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                                                                                                        Department of the Treasury
                                                                                                        Internal Revenue Service
Instructions for Form 8082

(Rev. January 2024)

For use with Form 8082 (Rev. 10-2023)
Notice of Inconsistent Treatment or
Administrative Adjustment Request (AAR)

Section references are to the Internal Revenue Code                          an audit. See Regulations section 301.9100-22 for 
unless otherwise noted.                                                      additional details.
Contents                                                              Page   Increased research credit reported by a BBA partner-
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1  ship. If an increased research credit is reported by a BBA 
General Instructions  . . . . . . . . . . . . . . . . . . . . . . . . .   1  partnership, the BBA partnership doesn’t file an amended 
Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . .         1  return. Instead, the BBA partnership must file an AAR and 
                                                                             attach the following five items of information to that AAR.
Definitions     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Who Must File       . . . . . . . . . . . . . . . . . . . . . . . . . .   3  1. Identify all the business components to which the 
                                                                             section 41 research credit relates for that tax year.
How and When To File            . . . . . . . . . . . . . . . . . . . .   5
                                                                             2. For each business component, identify all research 
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . .   7
                                                                             activities performed.
Part I—General Information . . . . . . . . . . . . . . . . .              7
                                                                             3. Name the individuals who performed each research 
Part II—Inconsistent or Administrative 
                                                                             activity.
      Adjustment Request (AAR) Items . . . . . . . . . . .                9
Part III—Explanations         . . . . . . . . . . . . . . . . . . . .     12 4. The information each individual sought to discover.
Figuring the IU     . . . . . . . . . . . . . . . . . . . . . . . . .     12 5. The total qualified employee wage expenses, total 
                                                                             qualified supply expenses, and total qualified contract 
                                                                             research expenses for the claim year. This may be done 
Future Developments                                                          using Form 6765, Credit for Increasing Research 
For the latest information about developments related to                     Activities.
Form 8082 and its instructions, such as legislation                          As part of the AAR process, the BBA partnership will 
enacted after they were published, go to IRS.gov/                            also submit Form 8985, Pass-Through 
Form8082.                                                                    Statement—Transmittal/Partnership Adjustment Tracking 
                                                                             Report, and Form 8986, Partner’s Share of Adjustment(s) 
What’s New                                                                   to Partnership-Related Item(s), to the IRS and send Forms 
                                                                             8986 to its partners. The BBA partnership isn’t required to 
Part I, line 1. Item C2 has been added to Part I to 
                                                                             provide the five items of information again on Forms 8985 
indicate whether a BBA AAR has adjustments that don't 
                                                                             and 8986. The BBA partners don’t need to attach the five 
result in an imputed underpayment.
                                                                             items of information to their original returns to which their 
Reminders                                                                    Forms 8986 are attached. For more information, see 
                                                                             Research Credit Claims (Section 41) on Amended 
Bipartisan Budget Act of 2015 (BBA).                BBA created a            Returns Frequently Asked Questions at IRS.gov/
new centralized partnership audit regime generally                           businesses/corporations/research-credit-claims-
effective for partnership tax years beginning after 2017.                    section-41FAQ.
The Tax Equity and Fiscal Responsibility Act of 1982 
(TEFRA) generally applied to tax years beginning before 
2018. BBA repealed TEFRA and the electing large                              General Instructions
partnership (ELP) rules. Consequently, former ELPs are                       Unless otherwise noted, references to sections 6221 
now treated as other partnerships under the BBA regime.                      through 6241 are to Internal Revenue Code sections as 
Although BBA repealed the ELP rules for partnership                          amended by BBA and are referred to as “BBA 
tax years beginning after 2017, and although Form                            proceedings.”
1065-B and its instructions are obsolete for tax years 
beginning after 2017, Form 1065-B is referred to in these                    Purpose of Form
instructions to assist former ELPs filing amended returns.                   Notice of inconsistent treatment. If you’re a partner in 
Election into BBA for tax years beginning before                             a TEFRA or BBA partnership, an S corporation 
2018. Certain partnerships may elect to have the new                         shareholder, a beneficiary of an estate or trust, an owner 
centralized partnership audit regime apply to a return filed                 of a foreign trust, or a residual interest holder in a real 
for an eligible tax year when filing an AAR. See AAR With                    estate mortgage investment conduit (REMIC), you must 
Election Into the Centralized Partnership Audit Regime                       generally report items consistent with the way they were 
Under BBA, later, for information on how to make the                         reported by the partnership to the IRS on Schedule K-1, 
election. An election can also be made upon notification of                  Schedule K-3, Form 8986 (issued with a BBA AAR), 

Dec 26, 2023                                                        Cat. No. 62051N

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Schedule Q, and/or a foreign trust statement. However, 2017 are subject to the centralized partnership audit
there may be reasons why you wish to report these items regime unless they make a valid election under section
differently. Use Form 8082 for this purpose. 6221(b). See section 6221(b) and the Instructions for
Form 1065 for information on which partnerships are
Note. A partner is bound to finally determined eligible to make this election.
adjustments on Form 8986 resulting from a BBA
partnership audit and may not use Form 8082 to report the Definitions
items differently.
TEFRA partnership. The consolidated audit
Use Form 8082 to notify the IRS of any inconsistency proceedings of sections 6221 through 6234 (prior to
between your tax treatment of an item and the way the amendment by BBA) are referred to as “TEFRA
pass-through entity treated and reported the same item on proceedings”; partnerships that are subject to TEFRA
its return. Also use the form to notify the IRS if you didn’t proceedings are referred to as “TEFRA partnerships.” An
receive Schedule K-1, Schedule Q, and/or a foreign trust AAR filed by the TMP of the TEFRA partnership is a
statement from the foreign trust by the due date for filing TEFRA AAR. Any partner in a TEFRA partnership may file
your return (including extensions). Additionally, based on an AAR using Form 8082. TEFRA proceedings won’t
the instructions for Schedule K-2, if the pass-through apply to partnerships with tax years beginning after 2017.
entity was required to provide a Schedule K-3 but didn’t,
use Form 8082 to notify the IRS of this. However, for tax NonTEFRA partnership. A partnership with a tax year
years beginning before 2018, don’t file Form 8082 as a beginning before 2018 that isn’t subject to TEFRA
partner in an ELP. Instead, you must report all partnership proceedings and didn't elect into BBA for that tax year
items in a manner consistent with the way the partnership beginning after November 2, 2015, and before January 1,
reported them on Schedule K-1 (Form 1065-B), Partner's 2018, is referred to as a “nonTEFRA partnership.”
Share of Income (Loss) From an Electing Large Pass-through entity. A partnership (including an ELP), S
Partnership. corporation, estate, trust, or REMIC.
AAR under TEFRA. Form 8082 is also used if you’re Item. Any item of a partnership, S corporation, estate,
filing an AAR electronically to correct a previously e-filed trust, or REMIC required to be taken into account for the
Form 1065, U.S. Return of Partnership Income. An AAR is: pass-through entity's tax year by the partners,
• A request by the tax matters partner (TMP) to correct shareholders, beneficiaries, owners, or residual interest
items on the original partnership return; holders of that pass-through entity.
• A request by a TEFRA partner (other than a partner in
an ELP), or residual interest holder, to correct Tax matters partner (TMP). If the partnership is subject
pass-through items on that person's income tax return; or to the TEFRA procedures, it can designate a partner as
• A request by an ELP to correct items on the original the TMP for the tax year for which the return is filed. The
TEFRA partnership return. TMP is a general partner (in most cases, the TMP must
also be a U.S. person) designated by the partnership to
Protective TEFRA AARs. Generally, a protective AAR is represent the partners in the consolidated audit and
a request for credit or refund based on current litigation or litigation proceedings under sections 6221 through 6234
expected changes in tax law or other legislation. The TMP (TEFRA proceedings). The designation is made by
or partner with authority (PWA) files a protective AAR completing the Designation of Tax Matters Partner section
when the right to a refund is contingent on future events on Form 1065 used for tax years beginning before 2018.
and may not be determinable until after the period for filing Additionally, a REMIC may designate a tax matters
an AAR has expired. Protective AARs are subject to AAR person in the same manner in which a partnership may
statutes set forth in sections 6227, 6228, and 6229 (prior designate a TMP under Regulations section 301.6231(a)
to amendment by BBA). (7)-1. When applying that section, treat all holders of a
If you're a TMP filing on behalf of the partnership, the residual interest in the REMIC as general partners. The
petition period described in section 6228 (prior to designation may be made by completing the Designation
amendment by BBA) can be extended by using Form of Tax Matters Person section on page 3 of Form 1066,
9248, Agreement to Extend the Time to File a Petition for U.S. Real Estate Mortgage Investment Conduit (REMIC)
Adjustment by the Tax Matters Partner With Respect to Income Tax Return, for tax years beginning before 2018.
Partnership Items. A protective AAR must clearly state For a limited liability company (LLC), a member of the
that it is a protective AAR, alert the IRS to the essential LLC is treated as a partner and a member-manager is
nature of the adjustment, and specify the line item to be treated as a general partner. A member-manager is any
protected. owner of an interest in the LLC who, alone or together with
AAR under BBA. Use Form 8082 if the partnership others, has continuing exclusive authority to make
representative (PR) (on behalf of the partnership) is filing management decisions necessary to conduct the
an AAR electronically to adjust a previously e-filed Form business for which the LLC was formed. If there are no
1065. Also refer to the Instructions for Form 1065. elected or designated member-managers, each owner is
BBA created a new centralized partnership audit treated as a member-manager. For details, see
regime generally effective for partnership tax years Regulations section 301.6231(a)(7)-2.
beginning after 2017, replacing the consolidated audit BBA partnership. A partnership subject to the
proceedings under sections 6221 through 6234 enacted centralized partnership audit regime is a BBA partnership.
by TEFRA. All partnerships with tax years beginning after All partnerships with tax years beginning after 2017 are

2 Instructions for Form 8082 (Rev. Jan. 2024)

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BBA partnerships unless they make a valid election out of BBA AAR is filed to make an adjustment to income for the
the centralized partnership audit regime. A partner in a 2022 tax year, 2022 is the reviewed year.
BBA partnership is referred to as a “BBA partner.” An AAR
Schedule K-1. An annual schedule reporting the
filed by a BBA partnership is referred to as a “BBA AAR”
partner's, shareholder's, or beneficiary's share of income,
and must be filed by the PR.
deductions, credits, etc., from a partnership, S
Partnership representative (PR). If the partnership is corporation, estate, or domestic trust.
subject to the centralized partnership audit regime,
Schedule K-2. An extension of Form 1065, Schedule K,
section 6223 provides that the partnership must designate
used to report items of international tax relevance from the
a partner or other person with a substantial presence in
operation of a partnership.
the United States as the PR who shall have the sole
authority to act on behalf of the partnership. If the Schedule K-3. An extension of Schedule K-1 (Form
designated PR is an entity, the partnership must also 1065) generally used to report to partners their share of
appoint a designated individual (DI) to act on behalf of the the items reported on Schedule K-2.
entity PR. The partnership and all partners are bound by Schedule Q. A quarterly schedule reporting the residual
the actions of the PR in dealings with the IRS under BBA. interest holder's share of taxable income or net loss from
Partner with authority (PWA). Each ELP must the REMIC.
designate a partner (or other person) as the PWA who Form 8985, Pass-Through Statement—Transmittal/
shall have the sole authority to act on behalf of the Partnership Adjustment Tracking Report. Form 8985
partnership. See section 6255(b)(1) (prior to amendment is used to summarize and transmit Forms 8986 (by an
by BBA). If the partnership fails to designate a PWA, the audited partnership, a partnership filing an AAR, or a
IRS can select any partner to serve as the partner with pass-through partner) in situations where the partners are
such authority. The PWA has the authority to file an AAR taking into account the adjustments. Form 8985 is also
on behalf of the partnership. The PWA does this by filing used to report payments made and related calculations by
Form 8082. a pass-through partner, if applicable. See the instructions
NonBBA partnership. Under BBA, certain partnerships for these forms for further information.
with 100 or fewer eligible partners for the tax year can Form 8986, Partner’s Share of Adjustment(s) to Part-
elect out of the centralized partnership audit regime. For nership-Related Item(s). Form 8986 was created for
additional information, see the Instructions for Form 1065. partnerships to show each partner’s share of adjustments
A partnership that elects out of the centralized partnership to PRI as a result of a BBA audit or BBA AAR for situations
audit regime is referred to as a “nonBBA partnership.” where the partners are taking into account the
Partnership-related items (PRIs). For BBA adjustments.
partnerships, under section 6241(2)(B), a PRI is any item Foreign trust statement. Any of the following annual
or amount with respect to the partnership that is relevant statements furnished by a foreign trust to its owners or
in determining the income tax liability of any person, beneficiaries.
without regard to whether the item or amount appears on • Foreign Grantor Trust Owner Statement.
the partnership's return. This includes an imputed • Foreign Grantor Trust Beneficiary Statement.
underpayment (IU) and an item or amount relating to any • Foreign Nongrantor Trust Beneficiary Statement.
transaction with, basis in, or liability of the partnership.
Adjustment year. For BBA partnerships, the adjustment Who Must File
year is the partnership tax year in which: Notice of inconsistent treatment. Generally, file Form
• An adjustment pursuant to the decision of a court in a 8082 if any of the following apply.
proceeding brought under section 6234, such decision • You believe an item wasn’t properly reported on the
becomes final; Schedule K-1 or Schedule K-3 you received from the
• An AAR is filed under section 6227; or partnership, or on a Form 8986 received from an AAR
• A notice of final partnership adjustment is mailed under partnership (but not an audited partnership), S
section 6231 or, if the partnership waives the limitations corporation, estate, or domestic trust; the Schedule Q you
on assessments under section 6232(b), the waiver is received from the REMIC; or the foreign trust statement
executed by the IRS. you received from the foreign trust.
Reviewed year. For BBA partnerships, the reviewed year • You believe an item shown on your schedule or
is the partnership’s tax year to which a partnership statement is incorrect but it isn’t an item that otherwise
adjustment relates. has to be reported on your tax return. For example, if you
believe that the percentage shown as your ownership of
Reporting year. Reporting year is the partner’s tax capital at the end of the year wasn’t properly reported on
year(s) that includes the date the AAR partnership Schedule K-1, file Form 8082 to report this, even though
furnished Forms 8986 to its partners. you aren’t otherwise required to report that percentage on
Reviewed year pass-through partner. For purposes of your tax return. If you discover this kind of inconsistency
these instructions, under BBA, a reviewed year after filing your original return, file an amended return to
pass-through partner is a pass-through entity that held an report it. In the space provided on the amended return for
interest in a BBA partnership at any time during the writing explanations, enter “See attached Form 8082.” If
reviewed year, which is the partnership tax year to which the correction doesn’t affect your tax return, no amounts
the partnership adjustment relates. For example, if the

Instructions for Form 8082 (Rev. Jan. 2024) 3

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need to be entered on the amended return if the Form            ° Each partner was either an individual (other than a 
8082 item is the only reason for filing the amended return.     nonresident alien) or an estate of a deceased partner, 
• The pass-through entity hasn’t filed a tax return or given    or a C corporation.
you a Schedule K-1, Schedule Q, or foreign trust                ° The partnership didn’t have an election in effect 
statement by the time you're required to file your tax return   under section 6231(a)(1)(B)(ii) (prior to amendment by 
(including extensions), and there are items you must            BBA) for the tax year to have the TEFRA consolidated 
include on your return.                                         audit rules apply.
• If the pass-through entity didn’t provide you               • If you're a partner in a partnership with a tax year 
Schedule K-3, and it was required to do so according to       beginning after December 31, 2017, that has an election 
the instructions for Schedule K-2.                            out of BBA in effect pursuant to section 6221(b).
        If you don't notify the IRS that you're reporting an  • If you’re a BBA partnership, you may not file an AAR 
                                                              solely for the purpose of changing the PR. See the 
CAUTION deficiency (including any late filing or late payment 
  !     item (Part I, line 1, box a) inconsistently, any      Instructions for Form 8979, Partnership Representative 
penalties applicable to the deficiency) that results from an  Revocation, Designation, and Resignation, for more 
adjustment to make your amount or other treatment of the      information.
item consistent with the amount or treatment of the item      • You may not file a BBA AAR after the prescribed time to 
on the pass-through entity's return may be assessed           do so (see How and When To File, later).
immediately. An inconsistent item can exist on either your    • If you’re a BBA partnership that has received a notice of 
original or amended return.                                   administrative proceeding, you may not file an AAR.
                                                              • If you’re a partner and the BBA partnership in which 
AAR under TEFRA.   File Form 8082 if any of the               you’re an investor has received a notice of administrative 
following apply.                                              proceeding, a Form 8082 with respect to inconsistent 
• You’re requesting an administrative adjustment to           treatment of partnership items from that BBA partnership 
correct a previously filed partnership return for a TEFRA     can’t be filed.
partnership. S corporations, estates, and trusts can’t file   • A partner may not file an AAR on behalf of the BBA 
an AAR (see Who May Not File below for details).              partnership in which it’s a partner unless doing so is in its 
• You’re a partner in a TEFRA partnership (other than a       capacity as the PR for that partnership.
partner in an ELP) or residual interest holder in a REMIC     • If you’re a shareholder in an S corporation, except as a 
requesting an administrative adjustment to correct            notice of inconsistent treatment when the shareholder's 
pass-through items on your income tax return.                 return isn’t consistent with the return of the S corporation. 
                                                              Form 8082 can’t be filed by a shareholder to request an 
AAR under BBA.   File Form 8082 if you're the PR or DI 
                                                              administrative adjustment to their tax return to correct S 
requesting an administrative adjustment to correct a 
                                                              corporation items. Instead, the shareholder must file an 
previously filed partnership return on behalf of the BBA 
                                                              amended income tax return.
partnership.
                                                              • If you’re a beneficiary of an estate or domestic trust, or a 
        When a partnership’s federal return is changed for    beneficiary or an owner of a foreign trust, except as a 
TIP     any reason, it may affect its state return. For more  notice of inconsistent treatment when the beneficiary's or 
        information, contact the state tax agency with        owner's return isn’t consistent with the return of the estate 
which the state return is filed.                              or trust. Form 8082 can’t be filed by a beneficiary or owner 
                                                              to request an administrative adjustment to their tax return 
Who May Not File                                              to correct estate or trust items. Instead, the beneficiary or 
Don't use Form 8082 to file a notice of inconsistent          owner must file an amended income tax return.
treatment or an AAR if any of the following apply.            • If you're a residual interest holder and your REMIC had 
• If you’re a REMIC and want to correct items on the          no more than one residual interest holder at any one time 
original REMIC return. Instead, file Form 1065-X.             during the tax year.
• For any amount of loss, deduction, or credit from           • If you're a residual interest holder in a REMIC that at 
Schedule K-1, Schedule K-3, Schedule Q, Form 8986, or         any time during the tax year beginning prior to January 1, 
the foreign trust statement that you don't report on your     2018, had more than one residual interest holder; and
return because the amount is otherwise limited by law           ° Each residual interest holder was either an individual 
(such as a loss limited by the at-risk or passive activity      (other than a nonresident alien), an estate, or a C 
rules).                                                         corporation; and
• If you’re a partner, and all five of the following elements   ° The REMIC didn't have an election in effect under 
apply.                                                          section 6231(a)(1)(B)(ii) (prior to amendment by BBA) 
  ° The tax year of the partnership began prior to              for the tax year to have the TEFRA consolidated audit 
  January 1, 2018.                                              rules apply; and
  ° The partnership didn’t make an early election into          ° The REMIC didn't have an election in effect pursuant 
  BBA.                                                          to section 1101(g)(4) for the tax year to early elect into 
  ° Your partnership had no more than 10 partners at            BBA.
  any one time during the tax year. A married couple          • If you're a residual interest holder in a REMIC with a tax 
  (and their estates) are treated as one partner.             year beginning after December 31, 2017, that has an 
                                                              election out of BBA in effect pursuant to section 6221(b).
                                                              • If you’re a partner in an ELP for tax years before 2018. 
                                                              Partners must report all partnership items consistently 

4                                                                            Instructions for Form 8082 (Rev. Jan. 2024)

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with their treatment on the partnership return as shown on    How Many Forms To Complete
Schedule K-1 (Form 1065-B). Only the partnership may 
file an AAR.                                                  You must complete and file a separate form for each 
                                                              pass-through entity for which you’re reporting an 
Interest and Penalties                                        inconsistent or AAR item. If you’re reporting more than 
If you disregard the requirements for filing Form 8082, you   four inconsistent or AAR monetary items from one 
may be subject to the accuracy-related penalty under          pass-through entity, use additional Forms 8082 because 
section 6662 or the fraud penalty under section 6663.         Part II only provides four lines (8 through 11). You don’t 
Either penalty is in addition to any tax that results from a  need to complete lines 8 through 11 if not reporting a 
computational adjustment to make your amount or               change to the amount or treatment of a monetary item; 
treatment of the item consistent with the amount or           however, you must include an explanation of the 
treatment of the item on the pass-through entity's return.    change(s) in Part III.

Interest. Generally, interest is charged on taxes not paid    How and When To File
by the due date, even if an extension of time to file is      Don’t file Form 8082 by itself.
granted. Interest is also charged on penalties imposed for    • If you file Form 8082 as a notice of inconsistent 
negligence, fraud, substantial valuation misstatements,       treatment, complete a single copy of the form, attach it to 
substantial understatements of tax, and reportable            your tax return, and file it when you file your original return.
transaction understatements. The interest is charged from     • If a TMP, PR, or ELP files Form 8082 as an AAR on 
the due date (including extensions) to the date of            behalf of the partnership, the TMP, PR, or ELP must 
payment. The interest charge is figured at a rate             complete the form, attach it to the partnership's amended 
determined under section 6621.                                tax return, and file it with the service center where the 
Late payment penalty.   The penalty for not paying the        original return was filed.
tax when due is usually 1/2 of 1% of the unpaid tax for       • If a partner in a TEFRA partnership or residual interest 
each month or part of a month that the tax remains            holder files Form 8082 as an AAR, it must be filed in 
unpaid. The penalty can’t exceed 25% of the unpaid tax.       duplicate. The original copy is filed with the partner's or 
                                                              residual interest holder's amended income tax return, and 
Other penalties. Penalties can also be imposed for            the other copy is filed with the service center where the 
negligence, substantial understatements of tax, reportable    pass-through entity return is filed. See Notice of 
transaction understatements, and fraud. See sections          inconsistent treatment filed with return, later, under Part II.
6662, 6662A, and 6663.
                                                                Generally, a pass-through entity may file an AAR to 
Interest and penalties applicable to IU.    Except when       change items on its return:
the partnership elects to have its partners take into           1. Within 3 years after the later of:
account the adjustments, BBA partnership interest and 
penalties are the following.                                    • The date on which the pass-through entity return for 
• The interest figured with respect to any IU is the interest   that year is filed, or
that would be determined under chapter 67 for the period        • The last day for filing the pass-through entity return 
beginning on the day after the return due date for the          for that year (excluding extensions);
reviewed year and ending on the return due date for the         2. In the case of a TEFRA partnership or REMIC, 
adjustment year as defined under section 6225(d)(2) or, if    before a notice of final partnership administrative 
earlier, the date the IU is paid.                             adjustment for that year is mailed to the TMP or tax 
• Any penalty, addition to tax, or additional amount that is  matters person; or, in the case of an ELP, before the 
determined at the partnership level is applied as if that     mailing to the partnership of a notice of partnership 
BBA partnership had been an individual subject to tax         administrative adjustment with respect to that year; or
under chapter 1 for the reviewed year and the IU were an        3. In the case of a BBA partnership, before a notice of 
actual underpayment (or understatement) for that year for     an administrative proceeding with respect to the tax year 
purposes of part II of subchapter A of chapter 68.            is mailed under section 6231.
Election to apply the alternative to payment of the IU.         A partnership return or a REMIC return is generally due 
If the partners must take into account the adjustments        by the 15th day of the 3rd month following the close of the 
because the BBA partnership filed an AAR and there are        partnership's or REMIC's tax year. The tax year of a 
adjustments that don't result in an IU or if a BBA            REMIC always ends on December 31.
partnership elects the alternative to payment of the IU 
under sections 6227(b)(2) and 6226(c), interest shall be        Special rules apply if the period of limitations has been 
determined:                                                   extended by agreement and in the case of a TEFRA AAR 
• At the partner level;                                       that relates to the deductibility of bad debts or worthless 
• From the due date of the return for the tax year to which   securities. See sections 6227 (prior to amendment by 
the increase is attributable, determined by taking into       BBA) and 6251 for details.
account any increases attributable to a change in tax 
                                                              What To Attach
attributes for a tax year under section 6226(b)(2) until the 
date of payment; and                                          If applicable, attach the following items to Form 8082.
• At the section 6621(a)(2) underpayment rate.                • If the corrected amount involves an item that must be 
                                                              supported with a schedule, statement, or form, attach the 
                                                              appropriate schedule, statement, or form. Include the 
                                                              entity's name and employer identification number (EIN) on 

Instructions for Form 8082 (Rev. Jan. 2024)                                                                                 5

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any attachments. See the instructions for Forms 1065, In either case, the partnership is liable for any interest
1065-B, or 1066 (as applicable) for a list of forms that may and penalties on the IU that result from the adjustment.
be required. See section 6242(b) for details. Interest is figured on the
Note. If the attachments needed to support the corrected IU for the period beginning on the day after the due date
amount include copies of forms or schedules from (excluding extensions) of the partnership return for the
previously filed tax returns, enter at the top of each adjusted year and ending on the due date (excluding
previously filed form or schedule, “Copy Only—Don't extensions) of the partnership return for the tax year the
Process.” adjustment takes effect, or, if earlier, the date the
• A BBA partnership must attach a schedule to Form partnership paid the tax due under (2) above. The
8082 that supports the position(s) reported. If the adjusted year is the partnership tax year in which the item
partnership doesn’t make an election under section being adjusted arose.
6227(b)(2) to have the adjustments taken into account by
How to file. Attach Form 8082 to an amended Form
the reviewed year partners and would like to modify per
1065-B for the adjusted year. Enter in the top margin of
section 6227(b)(1), it must attach a Form 8980,
the amended return, “See attached Form 8082 for AAR
Partnership Request for Modification of Imputed
per IRC section 6251.” Be sure to check box G(4) on
Underpayments Under IRC Section 6225(c), that supports
page 1 of the amended return. Identify in Part II of Form
any modifications made to the IU as described in sections
8082 the amount and treatment of any item the
6225(b) and 6225(c) and as applied to a BBA AAR under
partnership is changing from the way it was reported on
section 6227(b)(1). See Modifications to an Imputed
the original return. If the partnership elects to pay the tax,
Underpayment Included in an Administrative Adjustment
enter it on line 26 of page 1 of the amended Form 1065-B.
Request in Pub. 5346, Instructions for Form 8980.
Don't enter any other amounts on the amended Form
• Attach Forms 8985 and 8986, as applicable. Form 8986
1065-B. Attach a computation of the tax to Form 8082.
is used by BBA partnerships to furnish and transmit each
The IRS will bill the partnership for any interest and
partner’s share of adjustments to PRIs. See the
penalties it owes.
instructions for Forms 8985 and 8986 for more
information. If the income, deductions, credits, or other information
• If the AAR is a request for an electronically deposited provided to any partner on Schedule K-1 is incorrect, file
refund of $1 million or more, attach Form 8302, Electronic an amended Schedule K-1 (Form 1065-B) for that
Deposit of Tax Refund of $1 Million or More. partner(s) with Form 8082. Also give the partner(s) a copy.

Judicial Review of an AAR (for AAR With Election Into the
Returns Subject to the TEFRA Centralized Partnership Audit Regime
Procedures or ELPs) Under BBA
If the IRS fails to act on an AAR, the TMP or PWA may file Certain partnerships may elect to have the new
a petition for judicial review with the U.S. Tax Court, U.S. centralized partnership audit regime apply to a return filed
Court of Federal Claims, or U.S. District Court. The TMP for an eligible tax year when filing an AAR under section
or PWA must file the petition before the date that is 2 6227. An eligible tax year is any tax period beginning after
years after the date the TMP or PWA filed the AAR, but November 2, 2015, and before January 1, 2018. Only
not until after the date that is 6 months from the date of partnerships can file an AAR under section 6227. A
such filing. The 2-year period may be extended if the IRS partnership may not make this election where:
and the TMP or PWA agree in writing. For more details, • An AAR has been filed on behalf of the partnership
see sections 6228 (prior to amendment by BBA) and under section 6227(c) (prior to amendment by BBA), or
6252. • An amended return for the partnership has been filed.
See Regulations section 301.9100-22(c)(4).
Special Rules for ELPs for Tax Years
An AAR filed for an eligible tax year before January 1,
Beginning Before 2018 2018, will be treated as an AAR filed on behalf of a
An ELP may file an AAR to adjust partnership items. TEFRA partnership or as an amended return filed on
However, a partner may not file an AAR. Generally, the behalf of a nonTEFRA partnership, as applicable. An AAR
ELP has two choices for handling the adjustment. filed after January 1, 2018, for an eligible tax year without
a statement attached to the AAR on which the partnership
1. It can combine the adjustment with the same
makes the election into the centralized partnership audit
partnership item for the year in which the IRS allows the
regime will be treated as an AAR filed on behalf of a
adjustment and pass it through to the current partners for
TEFRA partnership or as an amended return filed on
that year. However, if the adjustment involves a reduction
behalf of a nonTEFRA partnership, as applicable. Once
in a credit that exceeds the amount of that credit for the
made, an election may only be revoked with the consent
partnership tax year in which the adjustment is allowed,
of the IRS.
the partnership must pay tax in an amount equal to that
excess amount. Note. An AAR filed with respect to a 2018 short tax
2. It may elect to not pass the adjustment through to period return by a partnership that is subject to the
current partners by paying tax on any IU that results from centralized partnership audit regime must meet the
the adjustment, as explained in section 6242(b)(4), prior requirements under section 6227.
to amendment by BBA.

6 Instructions for Form 8082 (Rev. Jan. 2024)

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Making the election. To make the election, the If modification is applied to an IU, the AAR must include
partnership must enter across the top of Form 1065 used detailed documentation to support all modifications made
to file the AAR, “Election under Section 1101(g)(4)” and to the IU.
attach a statement to the AAR. For the statement Unless the partnership elects under section 6227(b)(2)
requirement, the partnership can use Form 7036, Election to have the partners take the adjustments into account, if
Under Section 1101(g)(4) of the Bipartisan Budget Act of the partnership adjustment results in an IU, the
2015. If Form 7036 isn’t used, the partnership may partnership must report and pay the IU and any interest
prepare its own statement with the following information. and penalty associated with the IU at the time the AAR is
• The partnership's name and taxpayer identification submitted. See Interest and penalties applicable to IU,
number (TIN), and the partnership tax year for which the earlier.
election is being made. Unless the calculation of the IU contains a permitted
• The name, TIN, address, and daytime telephone rate modification per section 6225(c)(4), the IU will be
number of the individual who signs the statement. figured using the highest rate in effect under section 1 or
• Language indicating that the partnership is electing 11 for the tax year to which the adjustment relates. Enter
application of section 1101(c) of BBA for the partnership “BBA Imputed Underpayment” in the bottom margin of
return for the eligible tax year. page 1 (Form 1065) and include the IU and any interest or
• The information required to properly designate the PR penalties related to the IU.
as defined by section 6223, which must include the name,
If the partnership elects under section 6227(b)(2) to
TIN, address, and daytime telephone number of the PR.
have the partners take the adjustments into account or
• The following representations must be made on the
there are adjustments that don't result in an IU, the
statement of election.
partnership is required to furnish statements to each
° The partnership isn’t insolvent and doesn’t partner of the partnership for the reviewed year, and file
reasonably anticipate becoming insolvent before statements with the AAR. See the instructions for Forms
resolution of any adjustment with respect to the 8985 and 8986 for more information.
partnership tax year for which the election is being
made. Note. BBA partnerships must file an AAR instead of an
° The partnership hasn’t voluntarily filed, and doesn’t amended return and won’t attach amended Schedules
reasonably anticipate filing, a petition for relief under K-1 to the AAR. See IRS.gov/BBAAAR for instructions for
title 11 of the United States Code. electronically submitting a BBA AAR.
° The partnership isn’t subject to, and doesn’t
Filing an AAR electronically. If the AAR is filed
reasonably anticipate becoming subject to, an
electronically, and an election is being made under
involuntary petition for relief under title 11 of the United
section 1101(g)(4) of BBA, the partnership uses Form
States Code.
1065 and Form 8082 including the statement “Election
° The partnership has sufficient assets, and
Under Section 1101(g)(4).”
reasonably anticipates having sufficient assets, to pay
a potential IU with respect to the partnership tax year
that may be determined under subchapter C of Specific Instructions
chapter 63 of the Internal Revenue Code, as amended
by BBA. Specific instructions for most of the lines have been
• A representation, signed under penalties of perjury, that provided. Lines that aren’t explained are self-explanatory.
the individual signing the statement is duly authorized to If, after reading the instructions, you're unable to complete
make the election described in Regulations section an item in Part I or Part II, enter “See Part III” in the entry
301.9100-22 and that, to the best of the individual's space for that item and provide the information there.

knowledge and belief, all of the information contained in Note. If the pass-through entity didn’t file a return or give
the statement is true, correct, and complete. you a Schedule K-1, Schedule K-3 (and according to the
• The statement must be signed and dated by the TMP, instructions for Schedule K-2, the pass-through entity was
as defined under section 6231(a)(7) (prior to amendment required to provide one to you), Schedule Q, and/or
by BBA), and the applicable regulations, or an individual foreign trust statement by the time you're required to file
who has the authority to sign the partnership return for the your return, complete Parts I and II to the best of your
tax year. The fact that an individual dates and signs the knowledge.
statement making the election shall be prima facie
evidence that the individual is authorized to make the Name and Identifying Number
election on behalf of the partnership. Enter the legal name of the entity and identifying number
Imputed underpayment (IU). Partnerships filing an AAR on the appropriate lines.
with an election into the centralized partnership audit
regime under BBA will need to determine if any Part I—General Information
partnership adjustment as defined by section 6241(2)
results in an IU as described in section 6225(b). See Line 1
section 6225(c), excluding paragraphs (2), (7), and (9), for Check box (a) if you believe an item wasn’t properly
guidance regarding the modification rules that may apply reported on Schedule K-1, Schedule K-3, Schedule Q,
to an IU. Form 8986 (only issued with respect to an AAR), and/or
foreign trust statement you received, or if you haven’t
received a Schedule K-1, Schedule K-3 (that the

Instructions for Form 8082 (Rev. Jan. 2024) 7

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pass-through entity was required to provide according to      return requesting a refund. The IRS may conduct an 
the instructions for Schedule K-2), Schedule Q, or foreign    examination of the pass-through entity’s return, or take no 
trust statement by the time you're required to file your tax  action on the request. When a request isn’t treated as a 
return (including extensions).                                substituted return, the IRS can’t assess tax without a 
                                                              deficiency or entity-level proceeding. See section 6227(c)
  Check box (b) if you're filing an AAR on which you're 
                                                              (2) (prior to amendment by BBA).
requesting a change in the amount or treatment of any 
item from the way you reported it on your return as           In either case, if you’re a TMP filing an AAR 
originally filed or as you later amended it.                  electronically, file an amended Form 1065, but don't enter 
                                                              any amounts on the form itself. Attach Form 8082 and 
Note.  A partnership-partner that is also a BBA               identify the amount and treatment of any item you're 
partnership that is filing an AAR that is inconsistent with a changing from the way it was reported on the original 
Schedule K-1, Schedule K-3, and/or Form 8986 it               return. The TMP must sign the amended return.
received (only with respect to an AAR) will check both        Attach amended Schedules K-1 showing the corrected 
boxes (a) and (b). A partner (including a                     amounts for each partner.
partnership-partner) can’t file inconsistently with a Form 
8986 it is issued with respect to an audited partnership.     ELP AAR.  The ELP procedures were repealed for tax 
                                                              years beginning after 2017. However, ELPs filing an AAR 
  Subject to the particular filing rules, an AAR can be filed after 2017 for a tax year that began before 2018 will use 
by partnerships subject to TEFRA proceedings (TEFRA           Form 8082.
AAR), partnerships subject to BBA proceedings (BBA 
AAR), and ELPs. An AAR can also be filed by the               For Partnership Tax Years Beginning After 2017 
following partners.                                           and Partnerships Electing Into BBA for Tax Years 
• Partners of a TEFRA partnership.
• Residual interest holders (of REMICs subject to             Beginning After November 2, 2015, and Before 
TEFRA).                                                       January 1, 2018
• Partnership-partners in a BBA partnership (but only for     BBA AAR.    All partnerships with tax years beginning after 
the purpose of providing notice of inconsistent treatment     2017 are subject to the centralized partnership audit 
with the AAR). See Regulations section 301.6227-1(a)          regime unless an eligible partnership makes a valid 
referring to Regulations section 301.6222-1. See Part II,     election under section 6221(b) to elect out of the 
later.                                                        centralized partnership audit regime.
                                                              Partnerships electing into BBA for tax years beginning 
For Partnership Tax Years Beginning Before                    after November 2, 2015, and before January 1, 2018, are 
January 1, 2018 (Unless Electing Into BBA)                    also subject to the centralized partnership audit regime. 
TEFRA AAR. The consolidated audit proceedings of              Partnerships that are subject to the centralized 
sections 6221 through 6234 (prior to amendment by BBA)        partnership audit procedures of sections 6221 through 
are referred to as “TEFRA proceedings.” Partnerships that     6241 are referred to as “BBA partnerships.” A partnership 
are subject to TEFRA proceedings are referred to as           with a tax year beginning after 2017 that isn’t subject to 
“TEFRA partnerships.” An AAR filed by the TMP of the          BBA proceedings because it has made a valid election 
TEFRA partnership is a TEFRA AAR. Form 8082 is also           under section 6221(b) is referred to as a “nonBBA 
used by any partner in a TEFRA partnership filing an AAR.     partnership.” An AAR filed by a BBA partnership is a BBA 
TEFRA proceedings won’t apply to partnerships with tax        AAR.
years beginning after 2017. A partnership with a tax year     If a BBA partnership files an AAR and it needs to make 
beginning before 2018 that isn’t subject to TEFRA             its partners aware of their allocable share of adjustments, 
proceedings is referred to as a “nonTEFRA partnership.”       it will furnish to each partner for the reviewed year a Form 
                                                              8986 reflecting the partner’s share of the adjustments (and 
TEFRA partnerships requesting substituted return 
                                                              shouldn't provide amended Schedules K-1 or K-3). The 
treatment. A substituted return requests that the 
                                                              partnership is also required to file with the AAR any Forms 
treatment of an item shown on the AAR be substituted for 
                                                              8986 required to be furnished to partners along with Form 
the treatment of the item on the pass-through entity's 
                                                              8985. See the instructions for these forms for further 
return. If the IRS allows substituted return treatment, the 
                                                              information.
changes shown on the amended return will be treated as 
corrections of mathematical or clerical errors, and the IRS   The partnership will need to furnish such statements to 
may assess any resulting tax to the partners or residual      make its partners aware of their allocable share of 
interest holders without a deficiency or entity-level         adjustments when (1) the adjustments in the BBA AAR 
proceeding, or partners or residual interest holders may      result in an IU of zero or less than zero, or the adjustments 
file an amended return requesting a refund. See section       don’t result in an IU; or (2) the adjustments in the BBA 
6227(c)(1) (prior to amendment by BBA).                       AAR do result in an IU greater than zero but (as an 
                                                              alternative to payment) the BBA partnership makes a valid 
  If you’re a TMP filing a TEFRA AAR on behalf of the 
                                                              election under section 6227(b)(2) to have each reviewed 
partnership and requesting substituted return treatment, 
                                                              partner take its share of adjustments into account. See 
attach a statement to Form 8082 indicating that you're 
                                                              items B, C, and D that follow.
requesting substituted return treatment.
  If the request isn’t treated as a substituted return, the 
partners or residual interest holders may file an amended 

8                                                                         Instructions for Form 8082 (Rev. Jan. 2024)

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Item A. If the "Yes" box is checked, complete Form Note. If the partnership makes an election to push out the
8979 and attach it to the AAR. See the Instructions for adjustments to the partners as alternative to payment of
Form 8979. the IU, the modifications to the IU are disregarded and
Item B. BBA partnerships filing an AAR will need to aren’t included on the statements provided to the
determine if the partnership adjustments result in an IU. partners.
See Figuring the IU, later, for information on how to figure
the IU. The BBA partnership should consider all available Lines 2 Through 6
guidance issued by the IRS in making a determination of Generally, the information for these lines can be found on
whether or not the AAR results in an IU. Also see IU Under Schedule K-1, Form 8986, Schedule Q, or the foreign trust
the Centralized Partnership Audit Regime, later, for statement.
discussion of the IU.
Line 6—Tax Year of Pass-Through Entity
Note. An IU calculation must always be made and If you’re a partner filing a notice of inconsistent treatment
presented on the AAR. This even applies when the IU is from a Form 8986 received as a result of a BBA
zero or less than zero, or the adjustments don't result in an partnership AAR, use the date contained in Part II, box D
IU. See Figuring the IU, later, under Part III for more (Review year of the partnership), from the Form 8986.
information.
Item C1. If the adjustments contained in the BBA AAR Part II—Inconsistent or Administrative
result in an IU, the partnership must pay the IU at the Adjustment Request (AAR) Items
same time the AAR is filed. However, under section
6227(b)(2), the partnership can elect to have its reviewed TEFRA partnerships and ELPs filing AARs. If a
year partners take the adjustments into account. This is an TEFRA partnership/ELP is filing an AAR to change items
election to push out the adjustments to the partners as an that were reported on its original return, do the following.
alternative to payment of the IU. See section 6226(a)(2) 1. Determine the required changes to be made.
for details. If this valid election is made, the partnership is
2. Complete Form 8082 to identify the changes being
no longer liable for the IU.
made.
Item C2. The partnership will need to furnish Forms
8986 to each reviewed year partner reflecting the partner's a. On Form 8082, check box (b) under Part I, line 1.
share of adjustments for when the adjustments don't result b. See Lines 8 Through 11, later, for how to complete
in an IU (for example, the adjustments in the BBA AAR Part II, columns (a) through (e).
result in an IU of zero or less than zero; or there is a net 3. Complete Form 1065.
negative adjustment). a. File an amended Form 1065 (checking box G5).
The partnership is also required to file with the AAR all b. The TMP must sign the amended return.
Forms 8986 furnished to partners and Form 8985. See the c. Attach amended Schedules K-1 showing the
instructions for these forms for further information. corrected amounts for each partner.
Item D. Each reviewed year partner is required to take 4. File Form 8082 along with Form 1065 and attach
into account its share of adjustments requested in a BBA any other supporting documents required.
AAR if the partnership adjustments result in a positive IU 5. Give a copy of the amended Schedules K-1 to the
and the partnership makes the alternative to payment applicable partners.
election discussed under Item C1, earlier. Additionally,
each reviewed year partner is required to take into TEFRA partner filing an AAR. If a partner in a TEFRA
account its share of any adjustments requested in a BBA partnership is filing an AAR to change items associated
AAR resulting in an IU of zero or less than zero, or that with its investment in the TEFRA partnership that were
don't result in an IU. The determination of whether or not reported on its original return, do the following.
an adjustment results in an IU amount is discussed earlier
1. Determine the required changes to be made.
under Item B.
2. Complete Form 8082 to identify the changes being
The partnership is required to furnish each reviewed
made.
year partner with a Form 8986 reporting its share of the
BBA AAR adjustments. The PR must attest to the a. On Form 8082, check box (b) under Part I, line 1.
partnership’s compliance with this requirement. The PR b. See Lines 8 Through 11, later, for how to complete
will manually sign Form 8082 under item D to declare Part II, columns (a) through (e).
under penalties of perjury that all statements have been 3. Complete the applicable amended return.
provided to the reviewed year partners as required by 4. File Form 8082 along with the applicable amended
these instructions. If filing electronically, Form 8082 should return and attach any other supporting documents
be attached as a PDF to Form 1065. required.
Item E. Under section 6227(b)(1), the partnership may
modify the IU resulting from adjustments reported in a Partner filing a notice of inconsistent treatment for a
BBA AAR in accordance with the provisions under section Schedule K-1 received from a TEFRA partnership. If
6225(c), disregarding the provisions under paragraphs a partner doesn’t receive a Schedule K-1 from a TEFRA
(2), (7), and (9). Any modification made to the IU under partnership or does receive a Schedule K-1 but disagrees
section 6227(b)(1) must be disclosed and fully explained with some or all of the reported treatment and/or amounts,
on Form 8980 included with the AAR. it may file a notice of inconsistent treatment by doing the
following.

Instructions for Form 8082 (Rev. Jan. 2024) 9

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1. On Form 8082, check box (a) under Part I, line 1. Pass-through partner filing a notice of inconsistent
2. See Lines 8 Through 11, later, for how to complete treatment for a Form 8986 received from a BBA part-
Part II, columns (a) through (e). nership filing an AAR. When a pass-through partner
3. File Form 8082 along with the applicable return and receives Form 8986 as a result of an AAR filed by a BBA
attach any other supporting documents required. partnership in which it’s an indirect or direct investor, that
pass-through partner will (prior to the date contained in
BBA partnerships filing AARs. If a BBA partnership is box F of Part II on Form 8986) take one of the following
filing an AAR to change items that were reported on its actions.
original return, do the following. • Push out all the adjustments that are on the Form 8986
1. Determine the required changes to be made. to its partners, shareholders, or beneficiaries. The
pass-through partner will prepare and file with the IRS
2. Complete Form 8082 to identify the changes being Form 8985 and Forms 8986.
made. For the adjustments resulting in an IU, pay the IU on
•
a. On Form 8082, check box (b) under Part I, line 1. those adjustments and prepare and issue to its partners,
b. See Lines 8 Through 11, later, for how to complete shareholders, or beneficiaries Forms 8986 for those
Part II, columns (a) through (e). adjustments that don't result in an IU. The pass-through
3. Figure an IU and determine if there are any partner will prepare and file with the IRS Form 8985 and
adjustments that don't result in an IU. Forms 8986.

4. Determine if you'll pay the IU or push out the Note. Pass-through partners aren’t permitted to apply
adjustments to the partners. modifications to the IU.
a. If paying an IU, complete Form 1065 and report the • Where Form 8986 only contains adjustments that don't
IU appropriately. Complete Forms 8985 and 8986 result in an IU, prepare and issue to its partners,
(pushout package) pertaining to the adjustments that shareholders, or beneficiaries Forms 8986 for those
don't result in an IU (if applicable). adjustments.
b. If pushing out all the adjustments to the reviewed However, a pass-through partner may file inconsistently
year partners, complete Form 1065 (see the if it provides valid notice to the IRS of inconsistent
Administrative Adjustment Request (AAR) section of treatment.
the Form 1065 instructions). Also complete Forms
8985 and 8986. Note. Any partner (including a pass-through partner) that
5. File Form 8082 along with Form 1065, and attach receives Form 8986, as a result of an audit, isn’t permitted
any other supporting documents required, including to treat items on that Form 8986 inconsistently and must
copies of Forms 8985 and 8986 (if applicable). report consistently with the information provided on Form
6. If applicable, distribute the Forms 8986 to reviewed 8986.
year partners according to the Form 8986 instructions. Notice of inconsistent treatment filed with Form
8985. A pass-through partner receiving Form 8986 (as a
Partner filing a notice of inconsistent treatment for a result of a BBA partnership filing an AAR, and not as a
Schedule K-1 or Schedule K-3 received from a BBA result of an audit) may (prior to the date contained in box F
partnership. When a partner receives a Schedule K-1 or in Part II of Form 8986) file inconsistently from that Form
Schedule K-3 from a BBA partnership, it must generally 8986 if the pass-through partner provides valid notice to
file consistently with that Schedule K-1 or Schedule K-3. the IRS of inconsistent treatment. To provide a notice of
However, a partner may file inconsistently if it provides inconsistent treatment in these circumstances as a
valid notice to the IRS of inconsistent treatment. pass-through partner, do one of the following.
Notice of inconsistent treatment filed with return. If 1. Prepare Form 8985 and Forms 8986 for all
a pass-through partner doesn’t receive a Schedule K-1 or adjustments (including any items that are treated
Schedule K-3 (and the pass-through entity was required to inconsistently, as reported on Form 8082) in accordance
provide one according to the instructions for with the instructions for Forms 8985 and 8986.
Schedule K-2) from a BBA partnership or does receive a a. Using all adjustments, whether being treated

Schedule K-1 or Schedule K-3 but disagrees with some or consistently or inconsistently, prepare Forms 8986 for
all of the reported treatment or amounts, it may file a your partners, shareholders, or beneficiaries according
notice of inconsistent treatment with its return (original or to the Instructions for Form 8986. Complete Form
amended/AAR). To do so, as a pass-through partner, 8985 according to its instructions.
you’ll include Form 8082 with your return (for example, b. Complete Form 8082. Attach the completed Form

Form 1065, Form 1120-S) and prepare your return using 8082 and a copy of the Form 8986 received to the
the treatment or amounts you determine are correct, do completed Form 8985 and Forms 8986 to be filed with
the following. the IRS.
1. On Form 8082, check box (a) under Part I, line 1 2. Pay the IU for all adjustments (including any items
(and box (b), if applicable). that are treated inconsistently as reported on Form 8082).
2. See Lines 8 Through 11, later, for how to complete a. Prepare Form 8985 (and Forms 8986 for partners, if

Part II, columns (a) through (e). applicable) according to the instructions for Forms
3. File Form 8082 along with the applicable return and 8985 and 8986. Form 8985 should be prepared using
attach any other supporting documents required.

10 Instructions for Form 8082 (Rev. Jan. 2024)

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the adjustments that are being treated both AAR. If you’re filing an AAR, check the box under
consistently and inconsistently. “Amount of item” if you’re changing the amount from what
b. Complete Form 8082. Attach the completed Form was previously filed. Check the box under “Treatment of
8082 and a copy of the Form 8986 received to Form item” if you’re reporting the amount unchanged but are
8985 (and Forms 8986, if applicable) to be filed with changing another treatment of the item. Check both boxes
the IRS. if you’re changing the amount and another treatment
c. In making the IU calculation for Form 8985, the besides amount.
adjustments should be determined for each item Inconsistent treatment. If you believe that the amount
(including any item treated inconsistently) by taking of any item shown on Schedule K-1, Schedule K-3,
the difference between the amount you previously Schedule Q, Form 8986 (as a result of a BBA AAR, and
reported and the amount you're now reporting. not as a result of an audit), and/or a foreign trust statement
d. Additionally, for any of the consistently and wasn’t properly reported, check “Amount of item.”
inconsistently treated adjustments that don't result in If you believe that treatment of any item (other than the
an IU, prepare Forms 8986 for your partners, amount of the item) wasn’t properly reported (such as a
shareholders, or beneficiaries according to the long-term capital loss that a partner thinks should be an
Instructions for Form 8986. ordinary loss), check “Treatment of item.”
See Lines 8 Through 11, later, for how to complete Part II, Check both parts of column (b) if either (1) or (2) below
columns (a) through (e). applies.
Other than pass-through partner filing a notice of in- 1. You believe that both the amount and another
consistent treatment from a BBA partnership. If treatment (besides the amount) of the item shown on
you're a partner (other than a pass-through partner) filing Schedule K-1, Schedule K-3, Schedule Q, Form 8986 (as
inconsistently from a BBA partnership (that is, a result of a BBA AAR, and not as a result of an audit),
inconsistently from a Schedule K-1, Schedule K-3, and/or and/or a foreign trust statement weren’t properly reported,
Form 8986 you received as a result of a BBA partnership or you believe an item was omitted from the form.
filling an AAR, and not as a result of an audit), complete 2. The pass-through entity didn’t file a return or give
Form 8082 and attach it to your original or amended you a Schedule K-1, Schedule K-3 (and the pass-through
return. If filing inconsistently from a Form 8986 (received entity was required to provide one to you according to the
as a result of a BBA partnership filing an AAR and not as a instructions for Schedule K-2), Schedule Q, and/or foreign
result of an audit), attach Form 8082 to your reporting year trust statement.
return that corresponds to the Form 8986 received. Attach
a copy of the Form 8986 received from which you’re filing Note. If you check only “Treatment of item,” you don't
inconsistently. See Reporting year, earlier. See Lines 8 need to complete columns (d) and (e).
Through 11 below for how to complete Part II, columns (a) Column (c).
through (e).
AAR. If you’re filing an AAR, report the amount you
Lines 8 Through 11 previously reported for the item listed in column (a).
Inconsistent treatment. If you attach Form 8082 to
Note. Lines 8 through 11 are only required if reporting a your return, to make a notice of inconsistent treatment,
change to the amount or treatment of a monetary number. enter the amount as shown on the Schedule K-1,
Column (a). Schedule K-3, Schedule Q, and/or foreign trust statement
AAR. If you’re filing an AAR, enter the line number and you received.
description from the form for which you’re making the If the pass-through entity didn’t file a return, or if you
change. For example, if you’re changing the amount didn’t receive a schedule or statement, or if you're
reported on Schedule K, line 1, enter “Schedule K, line 1.” reporting items that you believe were omitted, enter zero
Inconsistent treatment. If you received a in column (c).
Schedule K-1, Schedule K-3, Schedule Q, Form 8986 (as If you receive Form 8986 as a result of a BBA AAR (and
a result of a BBA AAR, and not as a result of an audit), not as a result of an audit), do the following to make a
and/or foreign trust statement, enter the line number and notice of inconsistent treatment.
description shown on the form. Otherwise, enter a • Pass-through partner preparing Form 8985, attach
complete description of the item. Form 8082 to the Form 8985 you file.
If you didn’t receive a Schedule K-1, Schedule K-3, • Other than pass-through partner, attach Form 8082 to
Schedule Q, and/or foreign trust statement but are still the copy of the return (or amended return) you file.
reporting estimated amounts on your original filing, enter a If treating any liabilities or capital items reported to you
completed description of the item and where you're on Form 8986, Part IV, inconsistently, enter the item
reporting the estimated amount on your original return. For amount from Form 8986, Part IV, “Corrected” column, in
example, if you're a BBA partnership-partner providing Form 8082, Part II, column (c).
notice of inconsistent treatment for a Form 8986 received,
If treating an item of income, gain, loss, deduction, or
as a result of a BBA AAR, and not as a result of an audit,
credits, or other items reported to you on Form 8986, Part
enter the information from the first three columns of Form
V, inconsistently, enter the sum of Form 8986, Part V,
8986, Part V, that you're treating inconsistently.
columns (d) and (h), in Form 8082, Part II, column (c).
Column (b).

Instructions for Form 8082 (Rev. Jan. 2024) 11

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If treating any items reported to you on Form 8986, Part for, nor required to pay, the IU related to the adjustments.
VI, inconsistently, enter that item amount from Form 8986 Additionally, if the IU calculation results in an amount that
in Form 8082, Part II, column (c). is zero or less than zero, or the adjustments don't result in
an IU, then all adjustments are taken into account by the
Column (d). Enter the amount you’re reporting as the
reviewed year partners. However, the partnership may
correct amount in column (d).
have withholding and reporting obligations under
Column (e). Enter the net increase or decrease for each chapter 3 or chapter 4 with respect to the adjustments
line being changed in column (e). Enter as a positive the taken into account by the reviewed year foreign partners.
amount by which column (d) exceeds column (c) or enter See Forms 8985 and 8986 and their related instructions
as a negative the amount by which column (c) exceeds for how to report these adjustments to reviewed year
column (d). Use parentheses around all amounts that are partners.
negative. Explain the reason for the change (increase or
decrease) in Part III. If the partnership elects under section 6227(b)(2) to
have its reviewed year partners take all the adjustments
Part III—Explanations into account, all modifications by the partnership (that
Explain in detail the reasons you're reporting an would have been allowed had the partnership paid an IU)
inconsistent or corrected amount or item as follows. aren’t allowed and are disregarded.
• If you believe that the amount or other type of treatment Under section 6227(b)(1), the partnership may modify
of any item shown on Schedule K-1, Schedule K-3, the IU resulting from adjustments reported in a BBA AAR
Schedule Q, Form 8986 (as a result of a BBA AAR, and in accordance with the provisions under section 6225(c),
not as a result of an audit), and/or a foreign trust statement disregarding the provisions under sections 6225(c)(2), (7),
wasn’t properly reported, state how you think the item and (9). Any modification made to the IU under section
should be treated and why. 6227(b)(1) must be disclosed and fully explained in
• If the pass-through entity hasn’t filed a tax return by the documentation included with the AAR. If modifications are
time you're required to file your tax return, enter as the applied to the IU, complete and attach Form 8980 and
explanation, “Partnership (S corporation, Estate, Trust, or report the modified IU amount on Form 1065, page 1,
REMIC) return not filed.” line 26.
• If the pass-through entity didn’t give you a
Schedule K-1, Schedule K-3 (and the pass-through entity Note. Regarding modifications, see Item E under Part I,
was required to provide one to you according to the earlier.
instructions for Schedule K-2), Schedule Q, and/or foreign The applicability of interest and penalties is discussed
trust statement by the time you're required to file your tax above. The BBA AAR may include a prepayment for
return, enter as the explanation, “Schedule K-1 interest and penalties. If making prepayments, the AAR
(Schedule K-3, Schedule Q, and/or foreign trust should include documentation that supports the
statement) not received.” calculations. A payment made with Form 1065 should
detail the portions of the payment that are for the IU, the
IU Under the Centralized Partnership Audit
prepaid estimated interest, and the prepaid estimated
Regime penalties. The total of all three should be reflected on
BBA AARs must always include a computation of the IU Form 1065, page 1, line 26.
(even when the IU is zero or less than zero, or the
adjustments don't result in an IU), as determined under Under section 6232(b), partnerships filing a BBA AAR
section 6225(b). Documentation should be included with that have adjustments that result in an IU, and don't elect
the AAR that supports the computation of the IU amount. the alternative to payment of the IU (by not electing to
The BBA partnership should consider all available push out the adjustments to the reviewed year partners),
guidance issued by the IRS when figuring the IU amount must pay the IU, which should be shown on Form 1065,
for an AAR. If the calculated IU amount results in an page 1, line 26, at the same time that the AAR is filed.
amount greater than zero and the partnership doesn't When paying by check, include the name of the
elect under section 6227(b)(2) to have its reviewed year partnership, “Form 1065,” the TIN of the partnership, the
partners take the adjustments into account, the IU amount tax year, and “BBA AAR Imputed Underpayment.” Checks
should be reported on Form 1065, page 1, line 26. must be made payable to “United States Treasury” and
included with the BBA AAR. If making an electronic
If the adjustments requested in the AAR result in an IU, payment, choose the payment description “BBA AAR
generally the partnership must pay the IU. Adjustments Imputed Underpayment” from the list of payment types.
requested in the AAR that don't result in an IU must be
taken into account by each reviewed year partner as if the Figuring the IU
partnership had made an election under section 6227(b)
(2), but only with regard to those adjustments that don't Definitions
result in an IU. In this instance, see Forms 8985 and 8986 Reallocation grouping. In general, any adjustment that
and the related instructions for reporting amounts not allocates or reallocates a PRI to and from a partner or
included in the IU. partners is a reallocation adjustment, except for an
When filing an AAR, the partnership may elect under adjustment to a credit or to a creditable expenditure. Each
section 6227(b)(2) to have the reviewed year partners take reallocation adjustment generally results in at least two
into account adjustments resulting in an IU. If the separate adjustments, each of which becomes a separate
partnership makes the election, the partnership isn't liable subgrouping.

12 Instructions for Form 8082 (Rev. Jan. 2024)

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Credit grouping. Any adjustment to a PRI that is Formula for Figuring the IU
reported or could be reported by a partnership as a credit
on the partnership’s return, including a reallocation Figuring the IU
adjustment to such PRI, is placed in the credit grouping.
TNPA x rate* =
Creditable expenditure grouping. Any adjustment to a
PRI where any person could take the item that is adjusted + Sum of net positive adjustments
(or item as adjusted if the item wasn’t originally reported to creditable expenditure and
credit groupings:
by the partnership) as a credit, including a reallocation
adjustment to a creditable expenditure, is placed in the = Total IU
creditable expenditure grouping. * Highest rate in effect for the reviewed year under section 1 or 11.
Residual grouping. Any adjustment to a PRI that
doesn’t belong in the reallocation, credit, or creditable The process of taking the adjustments shown on the AAR
expenditure grouping is placed in the residual grouping. and inputting them into the formula shown in the previous
This grouping also includes any adjustment to a PRI that table requires an understanding of the concepts of
derives from an item that wouldn’t have been required to grouping, subgrouping, and netting. There are seven
be allocated by the partnership to a partner under section steps necessary in figuring an IU. The first three steps
704(b), such as an adjustment to a liability amount on the focus on grouping, subgrouping, and netting.
balance sheet.
Subgrouping. Each adjustment is subgrouped Steps in Figuring the IU
according to how the adjustment would be required to be Step 1—Grouping
taken into account separately under section 702(a). In
general, a subgrouping follows Schedules K, K-1, K-2, Place each adjustment into one of four groupings:
and K-3 line items, including any alpha codes related to a reallocation, credit, creditable expenditure, and residual
Schedule K-1, K-2, or K-3 line item. groupings.
Negative adjustment. A negative adjustment is any Reallocation grouping. A reallocation adjustment
adjustment that is a decrease in an item of gain or income; generally consists of at least two adjustments, one
an increase in an item of loss or deduction; an increase in positive and one negative, with each in a separate
an item of credit or creditable expenditure; a decrease in subgrouping.
an item of tax, penalty, addition to tax, or additional • One part of the reallocation adjustment reverses the
amount for which the partnership is liable under chapter 1; effect of the improper allocation of a PRI.
or a decrease to an IU calculated by the partnership for • The other part of the adjustment makes the proper
the tax year. allocation of the PRI.
Positive adjustment. A positive adjustment is any • Under the AAR rules, if one of the reallocation
adjustment that isn't a negative adjustment. adjustments is negative, such negative adjustments must
be pushed out to the proper partner(s).
Net positive adjustment. An amount that is greater than
zero which results from netting adjustments within a Don't net reallocation adjustments. As each part of
grouping or subgrouping. A net positive adjustment ! a reallocation adjustment is placed in a separate
includes a positive adjustment that wasn’t netted with any CAUTION subgrouping within the reallocation grouping,
other adjustment. A net positive adjustment includes a net those adjustments can’t be netted in accordance with the
decrease in an item of credit (or creditable expenditure). netting rules.

Net negative adjustment. Any amount which results Example. $100 of ordinary income is being
from netting adjustments within a grouping or subgrouping reallocated from Partner A to Partner B. For purposes of
that isn't a net positive adjustment. A net negative figuring the IU, there will be two adjustments, each in a
adjustment includes a negative adjustment that wasn’t separate subgrouping: a negative adjustment of $100
netted with any other adjustment. (reversing improper allocation to Partner A) and a positive
adjustment of $100 (making proper allocation to Partner
Total netted partnership adjustments (TNPA). The
B). These two adjustments can’t be netted. As a result, the
sum of all net positive adjustments in the reallocation
total net positive adjustment in the reallocation grouping is
grouping and the residual grouping.
$100 and will be included in the TNPA.
Adjustments not resulting in an IU. After grouping,
Credit grouping.
subgrouping, and netting the adjustments, the result of
netting with respect to any grouping or subgrouping that • Generally, a decrease in credits is treated as a positive
adjustment, and an increase in credits is treated as a
includes a particular partnership adjustment is a net
negative adjustment.
negative adjustment or the IU calculation results in an
amount that is zero or less than zero. Any adjustments that • A reallocation adjustment relating to the credit grouping
is placed into two separate subgroupings and won’t be
don't result in an IU are taken into account by the reviewed
netted together nor will they be netted with other credit
year partners in accordance with Regulations section
adjustments.
301.6227-3.
Creditable expenditure grouping.

Instructions for Form 8082 (Rev. Jan. 2024) 13

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• Generally, a decrease in creditable expenditures is Example. 2019 Schedule K-1, box 13, code A (cash
treated as a positive adjustment to credits, and an contributions 60%), and box 13, code B (cash
increase in creditable expenditures is treated as a contributions 30%), are two separate subgroupings.
negative adjustment. • The ordinary income (loss) amount reported on
• A reallocation adjustment relating to a creditable Schedule K, line 1, and in box 1 of Schedule K-1 is
expenditure grouping is placed into two separate sourced from Form 1065, page 1, and is a net amount
subgroupings and won’t be netted together. consisting of various page 1 line items of income and
• A creditable expenditure is treated in this manner even expenses. Although those separate page 1 line items are
if the partners claimed a deduction in lieu of a credit. distinct items of income and expense, if they are
• Each adjustment to a creditable expenditure is appropriately netted and included on Schedule K, line 1,
subgrouped based upon the separate category of income and in box 1 of Schedule K-1, the net amount will be
to which the creditable expenditure relates and to account considered a single subgrouping, except when such
for any different allocation of the creditable expenditure amount is required to be separately allocated, such as
between partners. Two or more adjustments to creditable when the partnership has more than one trade or
expenditures are included within the same subgrouping business. If the partnership has more than one trade or
only if each adjustment relates to creditable expenditures business activity, the net income (loss) from each
in the same separate category, and each adjusted PRI separate activity must be reported on Schedule K-1. Each
would be allocated to the partners in the same ratio had separate activity will constitute a separate subgrouping
those items been properly reflected on the originally filed and it must be determined which activity an adjustment to
partnership return. the page 1 item of income and expense relates to for
subgrouping purposes.
Residual grouping. The residual grouping contains all
adjustments that don't fit into one of the other groups. • If you have a negative adjustment along with a positive
adjustment in the same line item of Schedules K and K-1,
Recharacterization adjustments. A recharacterization you must consider whether they may be properly netted at
adjustment will generally result in at least two separate the partnership level and whether they are required to be
adjustments within the residual grouping. taken into account separately by any partner. They may be
• One adjustment reverses the improper characterization subject to a limitation or preference under the Internal
of the PRI. Revenue Code before you can place them in the same
• The other adjustment makes the proper subgrouping (for example, passive and nonpassive
characterization of the PRI. activities).
• The adjustments that result from a recharacterization • A negative adjustment that isn't otherwise required to
are placed into separate subgroupings. be placed in its own subgrouping must be placed in the
same subgrouping as another adjustment if the negative
Step 2—Subgrouping adjustment and the other adjustment would have been
properly netted at the partnership level and such netted
Determine if any adjustment, within one of the four amount would have been required to be allocated to the
groupings, needs to be subgrouped. Each adjustment is partners of the partnership as a single item for purposes
subgrouped according to how the adjustment would be of section 702(a) or other provision of the Internal
required to be taken into account separately under section Revenue Code and regulations.
702(a). If any adjustment could be subject to any
preference, limitation, or restriction under the Internal Step 3—Netting
Revenue Code (or not allowed, in whole or in part, against
ordinary income) if taken into account by any person, the Net all adjustments within each of the groupings and
adjustment is placed in a separate subgrouping from all subgroupings.
other adjustments within the grouping. • Positive adjustments may be netted with other positive
adjustments only if they are in the same grouping.
Generally, each separate line item of Schedules K, K-1, Negative adjustments may be netted with other negative
K-2, and K-3 or return schedule (that is, Schedule L, etc.) adjustments only if they are in the same grouping.
represents a separate and distinct subgrouping. • Positive and negative adjustments may only be netted
against each other if they are in the same subgrouping.
Example. Adjustments to ordinary income must be • An adjustment in one grouping or subgrouping may not
placed in a different subgrouping than capital gain income be netted against an adjustment in any other grouping or
or interest income because each of those items is subgrouping.
required to be separately stated under section 702(a). • All adjustments within a subgrouping are netted to
• Subgroupings generally reflect a line item from determine whether there is a net positive adjustment or
Schedules K, K-1, K-2, and K-3 including any net negative adjustment for that subgrouping.
subcategories of those lines (for example, alpha codes • Net positive adjustments from subgroupings or positive
per the Schedule K-1 instructions or activities broken out adjustments within a grouping (if subgroupings are
via attached statements). If any line item on Schedules K unnecessary) are netted to determine the net positive
or K-1 or other schedules consists of multiple items and adjustment for that grouping. Net negative adjustments
the components are required to be taken into account from subgroupings within a grouping are netted to
separately under the Internal Revenue Code, regulations, determine the net negative adjustment for that grouping.
forms, instructions, or other IRS guidance, then such line
item must be further subgrouped.

14 Instructions for Form 8082 (Rev. Jan. 2024)

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Step 4—Figure the Total Netted Partnership Paperwork Reduction Act Notice. We ask for the
Adjustments (TNPA) information on this form to carry out the Internal Revenue
laws of the United States. You're required to give us the
• Each net positive adjustment with respect to a particular information. We need it to ensure that you're complying
grouping or subgrouping in the residual or reallocation with these laws and to allow us to figure and collect the
grouping that results after netting the adjustments is right amount of tax.
included in the calculation of the TNPA.
• Each net negative adjustment with respect to a residual You aren’t required to provide the information requested
or reallocation grouping or subgrouping that results after on a form that is subject to the Paperwork Reduction Act
netting the adjustments is excluded from the calculation of unless the form displays a valid OMB control number.
the TNPA because those adjustments don't result in an IU. Books or records relating to a form or its instructions must
be retained as long as their contents may become
Note. If a positive adjustment to an item is reflected in material in the administration of any Internal Revenue law.
positive adjustments to other items, the positive Generally, tax returns and return information are
adjustment of equal or lesser magnitude that is reflected confidential, as required by section 6103. The time
may be treated as zero solely for purposes of calculating needed to complete and file this form will vary depending
any IU. on individual circumstances. The estimated burden for
individual taxpayers filing this form is approved under
Step 5—Determine the Highest Tax Rate in Effect OMB control number 1545-0074 and is included in the
Under Section 1 or 11 in the Reviewed Year estimates shown in the instructions for their individual
income tax return.
Step 6—Determine the Sum of Net Positive Comments and suggestions. If you have suggestions
Adjustments to Creditable Expenditure and Credit for making Form 8082 and/or these instructions simpler,
we would be happy to hear from you. You can send us
Groupings That Will Increase the Product of the
comments through IRS.gov/FormComments. Or, you can
TNPA Multiplied by the Highest Rate in Effect write to: Internal Revenue Service, Tax Forms and
Publications Division, 1111 Constitution Ave. NW,
• A net decrease to creditable expenditures is treated as
IR-6526, Washington, DC 20224. Don’t send Form 8082
a net positive adjustment to credits and increases the
to this address. Instead, see How and When To File,
product of the TNPA multiplied by the highest tax rate in
earlier.
effect. A net increase to creditable expenditures is treated
as a net negative adjustment that is excluded from the
calculation of the TNPA and is an adjustment that doesn’t
result in an IU.
• For the credit grouping, a net positive adjustment will
increase the product of the TNPA multiplied by the highest
tax rate in effect. A net negative adjustment, including net
negative adjustments resulting from a credit reallocation
adjustment, will be treated as an adjustment that doesn’t
result in an IU.

Step 7—Figure the IU Based on the Results of
Steps 4 Through 6 and Insert Those Results Into
the IU Formula

Figuring the IU

TNPA x rate* =
+ Sum of net positive adjustments
to creditable expenditure and
credit groupings:
= Total IU
* Highest rate in effect for the reviewed year under section 1 or 11.

Instructions for Form 8082 (Rev. Jan. 2024) 15

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