Reissuing Notice 2019-20:Penalty Relief for Missing Negative Tax Basis

Attached  is Notice 2019-20, which is being reissued to include penalty relief under section 6038 and other penalty provisions.

This Notice provides a waiver of penalties under sections 6722, 6698, 6038 and other penalty provisions to certain persons and partnerships that file Schedules K-1 or other forms or statements that fail to report information about partners’ negative tax basis capital accounts for the 2018 tax year. The relief is conditioned on taxpayers providing the missing information in a separate schedule within a year of the original due date of the Schedule K-1 or other form or statement. Please share with your members and colleagues.

The attached file is blocked in yellow where changes were made.