What do I enter for "Gross receipts for section 448 (c)"?

[vistaoutdoor]

TurboTax for business 2021 does NOT support this entry and states to fill in the appropriate tax form. So the question remains, what is the form and how do you enter it?   This is not the 1065 line 1a entry. It is a 3 year history of gross receipts. 

[Mike9241]

there is no form to submit with your return. omit entering this.   what this is all about is whether certain entities (partnerships with C-corp partners. C corporations, and tax shelters)  must use the accrual basis of accounting.   this would only apply to those certain entities if gross receipts were over $25,000,000 for 3 consecutive years.

if you have further interest read the code section

https://www.law.cornell.edu/uscode/text/26/448 

[Ronton617]

Thank you for this answer. 

[davehamm]

Here's the relevant paragraph from the IRS publication which clarifies what to do with a Box 20 Code AG "Gross receipts for section 448 (c)".

Instructions for Form 1065 (2023)
U.S. Return of Partnership Income

https://www.irs.gov/instructions/i1065#en_US_2021_publink100016024

"Gross receipts for section 448(c) (code AG). Regulations section 1.163(j)-2(d)(2)(iii) requires that partners in a partnership include a share of partnership gross receipts in proportion to their share of gross income under section 703 (unless the partnership is treated as one person under the aggregation rules of section 448(c)). Partnerships with current year gross receipts (defined in Regulations section 1.448-1T(f)(2)(iv)) greater than $5 million are required to report to partners their distributive shares of their current year gross receipts, as well as their distributive shares of gross receipts for the 3 immediately preceding tax years. If a partnership and a partner are treated as a single employer under the section 448(c) aggregation rules, and the partnership has current year gross receipts greater than $5 million, then the partnership should also report its current year total gross receipts, as well as its total gross receipts for the 3 immediately preceding tax years, to that partner. See
IRS.gov/newsroom/ faqs-regarding-the-aggregation-rules-under-section-448c2–that-apply-to-the-section-[product key removed]ess-exemption. Partnerships whose current year gross receipts are less than or equal to $5 million may also use this code to report gross receipts."

[davehamm]

Further, from the IRS partner instructions:

Partner’s Instructions for Schedule K-1 (Form 1065) (2023)
Partner's Share of Income, Deductions, Credits, etc. (For Partner's Use Only)
https://www.irs.gov/instructions/i1065sk1
About 75% of the way down:
"Code AG. Gross receipts for section 448(c). Regulations section 1.163(j)-2(d)(2)(iii) requires that partners in a partnership include a share of partnership gross receipts in proportion to their share of gross income under section 703 (unless the partnership is treated as one person under the aggregation rules of section 448(c)). Partnerships with current year gross receipts (defined in Regulations section 1.448-1T(f)(2)(iv)) greater than $5 million are required to report to their partners their distributive shares of current year gross receipts, as well as their distributive shares of gross receipts for the 3 immediately preceding tax years. If a partnership and a partner are treated as a single employer under the section 448(c) aggregation rules, and the partnership has current year gross receipts greater than $5 million, then the partnership should also report its total current year gross receipts, as well as its total gross receipts for the 3 immediately preceding tax years, to that partner. See IRS.gov/newsroom/ faqs-regarding-the-aggregation-rules-under-section-448c2–that-apply-to-the-section-[product key removed]ess-exemption.
If a partner needs gross receipts information from a partnership in order to figure the gross receipts test under section 448(c), and the partnership didn't report gross receipts on the Schedule K-1, the partner should request this information from the partnership."