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).

2.  Prop. Treas. Reg. § 1.199A-6(b)(3).

Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.