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.
