amended return

[ardi600]

i understand you can amend a return up to three years after the due date of the original return for a refund. what if there is no refund and it to correct some information. for example, to amend a 1065 to correct the basis of each partner. Is there a limit if the amendment is not for a refund?

[DaveinTexas]

I'll throw my hat in the ring

i understand you can amend a return up to three years after the due date of the original return for a refund. what if there is no refund and it to correct some information. for example, to amend a 1065 to correct the basis of each partner. Is there a limit if the amendment is not for a refund?

I don't think a 1065 amended return would be necessary. As far as I know the basis calculation for each partner is not a required attachment when filing a 1065 with the IRS. My point is the IRS would have no idea what each partner's basis is and as long as the previous year returns for each partner is unaffected by the basis correction I see no need to stir the pot.

I suppose the same could be said for a balance sheet correction for a 1065 that isn't required to be attached.

[S T]

Addressing only Partnerships ---I have asked this same question on Form 1065 and some Distribution issues and Partner Basis, and what the discussions arrived at were,

If the proper income/expenses reported and no material effect, and as long as the Distributions for Partners did NOT exceed their partnership basis, make the correction going forward and do not file an Amended return.

I have one or two, so I have made complex notes, and kept in file and then provided the same to the partners, made the necessary corrections on the next Tax filing of 1065.

Not sure if this is correct procedure, but that is how I have been proceeding.

Would welcome other viewpoints and suggestions and/or criticism

Sandy

[taxea]

Basis of partners is for the convenience of the partners and perhaps the preparer. Both above posts are correct in saying no 1040X needs to be done. I would also agree that, if the basis is being kept as a part of the return the adjustments could be made the following year or you could go into the year the error was made and correct it there before everything is transferred to the new year. I would prefer to make the corrects on the year the error occurred rather than wait for the next year. But....as far as taxes are concerned it truly doesn't matter unless you are changing the percentage of ownership which would probably change the income/expenses on the K-1 and for which a 1040X would apply.