Central-South Central: Preparing Form 1065 – FULL DAY

Part 1: This session delivers a hands-on walkthrough of Form 1065, spotlighting key compliance updates and strategies essential for partnership return preparation.  From navigating Schedule K revisions to applying §743 bonus depreciation step-ups, we examine practical scenarios, penalties, and revocable elections.  This course also explores new filing thresholds, real-world applications for passive grouping disclosures, and recent IRS developments, including audit trends and penalty caps.  Participants will leave equipped to identify when a partnership return is required (even between spouses), eliminate late-filing risks, apply new guidance on Section 754 revocations, and interpret audit data through a compliance lens.

Objectives:

Determine when a business owned solely by two spouses must file a partnership return under federal rules

Apply proactive strategies to avoid late-filing penalties for Form 1065

Calculate bonus depreciation adjustments on partnership basis-step-ups under §743

Evaluate situations where a partnership may revoke a Section 754 election and assess the impact

Respond accurately to passive activity grouping questions on Form 1065 using applicable IRS guidance

Part 2: Recent changes to Form 1065 have significant implications for partnership compliance.  In Part 2 of our comprehensive series, we walk through the updated preparation process step-by-step – covering everything from CPAR opt-outs to rental property reporting.  This session delivers practical guidance on completing Schedules K-1, M-2, and Form 8825, and helps practitioners navigate audit risks, reporting thresholds, and self-employment tax exposure for LLC members.  Whether you’re refining existing workflows or training staff, this course equips tax professionals with the knowledge to confidently apply the latest rules and streamline return preparation for partnership returns.

Objectives:

Determine when a partnership is eligible to opt out of the Centralized Partnership Audit Regime (CPAR)

Report self-employment income accurately for members of LLC partnerships

Apply the small partnership exceptions to reduce or eliminate Form M-3 reporting requirements

Use the correct property type code of Form 8825 when preparing returns for single-family residences

Interpret the Tax Court’s decision regarding limited partner classifications and its impact on self-employment tax exclusions