Corporations and Partnerships to Tell More About Ownership

The IRS issued proposed revisions to Form 1120, U.S. Corporation Income Tax Return, and Form 1065, U.S. Return of Partnership Income , that would ask for more ownership information. Corporations would be required to identify individuals who own at least 50% of the voting power of all classes of the corporation’s stock entitled to vote and entities holding at least 10% of voting power. The reporting corporation also would have to identify other foreign or domestic corporations, partnerships or trusts in which it owns at least 10% of voting stock or interest, as well as any disregarded entity it owns. Partnerships would list entities having a 10% or greater ownership interest in them directly or indirectly, along with entities in which the partnership owns at least a 10% interest. In addition, corporations with more than $10 million in assets would be asked about transfers of interest, cost-sharing arrangements and changes in accounting methods. Pending the results of comments received in August and September, the IRS plans to have the revised forms and related schedules ready for tax years ending on or after Dec. 31, 2008.