Draft Form 7217 for Reporting Property Distributed by a Partnership
The IRS released a draft of new Form 7217 which would require partners to report basis calculations for assets received in partnership distributions. If finalized it will apply to 2024 filings and reflects the IRS push for more partnership transparency.
By Chris Keegan, CPA-Austin
The IRS has recently released a draft of the new Form 7217, Partner’s Report of Property Distributed by a Partnership, and is currently requesting comments.
Form 7217 is designed to facilitate reporting of property distributions to partners. This form is part of a broader effort in recent years by the IRS to gather more information related to partnerships and their partners.
Partnerships have traditionally provided information to partners to assist them in determining their basis in distributed assets. Until now, there has not been a requirement for the partner to report their basis calculation for assets received. Form 7217 will include information on the distributed assets including the partnership’s basis in the assets, fair market value of the assets, and basis adjustments as required under various provisions of the Internal Revenue Code including Sections 732, 734 and 743.
If finalized by the IRS, Form 7217 will be required beginning with 2024 tax filings.
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