Treasury, IRS Finalize Change to Partnership-Exchange Reporting

May 19, 2026, 1:15 PM UTC

Michael Rapoport

Senior Reporter, Bloomberg Tax

The Treasury Department and the IRS finalized regulations that modify reporting requirements for sales or exchanges of certain interests in partnerships owning inventory or unrealized receivables.

The rules (TD 10048; RIN 1545-BR54) issued Tuesday finalize proposed regulations that were issued last August.

The regulations remove a rule finalized in November 2020 that requires a partnership to give a transferor partner information about an exchange to submit with their income tax return.

After the 2020 rule, the IRS had set a deadline of Jan. 31 of the following year to report the information. But Treasury and the IRS received ...