What IRS Form 1065X (2012) Is For
IRS Form 1065X (2012) is used when a partnership needs to correct errors on a previously filed partnership return and report accurate partnership income, deductions, credits, or other collaboration-related items. Partnerships use this amended return to provide corrected information to the IRS, so partners receive reliable details about their partners' share of pass-through items.
For a step-by-step overview of partnership return amendments and IRS adjustment rules, visit our IRS Form Help Center.
When You’d Use IRS Form 1065X (2012)
A partnership generally uses IRS Form 1065X (2012) when it must correct information reported on a previously filed form.
- Correcting items on a previously filed partnership return: This applies when the partnership identifies incorrect amounts, misstatements, or missing details that require an amended partnership return.
- Filing an administrative adjustment request (AAR): This occurs when a partnership subject to administrative adjustment request procedures must correct partnership-related items by filing an administrative adjustment request (AAR).
- Fixing partner allocation or partner’s share issues: This applies when updates are needed to correct a partner’s share of income, deductions, or credits reported on an amended form.
- Responding to incorrect statements from other entities: This occurs when corrected information from a source partnership or other pass-through entity requires adjustments requested on IRS Form 1065X (2012).
- Making adjustments after the extended due date: This applies when the original due date or the extended due date has passed, and corrective action must be formally filed.
- Addressing incorrect elections or late elections: This applies when the partnership needs to correct inconsistent treatment or make certain modifications to elections occurring before the original filing deadline.
Key Rules or Details for IRS Form 1065X (2012)
Several vital requirements apply when partnerships file IRS Form 1065X (2012) under both non-BBAA partnerships and BBA partnerships.
- Paper filing requirements: IRS Form 1065X (2012) must be submitted through paper filing unless the partnership was required to file electronically, in which case the return must follow the same filing method used for the original return.
- Signature rules for BBA partnerships: Partnerships subject to the Bipartisan Budget Act must have the partnership representative or designated individual sign the form for the centralized partnership audit regime.
- Signature rules for non-BBA partnerships: Non-BBA partnerships may use a general partner to sign, unless an administrative proceeding requires a specific person to sign.
- Correct form version for tax years beginning in specific periods: Partnerships must use the correct IRS revision that matches tax years starting in the applicable period to ensure that amended returns are accepted.
- Rules for reviewed-year partners: Partnerships under the BBA regime must issue the required statement to reviewed-year partners, rather than preparing an amended Schedule K-1.
- Limitations for Tiered Partnerships and Pass-Through Partners: Tiered partnerships and entities with direct partners must follow special requirements for statements furnished under administrative adjustment requests.
- Restrictions on filing an AAR solely for administrative updates: A partnership cannot file an administrative adjustment request solely to change a PR designation or to make other administrative updates without reporting actual partnership-related item adjustments.
Use our IRS Account Transcript Service to confirm the IRS processing status and maintain up-to-date partnership records.
Step-by-Step (High Level)
- Gather original filings and identify all adjustments: The partnership must review the original return and determine each adjustment year change that affects partnership-related items.
- Complete all columns on Form 1065X: The partnership must enter original amounts, adjustments, and corrected figures so the IRS can clearly verify the adjustments requested.
- Provide detailed explanations in the AAR process: The partnership must explain the reason for each change when filing an AAR or an amended partnership return. Hence, the IRS understands the basis for the adjustments.
- Attach all supporting schedules and statements: The partnership must attach any schedules or forms that relate to the adjustments to ensure the IRS receives correct information.
- Prepare Schedules K-1 or statements for reviewed-year partners: Partnerships not under the BBA regime must issue amended Schedules K-1, while BBA partnerships must furnish the required statement to reviewed-year partners.
- Determine whether to pay an imputed underpayment or push out adjustments: BBA partnerships must decide whether to pay the imputed underpayment or elect to postpone adjustments to pass through to partners.
- File the complete package with the IRS: The partnership must submit the complete package to the IRS service center where the original return was filed.
Common Mistakes and How to Avoid Them
Several errors can cause delays when partnerships file IRS Form 1065X (2012).
- Using Form 1065X when the partnership must file electronically: Avoid this issue by confirming whether the original return was filed electronically so the amendment uses the same filing method.
- Using the incorrect form version for the applicable tax year: Prevent processing delays by selecting the correct revision that matches the tax year of the previously filed partnership return.
- Failing to obtain the correct signature under the BBA regime: Ensure the partnership representative or designated individual signs the form when required under the Budget Act of 2015.
- Providing vague or incomplete explanations for adjustments: Submit detailed explanations to avoid the IRS issuing a notice requesting clarification.
- Forgetting to send amended schedules or required statements to partners: Review whether the partnership must send amended Schedules K-1 for non-BBA partnerships or provide the necessary statement furnished to reviewed-year partners.
- Sending the amended form to the wrong IRS service center: Confirm the correct IRS service center that processed the original return to prevent delays in handling the amended form.
What Happens After You File
After the partnership files IRS Form 1065X (2012), the IRS reviews the adjustments and updates partnership records based on the corrective action requested. Processing may take several months, depending on the complexity of the adjustments and the tax year involved. Partners or pass-through partners may need to update their own returns if changes affect their partner’s share of income or deductions.
Partnerships subject to the BBA regime may owe an imputed underpayment unless they elect to push out adjustments. A tax adviser can help determine whether additional filings are required for the applicable tax year. Need expert help with partnership amendments or IRS adjustment requests? Start your case review to get one-on-one guidance from our specialists.
FAQs
Can IRS Form 1065X (2012) be filed electronically?
IRS Form 1065X (2012) cannot be filed electronically because the IRS requires paper filing unless the partnership was required to file electronically for the original return.
When must a partnership file an administrative adjustment request instead of an amended partnership return?
A partnership must file an administrative adjustment request when it is subject to the centralized partnership audit regime and must correct partnership-related items through the AAR process.
What happens if adjustments result in an imputed underpayment?
If adjustments create an imputed underpayment, a BBA partnership must either pay the amount at the partnership level or elect to push out the adjustments to the reviewed-year partners.
Do reviewed-year partners receive amended Schedules K-1?
Reviewed-year partners do not receive amended Schedules K-1 under the BBA regime because they receive a statement furnished under administrative adjustment request rules instead.
