Troubled by the difficulty in making administrative adjustment requests before the IRS, the AICPA has proposed a new form, AAR-EZ, to help ease the process. Currently, entities that want to make such a request must either complete and submit Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) and Form 1065, U.S. Return of Partnership Income, check box G(5) ‘Amended return’ section, or they must complete and mail Form 1065-X, Amended Return or Administrative Adjustment Request (AAR) to the service center address where the original return was mailed.

The AICPA said completing and filing AARs can be a time-consuming, administrative burden for partnerships and practitioners. Making minor adjustments to previously filed partnership returns, including those that are not relevant in determining the tax liability of any partners, is unreasonably difficult due to the complexity of the AAR process.

While the specifics of the proposed form are not yet released, the AICPA said the proposed AAR-EZ would provide short and long-term solutions to correct minor administrative errors that occur when completing partnership tax returns, such as a transposition error in a partner’s social security number or address on an issued Schedule K-1. This would alleviate bottlenecks and resource constraints, streamline the AAR process and increase compliance.

The NYSSCPA's Tax Planning for Business Entities Conference will be on Dec 02, 2021. You can register for the in-person event here, and the webcast here.