Avoiding common partnership return filing errors
Follow the tips below to avoid common errors when filing your New York State partnership return.
Who must file Form IT-204, Partnership Return?
You must file a partnership return with New York State if the partnership has either of the following:
- at least one partner who is an individual, estate, or trust that is a resident of New York State, or
- any income, gain, loss, or deduction from New York sources, regardless of the amount of income (see page 2 of the Form IT-204 instructions for more information).
Form IT-204-IP, New York Partner’s Schedule K-1, Form IT-204-CP, New York Corporate Partner’s Schedule K-1, and IT-204.1, New York Corporate Partners’ Schedule K
You must file the following forms with your Form IT-204, depending on the type of partner in the partnership:
|
Partner type |
Form IT-204-IP for each partner |
Form IT-204-CP for each partner |
One Form IT-204.1 for all the applicable partners |
|---|---|---|---|
| Individual | X | ||
| Estate or trust | X | ||
| Partnership | X | X | |
| LLC treated as a partnership | X | X | |
| Article 9-A corporation | X | X | |
| LLC treated as a corporation | X | X |
You must also provide each of your partners with the following forms even if you are not required to file the form with your partnership return.
| Partner type | Form IT-204-IP | Form IT-204-CP |
|---|---|---|
| Individual | X | |
| Estate or trust | X | |
| Partnership | X | X |
| LLC treated as a partnership | X | X |
| Article 9-A corporation | X | |
| LLC treated as a corporation | X |
Number of partners (Form IT-204, Line F)
The number of partners listed in Item F must agree with the number of IT-204-IPs and IT-204-CPs filed with the partnership return. When entering the number of partners for each tax type below, include all partners during the tax year, even if they were no longer partners on the last day of the partnership’s tax year.
- Line F1, Article 22: A partner that is an individual, partnership or LLC treated as partnership for federal purposes, a trust, or estate.
- Line F2, Article 9-A: A partner that is a C corporation or S corporation that is taxed as a general business corporation under Article 9-A of the New York State Tax Law.
- Line F3, Other: Any partner that is not an Article 22 or Article 9-A partner (for example, telecommunications or insurance companies)
- Line F4, Total: Total of partners from lines F1 through F3
If you have partners that are partnerships or LLCs that are treated as partnerships for federal purposes, include them in the number of Article 22 partners only. Do not include them in the number of Article 9-A partners.
Who must calculate the formula basis allocation of income for the business allocation percentage (Form IT-204, Section 10, Part 2)?
A partnership that carries on business both in and out of New York State but does not maintain books and records from which the New York business income can be determined must complete the formula basis allocation of income schedule in Part 2 of Section 10 of the IT-204.
Do not complete the formula basis allocation of income schedule in Part 2 of Section 10 of the IT-204 if you:
- maintain books and records from which New York business income can be determined,
- do business entirely in New York, or
- have no New York source income and are filing a return specifically because you have a New York resident partner who is an individual, estate, or trust.
For more information, see: