IRS Eliminates TIN Disclosure Requirement for Partnership Representatives and Designated Individuals

The IRS has revised the partnership tax return (Form 1065), the REMIC tax return (Form 1066), and related instructions to no longer require the partnership representative and designated individual to include their taxpayer identification numbers (TINs) on the returns. 

The centralized partnership audit regime, which is effective for tax years beginning after 2017, replaces the concept of “tax matters partner” with “partnership representative” and requires any entities acting as partnership representative to appoint a “designated individual” to act on their behalf.  Very generally, a partnership representative is a partnership’s or REMIC’s liaison with the IRS in the case of a tax audit.

The 2018 forms of partnership and REMIC tax returns required the partnership representative and any designated individual to include their TINs on the return.  Many market participants balked at this requirement.

The IRS has issued a supplement to these forms indicating that “taxpayers may enter all 0s (example: 00-0000000 or 000-00-0000) for the [TIN] of the partnership representative and designated individual (if applicable).”  

Partnership representatives and designated individuals must still have U.S. TINs to be eligible to serve in those capacities.  However, the supplement should address certain privacy concerns that market participants had expressed with the new regime.

 

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