IRS issues final regulations on IRC Section 754 elections

The IRS issued final regulations removing the signature requirement for partnership IRC Section 754 elections. Under the final regulations, the requirements for making an IRC Section 754 election are the following.

  1. A written statement

  2. Filed with the partnership return for the tax year during which the distribution or transfer occurs

  3. Within the correct filing period (with extensions)

The regulations are effective as of August 5, 2022. See complete final regulations (TD9963) below.

2022-16271
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