Do I need to amend Business 1065?

[JeffBau44]

I forgot to update a partner's capital account with a step-up basis (Schedule M-2 line 4).  Do I need to send in an amended 1065 form for 2020 (nothing on pages 1-4 changed)?  

[ZoltanB45]

It wont affect the personal return but when you file the 1065 next year, the beginning capital account will be different from the prior year's ending. It is not necessary to amend the return.

[JeffBau44]

Thank you for the response.  Will the different starting amount for 2021 (opposed to the listed ending Capital amount for 2020) cause an audit or anything I need to worry about?

[ZoltanB45]

It should not as the IRS has a lot to look at besides matching partners or shareholders capital accounts to the prior year.