Are there plans to update the Form 8082 instructions to address when an upper-tier partnership does not receive a Schedule K-3 from a lower-tier partnership

Yes, there are plans to update the Form 8082 instructions to address situations where an upper-tier partnership does not receive a Schedule K-3 from a lower-tier partnership. The current instructions for Form 8082 already provide guidance on how to handle inconsistencies and missing information from pass-through entities, including partnerships. Specifically, the instructions state that if a pass-through entity, such as a lower-tier partnership, does not provide a Schedule K-3 when required, the upper-tier partnership should use Form 8082 to notify the IRS of this inconsistency.

Here is a summary of the relevant guidance from the instructions:

1. Notice of Inconsistent Treatment: If the upper-tier partnership believes an item was not properly reported on the Schedule K-3 it received from the lower-tier partnership, or if it did not receive a Schedule K-3 by the due date for filing its return (including extensions), it should file Form 8082 to notify the IRS of the inconsistency.
2. Filing Form 8082: The upper-tier partnership should complete Parts I and II of Form 8082 to the best of its knowledge, indicating the inconsistency or missing information. It should also provide an explanation in Part III of the form.
3. Attachments: If the upper-tier partnership is reporting an inconsistency or missing information, it should attach any relevant schedules, statements, or forms that support its position.
4. Penalties: The instructions also mention that if the upper-tier partnership disregards the requirements for filing Form 8082, it may be subject to penalties under sections 6662 or 6663, in addition to any tax that results from a computational adjustment to make the amount or treatment of the item consistent with the amount or treatment on the pass-through entity's return.

By following these steps, the upper-tier partnership can ensure that it complies with IRS requirements and properly notifies the IRS of any inconsistencies or missing information related to Schedule K-3 from a lower-tier partnership.

Sources:
Instructions for Form 8082 (01/2024)
Partner’s Instructions for Schedule K-3 (Form 1065) (2023)
Instructions for Schedules K-2 and K-3 (Form 8865) (2023)
Partnership Instructions for Schedules K-2 and K-3 (Form 1065) (2023)
Instructions for Forms 8804, 8805, and 8813 (11/2022)
Instructions for Form 1065 (2023)
S Corporation Instructions for Schedules K-2 and K-3 (Form 1120-S) (2023)