Form 8082

[MarkCTX]

Client is partner in a partnership and receives timely K-1 from the partnership. However, the client disagrees with the treatment of some items stated on the K-1. So the client files Form 8082 (Inconsistent Treatment) with his timely filed tax return. Then the partnership amends its return and issues amended K-1's to all the partners. Again the client disagrees with the new treatment of the items for the same year but there is no change in the client's tax liability or the way he would report the items. Must the client send in a second Form 8082 for that same year even though there is no change in the tax picture for the client? More than 10 partners, so that exception does not apply. The Form 8082 instructions do not cover this scenario.

Thanks for any help.

Mark C.

[Roland Slugg]

I infer from your post that the changed items/amounts on the amended K-1 are the same items that your client disagreed with on the original K-1. If so, then I would advise the client not to file an amended return of his own in this case. I would, however, advise him to document the new differences with a memo of some kind.

I'd also be curious to know what kinds of items your client disagreed with. I also wonder if he has good documentation and/or justification for his difference of opinion. If you'd like to elaborate, I'm sure some here would like to read more.

[MarkCTX]

I think you are on point. I see no value in amending or filing a separate additional Form 8082. Thanks for your comments.

Mark C.

[Nashville]

Meaningless Amendment

I see no value in amending or filing a separate additional Form 8082.

I agree there is no dollar value, but I do believe that under the "theory of accuracy" there should still be some record to define the items that the taxpayer disagrees. The partner's tax liability doesn't change, but even if his basis changes, it is worth filing an "amended" 8082 if there is such a thing.

The other side of the argument: If you send in an "amended" 8082 what is the IRS expected to do with it? Are you creating an action by piling on another 8082, or are you just redefining what your differences may be? Since there is no guidance from the IRS, there's no telling what could happen.

It sounds very much like the tax matters partner reissued Schedule K Form 1065 and the related K-1s just to stop this partner from creating a donnybrook and dragging in the IRS. They probably figgured if they gave this guy a K-1 which wouldn't cause a tax liability, he'd shut up.