IRS issues draft Form 7217 for comment

The Internal Revenue Service is looking for public comments on draft Form 7217 and its instructions.

Last month, the agency revised the draft 7217 with the title "Partner's Report of Property Distributed by a Partnership."

This is a new form for distributions to partners during tax year 2024. The 7217 is to report the basis of all distribution of property that a partner receives from a partnership in a non-liquidating or liquidating distribution.

Daniel Acker/Bloomberg

Comments can be submitted to the IRS about drafts, instructions or publications on the IRS Draft tax forms page.

In July, the service posted an early release draft of the 7217, "Distributions from a Partnership of Property with Partner Basis Adjustments," on IRS.gov, as well as draft instructions on Sept. 3.

The instructions state that any partner receiving a property distribution from a partnership must file a 7217 regardless of whether there is a basis adjustment in the hands of the partner because of the distribution.

Form 7217 is not filed for distributions that consist of only money or marketable securities treated as money.