Issue Number:  2026-02

Inside This Issue

1. BBA Centralized Partnership Audit Regime
2. Designate a Partnership Representative
3. Elect Out of the Centralized Partnership Audit Regime
4. File an Administrative Adjustment Request under Bipartisan Budget Act of 2015 (BBA)
5. BBA Partnership Audit Process
6. Electronic Submission of Forms by Audited BBA Partnerships and Their Pass-Through Partners
7. OFSS Status

1.  BBA Centralized Partnership Audit Regime

NO UPDATE

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2.  Designate a Partnership Representative

NO UPDATE

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3.  Elect Out of the Centralized Partnership Audit Regime

NO UPDATE

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4.  File an Administrative Adjustment Request under Bipartisan Budget Act of 2015 (BBA)

A reminder for pass-through partners that received a Form 8986 related to a partnership that filed an AAR: The deadline to pay or push out further may be 9/15/2026 (see Part II, F on the Form 8986 you received). Don’t wait until the last minute to fax or mail the forms.

• Furnish a Form 8986 to each reviewed year partner of the pass-through partner.
• Submit Form 8985 and all Forms 8986 to the IRS as shown below:
  

* Do not batch submissions using multiple 8985s for the same source partnership and reviewed tax year. For example, Source Partnership files an AAR and furnishes Form 8986 to Pass-Through Partner. Because the IU calculation results in an amount greater than zero, Pass-Through Partner decides to report and pay an IU. However, because there are also adjustments that do not result in an IU, it prepares Form 8985 and Forms 8986 to further push out those adjustments to its 35 partners. Pass-Through Partner has a total submission of 109 pages (1 cover sheet, 1 Form 8985 and 35 Forms 8986). Because the total submission is over 100 pages, Pass-Through Partner cannot separate the 35 Forms 8986 into smaller batches and attach them to multiple 8985s to fall under the 100-page limit for faxing. Pass-Through Partner will instead need to mail all 109 pages to the mailing address as noted in the table above.

Important note: The above fax number is not for general use; use only for submitting Forms 8985/8986. Faxes containing more than 100 pages, unreadable submissions or other submissions received at this fax number will not be processed.

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5.  BBA Partnership Audit Process

NO UPDATE

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6.  Electronic Submission of Forms by Audited BBA Partnerships and Their Pass-Through Partners

A reminder for pass-through partners that received a Form 8986 related to an audited BBA partnership: The deadline to pay or push out further may be 9/15/2026 (see Part II, F on the Form 8986 you received). These must be submitted through the PBBA OFSS portal.

If you are new to the PBBA TCC and PBBA OFSS process, please review instructions on Electronic submission of forms by audited BBA partnerships and their pass-through partners | Internal Revenue Service page (www.irs.gov/bbaeSubmit).

Note: If you receive Error message F8985-040, it means that the pass-through partner that provided forms 8986 to you must electronically file such forms with the IRS and they must be in “accepted” status before your pushout forms can be accepted. In addition, your pushout forms must be in “accepted” status before next tier can submit their pushout forms.

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7.  OFSS Status

PLEASE NOTE: The PBBA OFSS PORTAL will be unavailable due to scheduled maintenance from Tuesday, August 25, 2026, at 5:00 p.m. ET until Thursday, August 27, 2026, at 8:00 p.m. ET, and from Tuesday, September 22, 2026, at 5:00 p.m. ET until Thursday, September 24, 2026, at 8:00 p.m. ET.

Please plan accordingly and do not attempt to access the PBBA OFSS portal during the maintenance period. 

PLEASE DO NOT WAIT UNTIL THE LAST MINUTE. Be sure to give yourselves enough time to submit forms and the Service enough time to process those submissions. A submission must be in “accepted status" before the expiration of your submission deadline.

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