8597 / What reporting requirements are imposed upon pass-through entities under the Section 199A regulations?

The Section 199A regulations impose certain reporting requirements on entities treated as "relevant pass-through entities" (RPEs). A RPE must identify on Schedule K-1 issued to owners, for any trade or business, the following information:

Each owner's share of QBI, W-2 wages and UBIA of qualified property attributable to each trade or business,

Whether any of the trades or businesses is an SSTB, and

On an attachment to Schedule K-1, the RPE must report each owner's allocated share of any qualified REIT dividends or qualified PTP income or loss received by the RPE.

If the RPE fails to satisfy these reporting requirements, the owner's share of positive QBI, W-2 wages and UBIA of qualified property will be presumed to be zero.²