The IRS issued Revenue Procedure 2020-23 that allows, once again, the amending of Bipartisan Budget Agreement (BBA) partnership tax returns once Form 8609 is received for 2018 tax returns, as long as the partnership files an amended return by September 30, 2020.
Due to recent changes to the partnership audit regime pursuant to the BBA, a new process for amending tax returns changed when Housing Credits could be claimed. Prior to the change, credits could be claimed by amending a previously filed return upon receipt of Form 8609, even if the form issuance was delayed. The change no longer allowed partnerships to file amended returns. Instead, a partnership would have been required to file an administrative adjustment request (AAR) and the investor would generally claim the Housing Credits included in an AAR on the tax return for the year in which the AAR is filed. This change could have created delays that would ultimately impact the amount of tax credit equity available for properties. The new revenue procedure resolves this issue for 2018.
