IRS Issues Instructions for Partnerships to Report Net Investment Income

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The Internal Revenue Service has issued draft instructions for two partnership return forms to take into account certain types of gross income for the purposes of the net investment income tax.
The agency on Jan. 7 issued 2013 draft instructions for Form 1065, U.S. Return of Partnership Income, and Form 1065-B, U.S. Return of Income for Electing Large Partnerships. A draft of Form 1065 was issued Jan. 2 (02 DTR G-2, 1/3/14).
An election under Treasury Regulations Section 1.1411-10(g) allows partnerships that include tax code Section 951 inclusions for amounts included in gross income of U.S. shareholders, or Section 1293 inclusions for income from qualified electing funds (QEFs).

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