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In addition, if the ELP or REMIC

startup day. The day so designated is then

Generally, anyone who is paid to

requests that the IRS electronically

the startup day, and all interests are

prepare Form 1065X must do the

deposit a refund of $1 million or more,

treated as issued on that day.

following.

attach Form 8302, Electronic Deposit of

Sign the return in the space provided

Where To File

Tax Refund of $1 Million or More.

for the preparer's signature.

Fill in the other blanks in the “Paid

Form 1065X must be filed with the service

Who Must Sign

Preparer Use Only” area of the return. A

center where the original return was filed.

paid preparer cannot use a social security

NonTEFRA Partnerships. One partner

number in the “Paid Preparer Use Only”

Definitions

or limited liability company (LLC) member

box. The paid preparer must use a

must sign the return. Form 1065X is not

preparer tax identification number (PTIN).

Tax Matters Partner (TMP). If the

considered to be a return unless it is

Give the partnership or REMIC a copy

partnership is subject to the TEFRA

signed. When a return is made for a

of the return in addition to the copy to be

procedures, it can designate a partner as

partnership by a receiver, trustee, or

filed with the IRS.

the TMP for the tax year for which the

assignee, the fiduciary must sign the

return is filed. The TMP is a general

return instead of the partner or LLC

Note. A paid preparer may sign original or

partner (in most cases, the TMP must also

member. Returns and forms signed by a

amended returns by rubber stamp,

be a U.S. person) designated by the

receiver or trustee in bankruptcy on behalf

mechanical device, or computer software

partnership to represent the partnership in

of a partnership must be accompanied by

program.

TEFRA proceedings. The designation is

a copy of the order or instructions of the

made by completing the Designation of

Interest and Penalties

court authorizing the signing of the return

Tax Matters Partner section on page 3 of

or form.

Form 1065.

Interest. Interest is charged on taxes not

Additionally, a REMIC may designate a

TEFRA Partnerships. The Tax Matters

paid by the due date, even if an extension

tax matters person in the same manner in

Partner (TMP) must sign the amended

of time to file is granted. Interest is also

which a partnership may designate a TMP

return. See Tax Matters Partner, later, for

charged on penalties imposed for

the definition of a TMP.

under Regulations section 301.6231(a)

negligence, fraud, substantial valuation

(7)-1. When applying that section, treat all

misstatements, substantial

ELPs. The Partner with Authority (PWA)

holders of a residual interest in the REMIC

understatements of tax, and reportable

must sign the amended return. See

as general partners. The designation may

transaction understatements. The interest

Partner with Authority, later, for the

be made by completing the Designation of

is charged from the due date (including

definition of a PWA.

Tax Matters Person section on page 3 of

extensions) to the date of payment. The

REMICs with a startup day after No-

Form 1066.

interest charge is figured at a rate

vember 9, 1988. For these REMICs,

determined under section 6621.

For an LLC, a member of the LLC is

Form 1065X may be signed by any person

treated as a partner and a

Late payment penalty. The penalty for

who could sign the return of the entity in

member-manager is treated as a general

not paying the tax when due is usually

the absence of the REMIC election. Thus,

partner. A member-manager is any owner

of 1% of the unpaid tax for each month or

the return of a REMIC that is a corporation

of an interest in the LLC who, alone or

part of a month that the tax remains

or trust would be signed by a corporate

together with others, has continuing

unpaid. The penalty cannot exceed 25%

officer or a trustee, respectively. For

exclusive authority to make the

of the unpaid tax.

REMICs with only segregated pools of

management decisions necessary to

assets, the return would be signed by any

Other penalties. Penalties can also be

conduct the business for which the LLC

person who could sign the return of the

imposed for negligence, substantial

was formed. If there are no elected or

entity owning the assets of the REMIC

understatements of tax, reportable

designated member-managers, each

under applicable state law.

transaction understatements, and fraud.

owner is treated as a member-manager.

See sections 6662, 6662A, and 6663.

REMICs with a startup day before No-

For details, see Regulations section

vember 10, 1988. These REMICs may

301.6231(a)(7)-2.

Protective AARs

elect to apply the rules for REMICs with a

Partner with Authority (PWA). Each

startup day after November 9, 1988 (as

Generally, a protective AAR is a request

ELP must designate a partner (or other

described in Regulations section

for credit or refund based on current

person) as the PWA who shall have the

1.860F-4(c)(2)(iii)). Otherwise, Form 1066

litigation or expected changes in tax law or

sole authority to act on behalf of the

must be signed by a residual interest

other legislation. The TMP or PWA files a

partnership. See section 6255(b)(1). If the

holder or, as provided in section 6903, by

protective AAR when the right to a refund

partnership fails to designate a PWA, the

a fiduciary as defined in section 7701(a)

is contingent on future events and may not

IRS can select any partner to serve as the

(6) who is acting for the REMIC and who

be determinable until after the period for

partner with such authority. The PWA has

has furnished adequate notice as

filing an AAR has expired. Protective

the authority to file an AAR on behalf of

described in Regulations section

AARs are subject to AAR statutes set forth

the partnership. The PWA does this by

301.6903-1(b).

in sections 6227, 6228, and 6229. If you

filing Form 1065X.

In the prior paragraph, the term “startup

are a TMP filing on behalf of the

day” means any day selected by a REMIC

Paid Preparer's

partnership, the petition period described

that is on or before the first day on which

in section 6228 can be extended by using

Information

interests in such REMIC are issued.

Form 9248, Agreement to Extend the

Otherwise, “startup day” is the day on

If a partner or an employee of the

Time to File a Petition for Adjustment by

which the REMIC issued all of its regular

partnership or REMIC completes Form

the Tax Matters Partner With Respect to

and residual interests. However, a

1065X, the “Paid Preparer Use Only”

Partnership Items.

sponsor may contribute property to a

space should remain blank. In addition,

REMIC in exchange for regular and

A protective AAR must clearly state

anyone who prepares Form 1065X but

residual interests over any period of 10

that it is a protective AAR, alert the IRS to

does not charge the partnership or REMIC

consecutive days and the REMIC may

the essential nature of the adjustment, and

should not complete this section.

designate any one of those 10 days as the

specify the line item to be protected.

Instructions for Form 1065X

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Instructions For Form 1065x - Amended Return Or Administrative Adjustment Request (Aar) - 2012 Page 2

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