Request for Section 754 Revocation (Form 15254)

An Internal Revenue Code (IRC) Section 754 election allows a partnership to adjust the basis of the property within a partnership under IRC 734(b) and 743(b) when one of the two triggering events occur: 1) a distribution of partnership property or 2) certain transfers of a partnership interest. These adjustments can only be made if the partnership has made an election under IRC Section 754. Once an election is made, it can be revoked with permission of the Commissioner. A partnership wishing to revoke the election must first file a request on Form 15254, Request for Section 754 Revocation, no later than 30 days after the close of the partnership year for which the revocation is intended to take effect. Form 15254 must state the reason(s), as outlined in 26 CFR 1.754-1(c), for requesting the revocation. Partnerships, partners, and their representatives will need to access the form from IRS.gov to complete and submit the form along with the required documents.

The latest form for Request for Section 754 Revocation (Form 15254) expires 2027-04-30 and is listed under ICR 202312-1545-002.