AICPA Urges Permanent K-1 Optional Partnership Income Reporting

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The optional reporting of income from partnership interests on Form 990 should be made permanent, the American Institute of Certified Public Accountants says, in one of several high priority recommendations on how to improve the form. While Announcement 2012-19 made it optional to report income from partnership interests using information from Form 1065, Schedule K-1, the instructions to date indicate Schedule K-1 must be used for Form 990 reporting. Yet AICPA says that many organizations, particularly those with large endowments, hold partnership investments that are recorded on a mark-to-market basis for GAAP accounting purposes.

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