What Form 1065-X (2024) Is For
IRS Form 1065-X (2024), Amended Return or Administrative Adjustment Request (AAR), is used by partnerships to correct mistakes on a previously filed Form 1065 for the same tax year. It enables partnerships to correct reporting errors, such as inaccurate income, deductions, or credits, and ensures that partner information and ownership percentages are accurately reflected.
The form applies to partnership tax years beginning after January 1, 2023. Non-BBA partnerships file Form 1065-X as a traditional amended return, while partnerships under the Bipartisan Budget Act of 2015 (BBA) file it as an Administrative Adjustment Request (AAR). All submissions must be paper filed with the IRS service center that processed the original return.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see Form 1065-X: Amended Return or Administrative Adjustment Request (AAR) – A Complete Guide for 2024.
When You’d Use Form 1065-X
Partnerships use this form to fix errors or omissions discovered after filing their original return. Situations that require an amended return or AAR include:
- The partnership reported incorrect income or deductions.
- The ownership percentages or partner allocations were inaccurate.
- The depreciation schedules or credits were miscalculated.
- The IRS identified discrepancies that must be formally corrected.
A partnership must file Form 1065-X within three years of either the original due date of the return (not including extensions) or the date the return was filed—whichever is later.
If the IRS has already begun an audit by sending a Notice of Administrative Proceeding, the partnership cannot file an AAR. Any corrections must go through the audit process.
Key Rules or Details for 2024
Filing Rules and Form Versions
For tax years beginning on or after January 1, 2023, partnerships must use the August 2023 revision of Form 1065-X and follow the instructions issued in December 2024. Using an older version may cause delays in processing.
Most partnerships are automatically classified under BBA rules unless they properly elect to be classified under another provision.
- BBA partnerships must file AARs and follow centralized IRS procedures.
- Non-BBA partnerships may file amended returns and issue corrected Schedule K-1 forms.
Signature and Submission
All filings must be sent to the same IRS service center that processed the original return.
- For BBA partnerships, only the partnership representative (PR) or their designated individual may sign on behalf of the partnership.
- For non-BBA partnerships, any authorized partner may sign.
Partnerships required to e-file must not use Form 1065-X. They should instead file an amended Form 1065 electronically with Form 8082.
For complete details on wage reporting, withholdings, and unemployment tax filings, see our guide to Business Income Tax Forms.
Step-by-Step (High Level)
Step 1: Identify the Partnership Type
Determine whether the partnership is subject to BBA rules, TEFRA rules, or operates as a non-BBA partnership. The filing process depends on this classification.
Step 2: Gather Documentation
Collect the original return, all related schedules, and any records supporting the proposed corrections.
Step 3: Complete the Form
- Complete Part I to determine the partnership type and filing requirements.
- Use Part II to list all changes from the original return.
- Explain the reasons for the adjustments in Part V, including calculations.
Step 4: Calculate Imputed Underpayment (BBA Only)
If the partnership owes additional tax, calculate the imputed underpayment and attach Form 8980 if requesting any modification.
Step 5: Prepare Partner Statements
- BBA partnerships must complete Forms 8985 and 8986 for each partner.
- Non-BBA partnerships should issue amended Schedule K-1 forms.
Step 6: Submit Payment
If the partnership owes tax, payment must accompany the filing. Payments can be made electronically through EFTPS or by check labeled “BBA AAR Imputed Underpayment.”
Step 7: File and Notify Partners
Mail Form 1065-X with attachments to the same service center used for the original return. Send corrected forms or statements to partners on the same date.
Common Mistakes and How to Avoid Them
Many errors can delay processing or cause rejection. Partnerships can avoid issues by reviewing these common mistakes:
- Using an outdated form: Partnerships should always submit the 2023 revision to ensure the form matches current IRS requirements.
- Filing on paper when e-filing is required: Partnerships must file electronically if mandated to do so, as paper filings may be rejected.
- Confusing an amended return with an AAR: Filers should confirm whether they are submitting an amended return or an Administrative Adjustment Request and check the correct box in Part I.
- Missing or invalid signature: The form must be signed by an authorized representative of the partnership or a designated partner to be accepted.
- Missing the three-year filing deadline: Partnerships must file within three years of the original due date to ensure timely processing.
Careful preparation and review help ensure the return is accurate and processed without delay.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After submission, the IRS processes the amended return or AAR and updates partnership records.
- For non-BBA partnerships, the IRS updates partnership information, and partners may need to amend their individual returns to reflect corrections on revised Schedule K-1s.
- For BBA partnerships, the IRS processes any imputed underpayment and updates records. If the partnership elects to push out adjustments, each partner receives Form 8986 to report changes on their individual tax return using Form 8978.
Processing times vary but generally take several months. The IRS may contact the partnership for clarification or to request additional documentation. Interest and penalties may apply if additional tax is due.
FAQs
What is IRS Form 1065-X (2024) used for?
IRS Form 1065-X (2024) allows partnerships to correct partnership-related items from a previously filed original return. It applies to partnership tax years beginning after 2017 under the Bipartisan Budget Act centralized partnership audit regime.
How does an Administrative Adjustment Request (AAR) work?
An administrative adjustment request enables a BBA partnership to correct errors through its partnership representative, rather than having each partner file separately. This process adjusts partnership income, credits, and deductions at the partnership level.
Who can sign and file an AAR for a BBA partnership?
Only the designated partnership representative or authorized person may sign and file an administrative adjustment request AAR. If the partnership representative's revocation occurs, a new representative must be appointed before submitting the return to the IRS.
When is the deadline to file an amended return or AAR?
The tax deadline is generally three years from the later of the partnership’s original filing date or the due date for that partnership tax year. Late filings may result in delayed refunds, penalties, and interest.
What happens after filing Form 1065-X with the IRS?
After filing, the IRS reviews the amendment and may request additional information. Reviewed year partners may receive adjustments affecting their partner’s share of income, credits, and deductions for the partnership tax year under review.
Can partnerships e-file Form 1065-X?
No, partnerships cannot e-file this form. Form 1065-X must be submitted on paper to the same service center as the original form. Partnerships required to e-file must instead amend electronically using Form 8082.
How are imputed underpayments handled under the BBA regime?
Under the BBA regime, any imputed underpayment resulting from partnership adjustments is calculated and paid at the partnership level. Partnerships may request modifications or push adjustments out to reviewed year partners through approved IRS procedures.
For more resources on filing or understanding prior-year IRS forms, visit our Form Summaries and Guides Library.
