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Official form guide
Form 8985: Pass-Through Statement — Transmittal/Partnership Adjustment Tracking Report (Required Under Sections 6226 and 6227)
IRS Form 8985 is the Pass‑Through Statement used to report adjustments from an audited partnership or an AAR partnership. Direct and indirect pass‑through partners must file it by the extended due date of the partnership’s adjustment‑year return.
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IRS Form 8985 - Pass-Through Statement — Transmittal/Partnership Adjustment Tracking Report (Required Under Sections 6226 and 6227)
IRS Form 8985 is the Pass‑Through Statement used to report adjustments from an audited partnership or an AAR partnership. Direct and indirect pass‑through partners must file it by the extended due date of the partnership’s adjustment‑year return.
Risk Radar
Scan points- 1Missing the extended due date triggers a penalty.
- 2Failing to file Form 8985 by the extended due date of the partnership’s adjustment‑year return.
- 3Submitting a corrected Form 8985 after the 60‑day correction window without first obtaining IRS permission.
- 4Omitting required penalty codes, rates, or adjustment amounts in Part IV when penalties apply.
- 5Leaving Part V blank when a statement was used to support the original Schedule K and the item changed after the audit.
Plain English
This form tells the IRS what changes a partnership audit caused for each partner. Partners fill it out, include any penalties or interest, and send it with any payment required.
Submission Date
- Filing date: 2025-01-07 22:12:34
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when an audited partnership, AAR partnership, or pass‑through partner must summarize and transmit Forms 8986 and report a payment and related calculations.
- Check Form 8986 instead when you need to report Schedule K‑3 adjustments directly.
Form selector
Use this form or another form?
Reporting Schedule K‑3 adjustments from a partnership
Form 8986 is the required filing to detail partner’s share of adjustments
✓ Confirm that all Schedule K‑3 data is transferred to Form 8986
Submitting a tax payment with a check or money order
Form 8985‑V accompanies the payment and provides required payment details
✓ Verify payment type and include Form 8985‑V with the check
Making an electronic payment of the imputed underpayment
Electronic payment confirmation number is entered on Form 8985, Part III, item F
✓ Ensure electronic payment confirmation number is recorded on Form 8985
Deadline or filing window
The filing requirement is triggered when a pass‑through partner receives Form 8986 from an audited partnership or an AAR partnership. The partner must submit Form 8985 by the extended due date of that partnership’s adjustment‑year return. If a correction is needed, it can be filed within 60 days of the original due date without IRS permission; later corrections require IRS approval.
Checklist
What you need before filling it out
Part IV, column (f) Approved modifications
Total approved modifications amount · IRS notice of approved changes
Part IV, column (g) Reviewed year adjustments net of approved modifications
Net adjustment total · Form 8986 data
Part III, item F electronic payment confirmation number
Electronic payment confirmation number · IRS payment confirmation receipt
Signature block
Authorized signer's signature and date · Form 8985 signature line
Part V statement of IU, penalties, interest
Detailed calculation of IU, penalties, interest · Pass‑through partner’s calculation worksheet
Before you submit
- 1Verify that Part IV columns (f), (g), and (h) are filled according to the new headings
- 2Confirm that any approved modifications are entered in column (f)
- 3Ensure the net reviewed year adjustments are entered in column (g)
- 4Check box 3 for electronic payment or box 4 for check/money order if making a payment
- 5Enter the electronic payment confirmation number in Part III, item F (or the check number if applicable)
- 6Include a completed Part V statement with IU, penalty, and interest calculations when a payment is made
- 7Have the authorized PR or DI (for partnership) or authorized tax‑return signer (for pass‑through partner) sign and date the form
- 8Attach Form 8985‑V when submitting a check or money order payment
- 9Review the “as corrected” column in Part IV for any corrected figures
How to file this form
- 1Gather Forms 8986 and adjustment data from the audited or AAR partnership
- 2Complete Part IV, entering approved modifications (f), net adjustments (g), and any corrected figures (h)
- 3Prepare Part V statement with IU, penalty, and interest calculations if a payment is being made
- 4Indicate payment method by checking box 3 (electronic) or box 4 (check) and enter the confirmation or check number
- 5Sign and date the form as required by the signer rules
- 6Attach Form 8985‑V if payment is by check or money order
- 7Mail or e‑file the completed Form 8985 to the IRS submission address
- 8Retain a copy of the filed form and payment confirmation as proof of filing
Known limitations
- 1Form 8985 does not apply to partnerships that have not made the election under section 6226, because only audited partnerships that elected under that section use the form.
- 2Form 8985 is not required for AAR partnerships that neither push out adjustments to partners nor have adjustments that do not result in an IU; only those that meet one of those conditions must file.
- 3Form 8985 does not serve as the payment voucher for imputed underpayments; payments must be made with Form 8985‑V instead.
Field map
Compact field-by-field guide
Entity Info
1 items
Name and taxpayer ID of the entity claiming the credit.
Credit Info
1 items
Type of credit or incentive being claimed.
Calculation
2 items
The base amount used to calculate the credit.
Calculated credit amount after applying formulas and limitations.
Certification
1 items
Detailed breakdown supporting the credit calculation.
Signatures
1 items
Sign and date the form.
Almost done reviewing the fields?
Fillable formOpen in Editor->Form 8985 is the December 2024 revision; the instructions direct users to IRS.gov/Form8985 for the latest information and note that Part IV column headings have been changed and an “as corrected” column added, with updated guidance for Part V statements.
What changed or needs a fresh check
- Edition date — confirm the revision reads December 2024
- Fee — Not stated in the official source
- Mailing address — Not stated in the official source
- Signature — confirm the appropriate signer and date as required
Quick Facts
Downloads
After you file
- 1Retain the filed Form 8985 and any related Form 8986 copies for your records.
- 2If an error is discovered, submit corrected Form 8985 and corrected Form 8986 within 60 days of the original due date without needing IRS permission.
- 3If a correction is needed after the 60‑day window, contact the IRS first to obtain permission before resubmitting.
- 4When filing multiple batches of Form 8986, include an associated Form 8985 with box D checked on the first batch and box E marked “1 of X”; for subsequent batches, leave box D unchecked and mark “n of X” in box E.
- 5If you are paying an imputed underpayment with a check or money order, attach Form 8985‑V to the payment.
- 6Consult IRS.gov/Payments for available payment methods before sending a check or money order.
Sources
- SRCInstructions p.1 — audited partnership is a BBA partnership that made the election under section 6226.
- SRCInstructions p.2 — AAR partnership that pushes out adjustments or has non‑IU adjustments must include Forms 8985 and related Forms 8986.
- SRCInstructions p.3 — Form 8985‑V is included with a check or money order when paying an imputed underpayment.
- SRCInstructions p.2 — corrected Forms 8985 and related Forms 8986 may be submitted within 60 days of the due date without IRS permission.
- SRCInstructions p.2 — after the 60‑day correction period, the audited partnership must contact the IRS for permission to submit.
- SRCInstructions p.4 — first batch of Forms 8986 must have Form 8985 with box D checked and box E marked “1 of X”; subsequent batches use “n of X” and do not check box D.
- SRCInstructions p.3 — payment options are listed at IRS.gov/Payments.
- SRCNot stated in the official source — verify on the agency site
Common confusion points
Do I need to file Form 8985 if my partnership is not audited?
Many filers assume all partnerships must file, but the form is only for audited partnerships that elected under section 6226.
→ Verify that the partnership made the election under section 6226.
Should I use Form 8985 or Form 8985‑V when sending a check?
The two forms serve different purposes; Form 8985 reports adjustments, while Form 8985‑V is the payment voucher.
→ Use Form 8985‑V for any check or money order payment.
How do I label multiple batches of Form 8986?
The box‑D and box‑E tracking system can be confusing across batches.
→ Check box D on the first batch’s Form 8985 and enter “1 of X” in box E; for later batches, leave box D unchecked and enter “n of X”.
Can I correct a mistake after more than 60 days?
Filers often think the 60‑day window is the only correction period.
→ Contact the IRS for permission before submitting a correction beyond 60 days.
Do I report adjustments that result in an IU on Form 8985?
Some filers think all adjustments belong on Form 8985, but IU adjustments are handled on Form 8986.
→ Report only non‑IU adjustments on Form 8985; IU adjustments go on Form 8986.
Does an AAR partnership that does not push out adjustments need to file Form 8985?
The requirement is tied to specific actions, leading to uncertainty.
→ Confirm that the AAR partnership either pushes out adjustments or has non‑IU adjustments; otherwise, Form 8985 is not required.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 8985 — submit corrected forms within 60 days, or obtain IRS permission for later corrections.
Questions about IRS Form 8985
What is IRS Form 8985 used for?
This form tells the IRS what changes a partnership audit caused for each partner. Partners fill it out, include any penalties or interest, and send it with any payment required.
Who must file IRS Form 8985?
Direct and indirect pass‑through partners of an audited partnership or an AAR partnership must file IRS Form 8985.
What information does IRS Form 8985 require?
The form collects the entity’s identifying information (Part I), the audited partnership details (Part II), the partner’s name, tax year and imputed underpayment amounts (Part III), any penalties (Part IV), and additional statements (Part V).
When is IRS Form 8985 due?
It is due on the extended due date of the audited partnership’s adjustment‑year return (or the AAR partnership’s adjustment‑year return).
How do I complete IRS Form 8985?
First, complete Part I with the entity’s information, then fill Part II with the partnership’s adjustment‑year details. Next, enter the partner’s name, tax year ending, and imputed underpayment amounts in Part III. Report any applicable penalties in Part IV and add needed explanations in Part V. Finally, sign the form before submitting.
What happens if IRS Form 8985 is filed incorrectly?
Missing the deadline can trigger a penalty, and any required payment must include interest calculated from the return due date.
Do I need to file Form 8985 if my partnership is not audited?
Many filers assume all partnerships must file, but the form is only for audited partnerships that elected under section 6226. Verify that the partnership made the election under section 6226.
Should I use Form 8985 or Form 8985‑V when sending a check?
The two forms serve different purposes; Form 8985 reports adjustments, while Form 8985‑V is the payment voucher. Use Form 8985‑V for any check or money order payment.
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