Essential IRS Changes Ahead for Partnerships

Partnerships, S corporations, and other passthrough entities are facing a new wave of Internal Revenue Service reporting changes, many of which are complex, technical, and still evolving. As we move into the 2026 tax filing season, one is clear: the IRS rules governing partnership reporting are becoming more intricate, and taxpayers will benefit from professional guidance more than ever.

This year, the American Institute of CPAs (“AICPA”) called on the IRS and Treasury to provide earlier notice, clearer instructions, and more time for partnerships and their advisors to implement new reporting requirements. The goal is simple and that is to reduce confusion while avoiding last-minute surprises that can lead to errors, penalties, or delays. While those recommendations are still being reviewed, they highlight what tax professionals, and their clients, are feeling every day, the reporting landscape shifting quickly.

For partnerships, this means preparing tax filings under new and upcoming rules that impact everything from K-1 disclosures to basis reporting, CAMT implications for corporate partners, and even potential changes to IRS Form 8308 reporting of partnership interest sales. These updates are not just technical, the affect how information flows between partners, how income is allocated, and how compliance risk is managed.

The IRS has released interim guidance to ease some burdens, such as simplified methods for calculating adjusted financial statement income under the CAMT framework. However, these temporary measures still require careful interpretation and planning. Many partnerships will face mixed elections, new documentation requirements, and expanded disclosure responsibilities.

And that is exactly where a trusted tax attorney can make the biggest difference.

At  Wilson Tax Law Group, APLC, we help partnerships understand what these IRS changes mean in practical terms, not just what the regulations say, but how they affect your filings, your partners, and your audit exposure. We stay ahead of IRS updates, advocate for your interests, and ensure that your reporting is accurate, defensible, and aligned with the most current guidance available.

As the IRS continues refining partnership reporting rules, having an experienced tax attorney on your side provides clarity, strategy, and peace of mind; especially when the stakes involve multi-partner allocations, complex transactions, or potential penalties.

If your partnership wants to get ahead of the 2026 filing season, now is the time to plan. We’re here to be your trusted partner and your strongest line of defense, every step of the way.

If you have any questions regarding your individual or businesses’ state and/or federal tax return(s)/tax liabilities or received a notice from the IRS, FTB, EDD, CDTFA or any other regulatory agency, please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.