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What is found on schedule M-2 for 1065

What is found on schedule M-2 for 1065

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Schedule M-2 -- Analysis of Partner's Capital Accounts is the section in Form 1065 - U.S Return of Partnership Income where the partnership reports to the IRS what caused the changes to the partner's capital accounts on the partnership's books and records.

This section of tax return is used by the IRS to verify the accuracy of the tax reporting because analysing the changes to the capital accounts should be consistent with the income reporting and the balance sheet.

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