
proceedings are referred to as “TEFRA
partnerships.” An AAR filed by the TMP of
the TEFRA partnership is a TEFRA AAR.
Any partner in a TEFRA partnership can
also file an AAR; however, the form
prescribed for a partner AAR is a Form
8082. TEFRA proceedings will not apply
to partnerships with tax years beginning
after 2017. A partnership with a tax year
beginning before 2018 that is not subject
to TEFRA proceedings is referred to as a
“nonTEFRA partnership.”
ELP AAR. The ELP procedures were
repealed for tax years beginning after
2017. However, ELPs filing an AAR in
2018 for a tax year that began before 2018
will still use the 2018 revision of Form
8082.
For partnership tax years beginning
after 2017 and partnerships electing
into BBA for tax years beginning after
November 2, 2015, and before January
1, 2018.
BBA AAR. All partnerships with tax
years beginning after 2017 are subject to
the centralized partnership audit regime
unless an eligible partnership makes a
valid election under IRC section 6221(b)
to elect out of the centralized partnership
audit regime. Partnerships electing into
BBA for tax years beginning after
November 2, 2015, and before January 1,
2018, are also subject to the centralized
partnership audit regime. Partnerships
that are subject to the centralized
partnership audit procedures of sections
6221 through 6241 are referred to as
“BBA partnerships.” A partnership with a
tax year beginning after 2017 that is not
subject to BBA proceedings because it
has made a valid election under IRC
section 6221(b) is referred to as a
“nonBBA partnership.” An AAR filed by a
BBA partnership is a BBA AAR.
Item A. Complete Form 8979 in cases
of revocations in accordance with the
instructions for Form 8979 and attach it to
the AAR.
Item B. A BBA partnership may file an
AAR with respect to one or more

partnership related items for any tax year.
BBA partnerships filing an AAR will need
to determine if the partnership
adjustments result in an IU. The BBA
partnership should consider all available
guidance issued by the IRS in making a
determination of whether or not the AAR
results in an imputed underpayment.

Under section 6226(b)(4), if the
pass-through partner is electing to
account for the adjustments by furnishing
statements to its partners, the
pass-through partner must provide
statements to each partner by the
extended due date of the BBA AAR
partnership's return for the year the AAR
was filed (“the extended due date”).
Review year pass-through partners must
also file with the IRS, prior to the extended
due date, a partnership adjustment
tracking report that includes the required
information. The review year pass-through
partner should consider all available
guidance issued by the IRS to ensure that
the statements provided to the partners
and to the IRS are complete.

AAR Push Out.” Checks must be payable
to United States Treasury. If making an
electronic payment, choose the payment
description “BBA AAR Push Out” from the
list of payment types. The applicability of
penalties and interest was discussed
above in these instructions. The payment
should also include any applicable interest
or penalties.

DRAFT AS OF
October 3, 2018

Item C. If the adjustments contained in
the BBA AAR do result in an IU, the
partnership must pay the imputed
underpayment at the same time the AAR
is filed. However, under section 6227(b)
(2), the partnership can elect to have its
reviewed year partners take the
adjustments into account. This alternative
to payment election is described in section
6226(a)(2). If the partners take the
adjustments into account, the partnership
is no longer liable for the IU. If the
adjustments in the BBA AAR do not result
in an IU, then the partnership must follow
the rules for the reviewed year partners to
take into account the adjustments. If the
adjustments do not result in an IU or if the
BBA partnership makes a valid election
under section 6227(b)(2), the partnership
must furnish a statement to each reviewed
year partner that identifies the partner's
share of any adjustment to a partnership
related item included in the BBA AAR. A
copy of the statements furnished to the
reviewed year partners must also be filed
with the IRS.
If making this election, the BBA
partnership that is filing an AAR should
consider all available guidance issued by
the IRS to ensure that the statement
provided to the partners and to the IRS is
complete.

Item D. Each reviewed year partner is
required to take into account its share of
adjustments requested in a BBA AAR if
the partnership adjustments result in an
imputed underpayment and the
partnership makes the alternative to
payment election discussed under Item C.
Additionally, each reviewed year partner is
required to take into account its share of
any adjustments requested in a BBA AAR
that do not result in an imputed
underpayment. The determination of
whether or not an adjustment results in an
imputed underpayment amount is
discussed in Item B for this section.
The partnership is required to furnish
the reviewed year partner with a statement
of its share of the BBA AAR adjustments.
The statement signed by the partnership
representative attesting to the
partnership's compliance with this
requirement is included under Item D for
this section. The BBA partnership should
consider all available guidance issued by
the IRS to ensure that the statement
provided to the partners and to the IRS is
complete.

Note. Pass-through partner adjustments
that do not result in an imputed
underpayment are taken into account by
the pass-through partner in the tax year of
the pass-through partner that includes the
date the required payment is made, or, if
no payment is required, the date the
statement described is furnished to the
pass-through partner.

Item E. Under section 6227(b)(1), the
partnership may modify the IU resulting
from adjustments reported in a BBA AAR
in accordance with the provisions under
section 6225(c), disregarding the
provisions under paragraphs (2), (7), and
(9). Any modification made to the IU under
section 6227(b)(1) must be disclosed and
fully explained in documentation included
with the AAR. The BBA partnership should
consider all available guidance issued by
the IRS in making a determination that a
modification to the IU applies.
Note. If the partnership chooses the
alternative to payment procedures, the
modifications to the IU are disregarded
and are not included on the statements
provided to the partners.
Special instructions for review year
pass-through partners that receive a
statement related to an AAR. A review
year pass-through partner that receives a
statement from a BBA AAR partnership
(directly or indirectly) can choose to make
a payment or furnish statements to its
partners. If making a payment, the
pass-through partner should use the
adjustments shown on the statement it
received to calculate an imputed
underpayment using procedures the BBA
partnership uses to calculate an imputed
underpayment under section 6225. The
pass-through partner should include a
detailed payment calculation, a copy of
the AAR related statement it received, and
a check or an electronic confirmation
number. Information to include on the
payment is the name of the partnership,
Form 1065, the tax identification number
of the partnership, the tax year and “BBA
-6-

TEFRA partnerships requesting substituted return treatment.
Note. If you are a TMP filing a TEFRA
AAR on behalf of the partnership and
requesting substituted return treatment,
attach a statement to Form 8082
indicating that you are requesting
substituted return treatment.
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 or residual interest
holders based on the amended return or
assess any resulting tax without a
deficiency or entity level proceeding. See
section 6227(c)(1) (prior to amendment by
BBA).
If the request is not treated as a
substituted return, the IRS may credit or
refund any overpayment of tax to the
partners 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. See section
6227(c)(2) (prior to amendment by BBA).
In either case, if you are a TMP filing an
AAR electronically, file an amended Form
1065, but do not enter any amounts on the
form itself. Attach Form 8082 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.
Attach amended Schedules K-1
showing the corrected amounts for each
partner.

Lines 2 through 6. Generally, the
information for these lines can be found on
Schedule K-1, Schedule Q, or foreign trust
statement.
Note. Complete these lines if you are
completing Form 8082 as a Notice of
Inconsistent Treatment or as a TEFRA
AAR.

Instructions for Form 8082

Part II
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 (such as 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:
1. 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
2. The pass-through entity did not file
a return or give you a Schedule K-1,
Schedule Q, or foreign trust statement.

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).”
• A BBA partnership must attach a
schedule to Form 8082 that supports the
determination of whether the adjustments
reported on Form 8082 resulted in an
imputed underpayment as described in
section 6225(b). For a BBA AAR under
IRC section 6227(b)(1), the BBA
partnership must also attach support for
any modification of the imputed
underpayment under section 6225(c).

three should be reflected on Form 1065,
page 1, line 25.
Under section 6232(b), partnerships
filing a BBA AAR that have adjustments
that result in an IU, and do not elect the
alternative to payment of the IU under
section 6227(b)(2), must pay the amount
shown on Form 1065, page 1, line 25.
Information to include on the payment
made by check is the name of the
partnership, Form 1065, the tax
identification number of the partnership,
the tax year, and “BBA AAR Imputed
Underpayment.” Checks must be payable
to United States Treasury and included
with the BBA AAR. If making an electronic
payment, choose the payment description
“BBA AAR Imputed Underpayment” from
the list of payment types.

DRAFT AS OF
October 3, 2018

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
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
or statement, or if you are reporting items
that you believe were omitted, enter zero
in column (c).

Part III

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

Instructions for Form 8082

Imputed Underpayment (IU) Under
the Centralized Partnership Audit
Regime
Section 6227(b)(1) provides that if the
BBA AAR results in an imputed
underpayment (IU), the partnership must
pay the IU at the same time that the AAR
is filed. BBA AARs that result in an IU as
determined under section 6225(b) should
include documentation with the AAR that
supports the computation of the IU
amount. The BBA partnership should
consider all available guidance issued by
the IRS when computing the IU amount.
The IU amount should be reported on
Form 1065, page 1, line 25.
Under section 6227(b)(1), the
partnership may modify the IU resulting
from adjustments reported in a BBA AAR
in accordance with the provisions under
section 6225(c), disregarding the
provisions under section 6225(c) (2), (7),
and (9). Any modification made to the IU
under section 6227(b)(1) must be
disclosed and fully explained in
documentation included with the AAR. If
modifications are applied to the IU,
complete and attach Form 8980. If
applicable, the modified IU amount should
be reported on Form 1065, page 1,
line 25.
The applicability of penalties and
interest are discussed above. The BBA
AAR should include documentation that
supports the determination of penalties
and interest associated with the BBA
AAR. A payment made with the Form
1065 should detail the portion of the
payment that is for the IU or modified IU,
the portion that is for interest and the
portion that is for penalties. The total of all

-7-

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 burden for
individual taxpayers filing this form is
approved under OMB control number
1545-0074 and is included in the
estimates shown in the instructions for
their individual income tax return. The
estimated burden for all other taxpayers
who file this form is shown below.
Recordkeeping . . . . . . . . .

4 hr., 18 min.

Learning about the law or
the form . . . . . . . . . . . . . .

1 hr., 23 min.

Preparing and sending the
form to the IRS . . . . . . . . .

1 hr., 31 min.

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.