Correcting Capital Account Errors on Partnership Returns
A Comprehensive Guide to Corrections, Allocations, and True-Ups of Capital Accounts
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax professionals and advisers with an in-depth and practical guide to the accounting and tax disclosure requirements to correct and adjust capital account balances. The panel will focus on reconstructing capital accounts in light of the required reporting of negative tax basis capital accounts and the upcoming required reporting of all tax basis capital accounts. The webinar will also cover the interpretation of partnership agreements and guide advisers on applying partnership provisions to corrective entries and tax disclosures.
Outline
- Partnership agreement interpretation
- New required reporting of negative tax basis capital
- Required reporting of tax basis capital
- Identifying capital account misstatements
- Book entries
- Tax reporting and disclosures
- Interaction with new partnership audit rules
- A case study with illustrations
Benefits
The panel will discuss these and other critical issues:
- Identifying errors, miscalculations, or misstatements in capital accounts
- Determining and reporting negative tax basis capital
- Basis and capital account corrections where a valid Section 754 election was in place
- Book vs. tax-corrective adjustments
- Prior year adjustments
- Impact of new partnership audit rules
Faculty

John T. Alfonsi, CPA
Managing Director
Cendrowski Corporate Advisors
Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience.... | Read More
Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience. In the tax planning and consulting arena, he works primarily with partnerships and with private equity, venture capital and hedge funds.
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John M. Colvin
Partner
Colvin & Hallett
Mr. Colvin's practice emphasizes federal tax controversies and white-collar criminal defense. He is a frequent... | Read More
Mr. Colvin's practice emphasizes federal tax controversies and white-collar criminal defense. He is a frequent speaker on tax topics and chairs the ABA Taxation Section's Subcommittee for Legislative and Administrative Developments.
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Joseph C. Mandarino
Partner
Smith Gambrell & Russell
Mr. Mandarino's practice focuses on corporate, tax and finance law. He is involved with a wide variety of... | Read More
Mr. Mandarino's practice focuses on corporate, tax and finance law. He is involved with a wide variety of businesses and transactions, including experience with compliance, planning and M&A activities for partnerships, individuals and corporations. Mr. Mandarino writes and speaks extensively on a wide range of business, tax and finance topics.
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CPE credit is not available on downloads.
CPE On-Demand