1998
Department of the Treasury
Internal Revenue Service
Instructions for Form
1065-B
U.S. Return of Income for Electing Large Partnerships
Section references are to the Internal Revenue Code unless otherwise noted.
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the
Internal Revenue laws of the United States. You are required to give us the information. We need
it to ensure that you are complying with these laws and to allow us to figure and collect the right
amount of tax.
You are not required to provide the information requested on a form that is subject to the
Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records
relating to a form or its instructions must be retained as long as their contents may become
material in the administration of any Internal Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file this form and related schedules will vary depending on
individual circumstances. The estimated average times are:
If you have comments concerning the accuracy of these time estimates or suggestions for
making these forms simpler, we would be happy to hear from you. You can write to the Tax Forms
Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. DO NOT send
the tax form to this address. Instead, see Where To File on page 3.
Unresolved Tax Problems
Most problems can be solved with one contact
by calling, writing, or visiting an IRS office. But
if the partnership has tried unsuccessfully to
resolve a problem with the IRS, it should
contact the Taxpayer Advocate's Problem
Resolution Program (PRP). Someone at PRP
will assign the partnership a personal advocate
who is in the best position to try to resolve the
problem. The Taxpayer Advocate can also offer
special help if the partnership has a significant
hardship as a result of a tax problem. Contact
the Taxpayer Advocate if:
l The partnership has tried unsuccessfully to
resolve a problem with the IRS and has not
been contacted by the date promised, or
l The partnership is on its second attempt to
resolve a problem.
You may contact a Taxpayer Advocate by
calling a new toll-free assistance
number,1-877-777-4778. Persons who have
access to TTY/TTD equipment may call
1-800-829-4059 and ask for the Taxpayer
Advocate. If the partnership prefers, it may
write to the Taxpayer Advocate at the IRS
office that last contacted the partnership.
While Taxpayer Advocates cannot change
the tax law or make a technical tax decision,
they can clear up problems that resulted from
previous contacts and ensure that the
partnership's case is given a complete and
impartial review. Taxpayer Advocates are
working to put service first. For more details,
see Pub. 1546, The Problem Resolution
Program of the Internal Revenue Service.
How To Get Forms and
Publications
Personal Computer
Access the IRS's Internet web site at
www.irs.ustreas.gov to do the following:
l Download forms, instructions, and
publications.
l See answers to frequently asked tax
questions.
l Search publications on-line by topic or
keyword.
Contents
Page
Analysis of Net Income (Loss)
.
.
.
.
21
Schedule L—Balance Sheets
.
.
.
.
21
Schedule M-1—Reconciliation of Income
(Loss) per Books With Income (Loss)
per Return
.
.
.
.
.
.
.
.
.
.
.
.
21
Schedule M-2—Analysis of Partners'
Capital Accounts
.
.
.
.
.
.
.
.
.
22
Codes for Principal Business Activity and
Principal Product or Service
.
.
.
.
23
Form
Recordkeeping
Learning about the
law or the form
Preparing the form
Copying,
assembling,
and sending the
form
to the IRS
1065-B
43 hr., 46 min.
17 hr., 50 min.
28 hr., 48 min.
2 hr., 41 min.
Schedule D
(Form 1065-B)
12 hr., 55 min.
1 hr., 47 min.
2 hr., 5 min.
Schedule K-1
(Form 1065-B)
9 hr., 5 min.
7 hr., 20 min.
11 hr., 31 min.
Schedule L
(Form 1065-B)
15 hr., 47 min.
12 min.
28 min.
Schedule M-1
(Form 1065-B
3 hr., 21 min.
12 min.
16 min.
Schedule M-2
(Form 1065-B)
2 hr., 52 min.
6 min.
9 min.
Contents
Page
Contents
Page
Elections Made by Each Partner
.
.
.
6
Unresolved Tax Problems
.
.
.
.
.
.
.
1
Partner's Dealings With Partnership
.
6
How To Get Forms and Publications
.
.
2
Contributions to the Partnership
.
.
.
6
General Instructions
.
.
.
.
.
.
.
.
.
2
Dispositions of Contributed Property
.
6
Purpose of Form
.
.
.
.
.
.
.
.
.
.
2
Recognition of Precontribution Gain on
Certain Partnership Distributions
.
.
6
Electing Large Partnership Status
.
.
2
Definitions
.
.
.
.
.
.
.
.
.
.
.
.
.
2
Unrealized Receivables and Inventory
Items . . . . . . . . . . . . . . .
6
Termination of the Partnership
.
.
.
.
2
When To File
.
.
.
.
.
.
.
.
.
.
.
.
2
Activities of Electing Large Partnerships
6
Where To File
.
.
.
.
.
.
.
.
.
.
.
3
Special Reporting Requirements
.
.
.
7
Who Must Sign
.
.
.
.
.
.
.
.
.
.
.
3
Specific Instructions
.
.
.
.
.
.
.
.
.
9
Interest and Penalties
.
.
.
.
.
.
.
.
3
General Information
.
.
.
.
.
.
.
.
.
9
Accounting Methods . . . . . . . . .
3
Part I—Taxable Income or Loss From
Passive Loss Limitation Activities . .
9
Accounting Periods
.
.
.
.
.
.
.
.
.
3
Rounding Off to Whole Dollars
.
.
.
.
4
Part II—Taxable Income or Loss From
Other Activities
.
.
.
.
.
.
.
.
.
.
13
Recordkeeping
.
.
.
.
.
.
.
.
.
.
.
4
Schedule A—Cost of Goods Sold
.
.
13
Administrative Adjustment Requests
.
4
Schedule B—Other Information
.
.
.
14
Other Forms That May Be Required
.
4
Schedule D—Capital Gains and Losses
14
Attachments
.
.
.
.
.
.
.
.
.
.
.
.
5
General Instructions for Schedules K and
K-1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
16
Overview . . . . . . . . . . . . . .
5
Separately Stated Items
.
.
.
.
.
.
.
5
Specific Instructions for Schedules K and
K-1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17
Limitations
.
.
.
.
.
.
.
.
.
.
.
.
.
5
Elections Made by the Partnership
.
.
5
Cat. No. 25982P
