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15874: 1065 - Tax and Payment Section (Drake18)


1065 Partnership

The first page of the 1065 has a new section for tax year 2018.

 

Starting in tax year 2018, Form 1065 has an additional section listed after the "Ordinary business income (loss)" line where the signature lines were in prior years. This section is labeled "Tax and payments" and according to the 1065 instructions is used to handle the following items:

  • Interest due under the look-back method for the completed contract method and the income forecast method.
  • Bipartisan Budget Act of 2015 (BBA) Administrative Adjustment Request (AAR) imputed underpayment.
  • Other taxes.
  • Refunds of overpayments.
  • Modification payment made under section 6225(c)(2).

In Drake18, relevant entries for this section will be located on the new TAX screen, under the General tab. For 2018 there is no way to make a payment or receive a refund of tax electronically through the software per IRS. The payment of the tax depends on which line the tax is reported. Depending on the type of tax and the required payment, it is possible that the partnership could have to write separate checks to remit payment since there are separate form attachments, payment types, and addresses listed for the different lines. There are no estimated payment requirements at this time.

Per the 1065 2018 Instructions, Tax and Payment section: 

"Line 23.  Interest due under the look-back method for completed long-term contracts.  For partnerships that aren't closely held, attach Form 8697 and a check or money order for the full amount, made payable to 'United States Treasury.'  Write the partnership's employer identification number (EIN), daytime phone number, and 'Form 8697 Interest' on the check or money order.

Line 24.  Interest due under the look-back method for property depreciated under the income forecast method.  For partnerships that aren't closely held, attach Form 8866 and a check or money order for the full amount, made payable to 'United States Treasury."  Writ the partnership's employer identification number (EIN), daytime phone number, and 'Form 8866 Interest' on the check or money order.

Line 25.  BBA AAR imputed underpayment.  Use this line if the partnership is filing an AAR electronically and chooses to pay the imputed underpayment.  For instructions on how to figure the imputed underpayment, see the Instructions for Form 8082.  Write the name of the partnership, tax identification number, tax year, 'Form 1065,' and 'BBA AAR Imputed Underpayment' on the payment.  Checks must be payable to 'United States Treasury' and mailed to Ogden Service Center, Odgen, UT 84201-0011.  Payments can be made by check or electronically.

Line 26.  Other taxes.  In a few instances, payments other than those listed above may have to be made with Form 1065.  Enter the amount on this line and attach a statement identifying the purpose of the payment.

Line 28.  Payment.  Enter any prepayments related to lines 23-26 above."

Below is a sample of this section:


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