The IRS this week posted and released an updated 2018 instructions for Form 1065, removing a requirement to provide the taxpayer identification number (TIN) for the partnership’s representative (and the designated individual, if applicable). See Form 1065, Schedule B.
Filers need to rely on the updated Form 1065 instructions [PDF 751 KB] in filing Form 1065, U.S. Return of Partnership Income, and need to note the changes described on the first page of the instructions (changes that the IRS reports will be incorporated into the next revision of the instructions for Forms 1065 and 1066):
Question: Must taxpayers show the full taxpayer identification numbers (TINs) of the partnership representative and designated individual on the Form 1065, U.S. Return of Partnership Income, and Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, filed with the IRS?
Answer: On Form 1065 and Form 1066, under Designation of Partnership Representative, taxpayers may enter all 0s (example: 00-0000000 or 000-00-0000) for the TIN of the partnership representative and designated individual (if applicable). A preparer tax identification number (PTIN) or centralized authorization file (CAF) number may not be used as a TIN to designate a partnership representative or designated individual.
The following text that appears on the 2018 instructions for Form 1065 is no longer valid, according to the new version of the instructions:
Taxpayer identification numbers (TINs) of partnership representatives and designated individuals. The full TINs of the partnership representative and designated individual must be shown on the Form 1065 filed with the IRS. However, these TINs may be truncated on the copies of Form 1065 which the partnership furnishes to others, such as its partners.
Notwithstanding, the change to the Form 1065 instructions, the partnership representative (and designated individual, if applicable) must have a U.S. TIN in order to have “a substantial presence in the United States,” as required by section 6223, and to be eligible to serve as the partnership representative (or designated individual) under Reg. section 301.6223-1(b)(2).
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.KPMG International Cooperative (“KPMG International”) is a Swiss entity.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.