1065 Disclosures about Owners

Form 1065 for the 2019 tax year includes a new required disclosure on Schedule K-1 of the tax identification number and name for any partner/member that is a disregarded entity.  Since it can often be time consuming to obtain this information, practitioners should work on obtaining this information from clients as soon as possible.

Certain other disclosures about the owners of a partnership or LLC taxed as a partnership were already required on Form 1065 in prior years, and these disclosures remain a requirement on the 2019 version of the form. 

For example, Schedule B-1, Information on Partners Owning 50% or More of the Partnership, requires the disclosure of the name, employer identification number, type of entity, country of origin and maximum ownership percentage for any entity that directly or indirectly owns 50% or more of the partnership or LLC. 

In addition, Schedule B-1 requires disclosure of the name, identification number, country of citizenship and maximum ownership percentage for any individual or estate that directly or indirectly owns 50% or more of the partnership or LLC. 

Practitioners should carefully review these disclosures, and make sure that they are updated for any changes of ownership that have occurred during the tax year.