Partnership Highlights

2017 HIGHLIGHTS

 

Partnership returns

A partnership that has no Arizona income, deductions or credits for a taxable year is not required to file a partnership return for that year.

 

Inclusion of federal return with Arizona return.

The department no longer requests you include a copy of your federal return with your Arizona return.

 

Bipartisan Budget Act of 2015 (P.L. 114-74)

The Bipartisan Budget Act of 2015 changed the federal statutes relating to partnership audits and adjustments for taxable years beginning in 2018. However, partnerships may elect the new treatment starting with the 2016 taxable year by making the federal “Election under Section 1101(g)(4)”.

  • If a partnership made this election for 2016, and then is issued a federal imputed underpayment adjustment by the IRS, the partnership must file changes to Arizona using Arizona Form 165PA. This form is available.
  • If a partnership does NOT make this election federally, it will continue reporting federal changes to Arizona on Arizona Form 165.