Tax Facts

8597 / What reporting requirements are imposed upon pass-through entities under the Section 199A regulations?

The Section 199A regulations impose certain reporting requirements on entities treated as “relevant pass-through entities” (RPEs). A RPE must identify on Schedule K-1 issued to owners, for any trade or business, the following information:
Each owner’s share of QBI, W-2 wages and UBIA of qualified property attributable to each trade or business,

Whether any of the trades or businesses is an SSTB, and

On an attachment to Schedule K-1, the RPE must report each owner’s allocated share of any qualified REIT dividends or qualified PTP income or loss received by the RPE.

The entity must also report on Schedule K-1 any QBI, W-2 wages, UBIA of qualified property, or SSTB determinations that are reported to it by any other pass-through entity in which it owns a direct or indirect interest.1

If the RPE fails to satisfy these reporting requirements, the owner’s share of positive QBI, W-2 wages and UBIA of qualified property will be presumed to be zero.2

1. Treas. Reg. § 1.199A-6(b)(3)(ii).

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