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Specific Instructions

AAR, “Election under Section 1101(g)(4)”

Judicial review of an AAR (for returns

and attach a statement to the AAR with

subject to the TEFRA procedures or

Name and Address

the following information.

ELPs). If the IRS fails to act on an AAR,

The partnership's name, taxpayer

Print or type the legal name of the entity,

the TMP or PWA may file a petition for

identification number (TIN), and the

judicial review with the United States Tax

address, and EIN on the appropriate lines.

partnership tax year for which the election

Court, United States Court of Federal

Include the suite, room, or other unit

is being made.

Claims, or United States District Court.

number after the street address. If the

The name, TIN, address, and daytime

The TMP or PWA must file the petition

Post Office does not deliver mail to the

telephone number of the individual who

street address and the entity has a P.O.

before the date that is 2 years after the

signs the statement.

date the TMP or PWA filed the AAR, but

box, show the box number instead.

Language indicating that the

not until after the date that is 6 months

If the entity receives its mail in care of a

partnership is electing application of

from the date of such filing. The 2-year

third party (such as an accountant or

section 1101(c) of BBA for the partnership

period may be extended if the IRS and the

attorney), enter on the street address line

return for the eligible tax year.

TMP or PWA agree in writing. For more

“C/O” followed by the third party's name

The information required to properly

details, see sections 6228 and 6252.

and street address or P.O. box.

designate the partnership representative

AAR With Election Into the

as defined by section 6223 (as amended

If the entity's address is outside the

Centralized Partnership Audit

by BBA), which must include the name,

United States, or its possessions or

TIN, address, and daytime telephone

Regime Under BBA

territories, enter the information on the line

number of the partnership representative.

for “City or town, state, and ZIP code” in

The Bipartisan Budget Act of 2015 (BBA)

See Partnership Representative in the

the following order: city, province or state,

was enacted on November 2, 2015, and is

Form 1065 instructions.

and foreign country. Follow the foreign

generally effective for partnership tax

country's practice in placing the postal

The following representations must

years beginning after 2017. The BBA

code in the address. Do not abbreviate the

be made on the statement.

repealed the TEFRA partnership audit

country name.

The partnership is not insolvent and

rules and established the new centralized

does not reasonably anticipate becoming

partnership audit regime. Certain

Item A

insolvent before resolution of any

partnerships may elect to have the new

If the answer to item A is “Yes,” the

adjustment with respect to the partnership

centralized partnership audit regime apply

partnership return is not subject to the

tax year for which the election is being

to a return filed for an eligible tax year

TEFRA proceedings. You should proceed

made.

when filing an AAR under section 6227 (as

to item E and check the “Not subject to

The partnership has not filed, and does

amended by BBA). An eligible tax year is

TEFRA” box.

not reasonably anticipate filing, voluntarily

any tax period beginning after November

a petition for relief under title 11 of the

Items B Through E

2, 2015, and before January 1, 2018. A

United States Code.

partnership may not make this election

These items are used to determine if the

The partnership is not subject to, and

where:

partnership is subject to the rules for

does not reasonably anticipate becoming

An AAR has been filed on behalf of a

consolidated audit procedures (TEFRA

subject to, an involuntary petition for relief

TEFRA partnership under section 6227(c)

procedures).

under title 11 of the United States Code.

(prior to amendment by BBA), or

The partnership has sufficient assets,

An amended return of a nonTEFRA

Consolidated REMIC proceedings.

and reasonably anticipates having

partnership has been filed.

Generally, the tax treatment of REMIC

sufficient assets, to pay a potential

See Temporary Regulations section

items is determined at the REMIC level in

imputed underpayment with respect to the

a consolidated REMIC proceeding, rather

301.9100-22T(c)(4).

partnership tax year that may be

than in separate proceedings with

An AAR filed for an eligible tax year

determined under subchapter C of

individual residual interest holders. A

before January 1, 2018, will be treated as

chapter 63 of the Internal Revenue Code

REMIC subject to consolidated REMIC

an AAR filed on behalf of a TEFRA

as amended by BBA.

procedures will have checked the box on

partnership or as an amended return filed

A representation, signed under

item G on page 3 of its original Form 1066.

on behalf of a nonTEFRA partnership, as

penalties of perjury, that the individual

Items B and C

applicable. An AAR filed after January 1,

signing the statement is duly authorized to

2018, for an eligible tax year, without a

make the election described in Temporary

All partnerships (except ELPs) and

statement attached to the AAR on which

Regulations section 301.9100-22T and

REMICs ARE subject to TEFRA

the partnership makes the election into the

that, to the best of the individual's

partnership audit procedures unless the

centralized partnership audit regime, will

knowledge and belief, all of the

partnership or REMIC is subject to the

be treated as an AAR filed on behalf of a

information contained in the statement is

small partnership exception. See section

TEFRA partnership or as an amended

true, correct, and complete.

6231(a)(1)(B).

return filed on behalf of a nonTEFRA

The statement must be signed and

partnership, as applicable. An AAR filed

A small partnership is a partnership

dated by the TMP, as defined under

with respect to a 2018 short tax period

with 10 or fewer partners at all times

section 6231(a)(7) (prior to amendment by

return by a partnership that is subject to

during the year. All partners must be U.S.

BBA), and the applicable regulations, or

the centralized partnership audit regime

individuals and their estates, resident alien

an individual who has the authority to sign

must meet the requirements under section

individuals, or C corporations. If both

the partnership return for the tax year. The

6227 (as amended by BBA).

these conditions are met, check the “Yes”

fact that an individual dates and signs the

box for item B and item C.

The election cannot be made in this

statement making the election shall be

manner before January 1, 2018. Once

prima facie evidence that the individual is

Note. For making the small partnership

made, an election may only be revoked

authorized to make the election on behalf

determination, a husband and wife each

with the consent of the IRS.

of the partnership.

having their own partnership interest are

Making the election. To make the

considered one partner. An individual who

election, the partnership must write across

has passed away during the year and their

the top of the Form 1065X used to file the

estate are considered one partner.

Instructions for Form 1065X

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Instructions For Form 1065x - Amended Return Or Administrative Adjustment Request (Aar) - 2018 Page 3

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