IRS Instruction 8979 – IRS Forms, Instructions, Pubs 2026

IRS Instruction 8979 – IRS Forms, Instructions, Pubs 2026 – SEO Keywords: IRS Form 8979, Instructions for Form 8979, Partnership Representative Designation, Partnership Representative Resignation, BBA Partnership PR, Designated Individual DI, Centralized Partnership Audit Regime

Partnerships subject to the Bipartisan Budget Act of 2015 (BBA)—which applies to most partnerships with tax years beginning after 2017—must navigate the Centralized Partnership Audit Regime (CPAR). At the heart of this is the Partnership Representative (PR), the sole person who can represent the partnership during IRS audits, adjustments, and proceedings.

IRS Form 8979 (Partnership Representative Designation or Resignation) and its instructions (Rev. September 2025) are essential tools for designating, changing, or resigning a PR—and appointing a Designated Individual (DI) if the PR is an entity.

This comprehensive guide breaks down everything you need to know about IRS Instruction 8979, based on the latest official IRS documents. Whether you’re filing during an audit, with an Administrative Adjustment Request (AAR), or in other specific scenarios, this article ensures compliance and avoids costly mistakes.

What Is IRS Form 8979 and Why Does It Matter?

Form 8979 is a one-page IRS form used by BBA partnerships to:

  • Designate a new Partnership Representative (individual or entity) and appoint a Designated Individual (if applicable), which automatically revokes any prior designation.
  • Resign as the PR or DI.

Key fact: Partnerships must designate a PR on their Form 1065 for each tax year. Only one PR can exist at a time, and the designation stays in effect until revoked, resigned, or invalidated by the IRS.

Who uses it?

  • Partnerships (via an authorized person, like a partner from that tax year).
  • The current PR or DI (for resignation only).

Important update (September 2025): The form and instructions were streamlined. The title changed from “Partnership Representative Revocation, Designation, and Resignation” to “Partnership Representative Designation or Resignation.” Parts were simplified for easier use.

Key Definitions in IRS Instruction 8979

Understanding these terms is critical for compliance:

  • Partnership Representative (PR): Any person (individual, entity, or even the partnership itself) who represents the partnership in BBA proceedings. The PR has broad authority—IRS actions bind all partners.
  • Designated Individual (DI): Required if the PR is an entity. This individual acts on the entity’s behalf.
  • Substantial Presence in the United States: Both PR and DI must meet these three criteria:
    1. Available for in-person IRS meetings in the U.S. at reasonable times.
    2. Have a U.S. Taxpayer Identification Number (TIN).
    3. Have a U.S. street address and U.S. area code phone number.
  • Authorized Person: A partner during the relevant tax year who can sign the form on the partnership’s behalf.
  • BBA Partnership: Most partnerships (unless they elected out of CPAR).

Pro tip: Non-compliance with substantial presence rules invalidates the designation.

When to File Form 8979: Specific Situations Only?

You can’t file Form 8979 anytime—it’s restricted to these scenarios (per the latest instructions):

  • During an IRS examination or proceeding: Submit directly to your IRS contact (e.g., revenue agent) after receiving Letter 2205-D, 5893, or 5893-A.
  • With an Administrative Adjustment Request (AAR): If filed for reasons beyond just designation (before audit letters).
  • With Form 8985 or Form 8988: For pass-through adjustments or Section 6226 elections.
  • Statute extension requests: When seeking private letter rulings or other actions requiring extensions.
  • IRS notification of no PR: Partnerships have 30 days to file; otherwise, the IRS designates one.
  • Resignation: By the PR or DI to the IRS contact during proceedings.

Note: Form 8979 applies to one tax year only.

Step-by-Step: How to Complete IRS Form 8979?

Here’s a clear guide to filling out the form, based on the September 2025 revision.

Partnership Information (Top of Form)

  • Partnership name, EIN, full U.S. address.
  • Tax year ending (MM/DD/YYYY).
  • Check the box if filing with an AAR.

Part I: Reason for Filing

  • Line 1: Designation/appointment (with or without revocation). Select this to name a new PR (and DI if entity). This revokes prior ones.
  • Line 2: Resignation of PR or DI.

Part II: Designation/Appointment (for Line 1)

  • Individual PR: Enter name, U.S. mailing address, TIN, U.S. area code phone. Skip DI section.
  • Entity PR: Enter entity details (name, address, TIN, phone) plus DI details (name, address, TIN, phone). Both must have substantial U.S. presence.

Caution: Omitting a DI for an entity PR makes the designation invalid—the old PR stays in place.

Part III: Resignation (for Line 2)

  • Enter resigning PR or DI’s name, address, TIN, and phone.
  • For entity PR resignation: The DI must sign (appointment terminates).

Part IV: Signature Section

  • Section A (Designation): Authorized person signs and dates. Include name and title (e.g., “Jane Doe, President” if signing for a corporation).
  • Section B (Resignation): Resigning PR/DI signs. Specify role (e.g., “John Smith, Resigning Partnership Representative of ABC Partnership”).

Examples from IRS Instructions:

  • Corporation signing: “ABC Corporation, Jane Dove, President.”
  • Individual: Just sign and print name.
  • LLC: “DEF LLC, Mary Wren, Manager.”

How to Designate a Partnership Representative?

  1. Choose an eligible PR (any person/entity with substantial U.S. presence).
  2. If entity, appoint a DI simultaneously.
  3. Have an authorized person complete and sign Part I (Line 1), Part II, and Part IV (Section A).
  4. Submit in an approved situation (e.g., to IRS examiner).

A valid designation automatically revokes the prior PR.

How to Resign as Partnership Representative or Designated Individual?

  1. Check Part I, Line 2.
  2. Complete Part III with your details.
  3. Sign Part IV, Section B (specify your role).
  4. Submit to your IRS contact during proceedings.

Consequences of resignation: No PR in effect. The IRS will request a new designation within 30 days—or appoint one itself.

Common Mistakes to Avoid (and Penalties)

  • Failing to appoint a DI for an entity PR.
  • Using a PR/DI without substantial U.S. presence.
  • Filing outside approved situations (form will be rejected).
  • Incorrect or incomplete signatures.
  • Not using the latest September 2025 version.

Penalties: Incorrect information can lead to IRS invalidation, delays, or imputed underpayments. Always double-check against official instructions.

Where to File Form 8979?

  • With AAR: Follow IRS.gov/BBAAAR instructions.
  • All other cases: Mail or fax to your current IRS employee point of contact (revenue agent, appeals officer, or counsel).

Address changes? Use Form 8822 or 8822-B—not Form 8979.

Download Official Resources

For the latest developments, visit IRS.gov/Form8979.

Final Thoughts: Stay Compliant in 2026 and Beyond

The IRS Instruction 8979 process ensures smooth BBA proceedings by clearly identifying who speaks for the partnership. With the 2025 updates making the form simpler, now is the time to review your partnership’s PR status—especially if under audit or planning adjustments.

If you’re unsure, consult a tax professional familiar with BBA rules. Proper use of Form 8979 protects your partnership from unnecessary IRS interventions and ensures all partners are bound by valid representations.

This article is for informational purposes only and is not tax advice. Always refer to the official IRS publications for your specific situation.

Last updated: February 2026 (based on Rev. September 2025 instructions).