165PA Schedule K-1: Resident and Part-Year Resident Partner's Share of Arizona Partnership Adjustment (2024)

Who files this form

This schedule is for resident and part-year resident individual partners, and resident estate and trust partners, whose partnership passed through an assessment following an IRS audit.

The partnership prepares the schedule. Partners use it to report their share of the Arizona partnership adjustment on an amended Arizona income tax return.

Corporate partners must use Form 165PA, Schedule K-1(NR).

When it's due

Submit your 2024 Arizona amended return within 150 days of the IRS final determination date on line 1. Add 150 days to that date.

If the due date falls on a Saturday, Sunday, or legal holiday, the return is considered timely if it is postmarked the next business day.

What you'll need

Use the documents identified on the schedule:

• Form 165PA, Schedule K-1: Provides your share of the Arizona adjustment and the IRS final determination date.
• Form 140X: Used by resident and part-year resident individual partners to report the adjustment.
• Amended Form 141AZ, Schedule B: Used by resident estate and trust partners to report the adjustment.

The schedule also calls for the partner’s identifying number, the partnership’s EIN, and both parties’ names and addresses. If the “Amended” box is checked, line 2 asks for the date the original Form 165PA was filed.

How to file

Report the adjustment from line 3 on your amended Arizona return:

• Resident and part-year resident individuals: Report a positive adjustment on Form 140X, line 23, Additions to Income. Report a negative adjustment on line 25, Subtractions from Income, as a positive number.
• Resident estates and trusts: Report a positive adjustment on amended Form 141AZ, Schedule B, line B3. Report a negative adjustment on Schedule B, line B9, as a positive number.

Submit the amended return to the department. The supplied text does not give a mailing address or e-file instructions.

Common mistakes

• Using this schedule for regular partnership income: Do not use it to distribute a partner’s share of income from Form 165.
• Replacing an amount when “Original” is checked: This adjustment is in addition to the amount passed through on Form 165, Schedule K-1. Do not replace that original amount.
• Adding an amount when “Amended” is checked: This adjustment replaces the amount previously passed through on Form 165PA, Schedule K-1.
• Checking “Amended” without a prior schedule: Check it only if Form 165PA, Schedule K-1 for the same year was previously provided to this partner.
• Using the wrong reporting year: If you file on a calendar-year basis and the partnership files on a fiscal-year basis, report the adjustment on your amended return for the calendar year in which the partnership’s fiscal year ends.
• Using this schedule for a corporate partner: Corporate partners must use Form 165PA, Schedule K-1(NR).

Questions people ask

Why did I receive this schedule?

The IRS audited a partnership in which you are a partner, and the partnership passed through the assessment to its partners. This schedule helps you report your share of the Arizona adjustment on an amended Arizona return.

What does line 1 show?

Line 1 shows the date the IRS made its final determination. Use that date to calculate the 150-day deadline for submitting your 2024 Arizona amended return.

How do I report a negative adjustment?

Report it as a positive number on the applicable subtraction line: Form 140X, line 25, for resident and part-year resident individuals, or amended Form 141AZ, Schedule B, line B9, for resident estates and trusts.

Does an amended schedule replace the earlier adjustment?

Yes. If “Amended” is checked, the adjustment replaces the amount previously passed through on Form 165PA, Schedule K-1.

Official sources

• https://azdor.gov/forms