Alaska Partnership Information Return Instructions

Partnership Information Return Instructions
Form 6900i
Instructions For Form 6900
2022 Alaska Partnership Information Return
What’s New.................................................................................. 1
Avoid Common Mistakes.............................................................. 1

GENERAL INSTRUCTIONS
Adoption of the Internal Revenue Code....................................... 1
Attribution Rule............................................................................. 1
Limited Liability Company (LLC).................................................. 1
Purpose of Form........................................................................... 2
Who Must File.............................................................................. 2
How Income is Shared Among Partners...................................... 2
Publicly Traded Partnerships........................................................ 2
When to File................................................................................. 2
Extension of Time to File.............................................................. 2
Who Must Sign............................................................................. 2
Where to Send Return.................................................................. 2
Other Related Forms.................................................................... 2
Amended Returns........................................................................ 2
Internal Revenue Service (IRS) Audit........................................... 2
Penalties....................................................................................... 3
Paid Preparer Authorization......................................................... 3
If You Need Help.......................................................................... 3
Required Attachments.................................................................. 3

SPECIFIC INSTRUCTIONS
Partnership Identification.............................................................. 3
Contact Person............................................................................. 3
Return Information........................................................................ 3
Other Information......................................................................... 3
Schedule A................................................................................... 4
Schedule B................................................................................... 5
Form 6900, Schedule K-1............................................................ 6

WHAT’S NEW
Electronic Filing

Electronic filing is available for the Alaska Partnership Information
Return (Form 6900). The division’s portal for filing returns and
reports, Revenue Online, is at online-tax.alaska.gov.
A taxpayer is required to electronically file any return or report,
unless a waiver is granted by the Department of Revenue (DOR).
Amended returns for tax periods ending after July 1, 2016 are
required to be electronically filed and fall under the definition of a
“return”. Failure to file electronically may result in a penalty. The
penalty is (the greater of) $25 or 1% of the total tax due before
application of payments. (See AS 43.05.045 and AS 43.05.220(f).)
A taxpayer may apply for a waiver if the taxpayer does not have
the capability of submitting Form 6900 electronically. The taxpayer
must submit an Electronic Filing Waiver Application (Form 773) at
least 30 days before the return is due. The waiver application is
online at tax.alaska.gov, or call (907) 334-2524 to have one mailed
to you.
The taxpayer will be notified by mail whether the waiver application
is approved or denied. If the waiver application is approved, it
is valid for five years after the first tax filing due date after it is
approved.

A waiver will not be granted to a partnership if that partnership is
required to file its federal return electronically.

Avoid Common Mistakes

To facilitate the processing of your return, be sure to do the
following:
1) Do not file Form 6900 if you are not required to file. See Who
Must File section on page 2.
2) Income is not apportioned at the partnership level. The partner
itself is treated as if it had directly conducted the activities in
the state.
3) If amounts are entered on Schedule A, Column A, enter the
distributable percentage or “various” in Column B, and enter
the distributable portion in Column C. Amounts should not be
entered in Column A only.
4) If the partnership has nexus in Alaska and corporate or
partnership partners listed on Schedule B, line 1, fill out
Schedules A and K-1.
5) List all partners on Schedule B, lines 1 and 3. If all partners do
not fit on one Schedule B, use multiple Schedules B. Do not
attach a statement listing the partners.
6) Do not attach Schedule K-1 for any partners that are natural
persons or effectively treated as natural persons and listed on
Schedule B, line 3.

GENERAL INSTRUCTIONS
Adoption of the Internal Revenue Code

Under AS 43.20.021, Alaska adopts the Internal Revenue Code,
Sections 1-1399 and 6001-7872, with full force and effect, unless
excepted to or modified by provisions of Alaska law. This includes
federal provisions applicable to partnerships. In addition, AS
43.20.160 and AS 43.20.300 require the Department of Revenue
(DOR) to apply, as far as practicable, the administrative and
judicial interpretations of the federal income tax law.

Attribution Rule

Under Alaska Regulation 15 AAC 20.320, the tax attributes of a
partnership, including apportionment factors, are attributed to
the partners on the basis of their respective ownership interests,
as modified by the partnership agreement. This means that the
partner itself is treated as if it had directly conducted the activities
in the state. Income is not apportioned at the partnership level.

Limited Liability Company (LLC)

An LLC doing business in the state must file an Alaska return
consistent with its federal tax status. If the LLC is characterized as
a partnership for federal income tax purposes, the LLC must file
Form 6900. If the LLC is characterized as a corporation for federal
income tax purposes, the LLC does not file Form 6900, but must
file Form 6000, 6100, or 6150 (corporation net income tax return).

0405-6900i Rev 01/20/2023 - page 1

Purpose of Form

Publicly Traded Partnerships

Who Must File

If a PTP meets the exception under IRC Section 7704(c), it is
treated as a partnership for federal and Alaska purposes and is
required to file Form 6900. Both the Tax Division’s online portal,
Revenue Online, and the Internal Revenue Service’s MeF Program
are capable of accepting Form 6900 for a PTP with a high volume
of partners.

Form 6900 is an information return reporting certain partnership
information, and includes Form 6900, Schedule K-1 to report
information to partners classified as corporations or partnerships
for federal tax purposes. Form 6900, along with Schedule
K-1, reports apportionment factor information, certain income
modifications, and activities that may generate tax credits for the
partners.
A partnership or an LLC treated as a partnership for tax purposes
(hereafter “partnership”), which conducts business in the state
(also known as having “nexus” with the state) is required to file
Form 6900. If all of the partners or LLC members (hereafter
“partners”) are natural persons or are effectively treated as natural
persons, the partnership is not required to file Form 6900. The
partnership must file Form 6900 if any partner is a corporation or
another partnership.
A natural person is a real human being, as opposed to a legal
person. Natural persons file individual income tax returns for U.S.
tax purposes. Alaska treats partners that are not corporations
or partnerships for federal tax purposes as natural persons
(“effectively treated as natural persons”.) Partners effectively
treated as natural persons are entities, including trusts, which
report their items of income, deductions, and credits directly on
a federal individual income tax return, as well as tax-exempt
organizations not required to file an Alaska return.
A partnership is required to file Form 6900, even if the partnership
itself does not conduct business in the state, but owns a partnership
interest in a lower-tier partnership doing business in the state,
because of the attribution rule.

Nexus

Nexus is sometimes referred to as “doing business” within the
state. It is the act of conducting business activity within the state
during the tax year. It may exist as a result of an entity’s direct
activity, the activity of its employees or agents, or through its
interest in a lower-tier partnership or LLC. A partnership registered
outside of Alaska can still have nexus in Alaska. Nexus-creating
activities may include, but are not limited to:
1)

owning or using property
leased or mobile property;

in

the

state,

including

2)

presence of employees in the state for business purposes;

3)

making sales into the state; or

4)

the generation of income from sources within the state without
regard to whether there is a physical presence in the state.

How Income is Shared Among Partners

Allocate income and expense items subject to Alaska modification,
apportionment data, and Alaska credit-related items among the
partners according to the partnership agreement for sharing
income or loss generally. The partnership agreement may contain
provisions allocating specific items in a ratio different from the
ratio for sharing income or loss (IRC §704 provisions). Use the
checkbox on Schedule B, Column E, to identify partners with
specific allocations. On Schedule K-1, report the amount actually
allocated to partners.

Generally, a Publicly Traded Partnership (PTP) is taxed as a
corporation, under Internal Revenue Code (IRC) Section 7704, for
federal and Alaska purposes. A PTP must file Form 6000, 6100 or
6150 (Alaska corporation net income tax return). A PTP does not
file Form 6900.

When to File

The Alaska partnership return must be filed within 30 days of the
date on which the partnership’s federal return is required to be
filed. Thus, the due date is not necessarily the 15th day of the
month following the federal due date.

Extension of Time to File

A federal extension automatically extends the Alaska filing due
date to 30 days after the federal extended due date. This is also
true if the Internal Revenue Service (IRS) extends a due date
because of an event such as a natural disaster situation. Be sure
to check the appropriate box on page 1, under Return Information,
and attach a copy of the federal extension to the Form 6900.

Who Must Sign

A general partner or LLC member manager must sign the return.

Where to Send Return

Mail the return with attachments to:
TAX DIVISION
ALASKA DEPARTMENT OF REVENUE
PO BOX 110420
JUNEAU AK 99811-0420
Note: filing a paper return may result in assessment of penalties
for failure to file electronically. See electronic filing requirement
above.

Other Related Forms

A corporation, or an LLC that is treated as a corporation for tax
purposes (hereafter “corporation”), must file a Form 6000, 6100
or 6150 (corporation net income tax return), if the corporation is a
partner in a partnership doing business in the state.

Amended Returns

An amended return must be filed as a complete return. All
versions of Form 6900 have a checkbox on page 1, under Return
Information, to indicate “amended return.” If the federal return was
also amended, a complete copy must be attached. An amended
Alaska return is required if the federal return is amended, or
adjusted by the IRS.

Internal Revenue Service (IRS) Audit

A partnership is required to file an amended Alaska partnership
return to report any amendment of the taxpayer’s federal
partnership return, or any adjustment made by the IRS. The
Alaska amended return must be filed within 60 days after the final
determination of the federal adjustment to avoid assessment of a
penalty for failure to file. If the date that the adjustment is finalized
0405-6900i Rev 01/20/2023 - page 2

is later than the date on the federal Revenue Agent’s Report, the
reason must be satisfactorily explained to avoid assessment of a
penalty for failure to file.
Note: The partnership’s obligation to report any IRS audit
adjustment is not affected by the expiration of the statute of
limitations period for the partnership’s original Alaska partnership
return.

Penalties

A partnership that does not file a complete partnership return by
the due date, including extension, is subject to a penalty for failure
to file a partnership return, under Alaska’s adoption of IRC Section
6698. The penalty imposed is calculated by multiplying $195 by
the number of required Schedules K-1 (excluding any partner that
is a natural person or is effectively treated as a natural person).
The penalty applies for each month (or fraction thereof) during
which such failure continues, for a maximum of 12 months.
Additional penalties may apply if the partnership does not furnish
the Form 6900, Schedule K-1 to a partner.

Paid Preparer Authorization

If the partnership wants to allow the DOR to discuss its tax return
with the paid preparer who signed it, check the applicable box in
the signature area of the return. This authorization applies only to
the preparer whose signature appears at the bottom of the return.
It does not apply to the firm.
If the applicable box is checked, the partnership is authorizing
DOR to contact the paid preparer to answer any questions that
arise during the processing of the return. The partnership is also
authorizing the paid preparer to:
1) Contact the DOR for information about the processing of
the return or the status of any related refund or payment, and
2) Respond to certain DOR notices about math errors, offsets,
and return preparation.
The partnership is not authorizing the paid preparer to receive
any refund check, bind the partnership to anything (including any
additional tax liability), or otherwise represent the partnership before
the DOR. If the partnership wants to revoke the authorization, the
partnership must file a Form 774, Power of Attorney

If You Need Help

If you have questions, need additional information or require other
assistance, see our web site at www.tax.alaska.gov, or call:
Juneau: 907.465.2320
Anchorage: 907.269.6620

Required Attachments

SPECIFIC INSTRUCTIONS
Partnership Identification

Enter the legal name and federal Employer Identification Number
(EIN) of the partnership.

Contact Person

Provide the name, email address, and telephone number of an
individual to whom correspondence regarding this return should be
directed. This must be a general partner, LLC member manager,
or employee authorized to receive confidential tax information.
Generally, we cannot discuss tax matters with an outside
party unless we have a Power of Attorney (see Paid Preparer
Authorization above).

Return Information

Check all boxes that apply.
□ Final Alaska return: Check this box if you do not expect to
have nexus in Alaska after this tax year. Also check this box on
Schedule K-1.
□ Amended return: Check this box if this return is an amended
return. You must file a complete return to amend. Be sure to
attach a statement explaining the changes being reported.
(See instructions for related checkbox below.) Also check this
box on Schedule K-1.
□ A federal extension automatically extends the Alaska filing due
date. If a federal extension is in effect for the taxpayer, check
“yes” here and attach a copy of Form 7004 to the return.
□ Oil and gas tax partnership: for co-owners operating through
joint operating agreements and filing a federal partnership
return. If this box is checked, Other Information, line 2 must
also be checked.
□ Partnership agreement contains Section 704 provisions: Check
this box if a special allocation is made to any partner under
I.R.C. §704.
□ Public Law 86-272 applies (P.L. 86-272): Check this box if the
partnership is claiming protection under P.L. 86-272.
□ If this is an amended return filed to report audit changes by
the Internal Revenue Service, check the appropriate additional
box. You must attach a complete copy of the federal audit
report “RAR” showing federal changes by company.

Other Information

Question 1: The purpose of this series of questions is to identify a
partnership that is required to file a return in Alaska. A partnership
is not required to file, if any of the following three situations apply:

A copy of the signed federal Form 1065, pages 1-5 must be
attached to Form 6900 to constitute a complete filing.

1)

If the partnership is reporting any activities that may generate a
potential credit (to be claimed by a partner), then the appropriate
form for that credit must be attached. These forms are available on
our web site at www.tax.alaska.gov.

2) The partnership is a “publicly traded partnership” that does not
meet the exception under IRC Section 7704(c); or
3)

All of the partners are natural persons or are effectively
treatedas natural persons; or

The partnership
a) Does not conduct business in Alaska, and
b) Has no property in Alaska, and
c) Does not own an interest in a lower-tier partnership that
is required to file Form 6900.
0405-6900i Rev 01/20/2023 - page 3

Nested Partnerships: Question 1c: If you answered yes to
question 1c on page 1 of the Form 6900, then answer questions
2-5 to include activities attributed to the partnership from lowertier partnerships. A lower-tiered partnership is required to file Form
6900 if it has nexus in Alaska and any partner is a corporation
or another partnership, even if the partners of the higher-level
partnership are all natural persons or those effectively treated as
natural persons.
Attach Form 6900, Schedule K-1 from any lower-tiered partnership
in which the partnership for which this return is being filed has an
interest.
Question 1d: If all partners are natural persons or are effectively
treated as natural persons, answer question 1d “no.” The
partnership does not need to file Form 6900. If one or more
partners is a natural person or is effectively treated as a natural
person, and one or more additional partners is a corporation or
partnership, answer “yes” to question 1d. A Form 6900, Schedule
K-1 is not required for partners that are natural persons or are
effectively treated as natural persons.
Question 2: If the partnership engages in the production or
transportation of oil or gas in Alaska, then any corporation that is
a partner (directly, or through a high-tier partnership), is subject to
AS 43.20.144, the rules applicable to oil and gas producers and
pipelines. For the partnership, this affects the information required
on Schedule A.
Question 3: Indicate whether the partnership has an ownership
interest in any foreign corporation. Attach a schedule showing
the name, EIN, country of incorporation, and the ownership
percentage held of each foreign corporation. If the partnership
has an ownership interest in a foreign corporation, the ownership
is attributed to any corporate partner, and may affect the Alaska
corporate income tax reporting of that partner.
Question 4: If you answered yes to question 3 on page 1 of the
Form 6900, then indicate whether any of the foreign corporations,
in which an ownership interest was held, are a “tax haven
corporation” as defined in 15 AAC 20.900(b)(4). If the partnership
has an interest in a “tax haven corporation,” the ownership is
attributed to any corporate partner, and may affect the Alaska
corporate income tax reporting of that partner, if the partner is
subject to water’s edge combined reporting under AS 43.20.145.
Question 5: Indicate whether the partnership has an ownership
interest in any foreign partnership. Attach a schedule showing the
name, EIN, and the ownership percentage held of each foreign
partnership. If the foreign partnership has an ownership interest
in a foreign corporation, the ownership is attributed to the uppertier partnership, including all tax attributes such as apportionment
factor. This affects the reporting of apportionment factor information
on Schedule A. See instructions for Schedule A below.

Schedule A

Schedule A is used to report relevant income modifications,
apportionment data, and potential credits, and to attribute those
items to partners, other than natural persons or those effectively
treated as natural persons. It is similar in concept to the federal
Form 1065, Schedule K.

General Instructions for Schedule A: Enter in Schedule A,
column A the relevant information for the entire partnership. Enter
in Schedule A, column B the amount from Schedule B, line 2
(see instructions for Schedule B). This is the total percentage of
ownership held by partners, other than natural persons or those
effectively treated as natural persons. Enter in Schedule A, column
C the distributable portion of the items in column A (multiply
column A by the percentage in column B). This is the portion of
items attributable to partners, other than natural persons or those
effectively treated as natural persons. The amount of items in
Schedule A, column C will be reported on Form 6900, Schedules
K-1 for the partners, other than natural persons or those effectively
treated as natural persons.

Nested Partnerships

If you answered yes to question 1c on page 1 of Form 6900,
then the amounts in Schedule A, column A must include amounts
attributed to the partnership from lower-tier partnerships.

Special Allocations

If a special allocation box is checked on Schedule B, line 1,
column E for any partner, leave the percentage blank on all lines of
Schedule A, column B. Instead, check the “various” box in columnB.
In Schedule A, column C, enter the total amount distributable to
partners, other than natural persons or those effectively treated as
natural persons.
Income/Expense Items Subject to Alaska Modification: A corporate
partner must report certain income modifications for purposes
of Alaska corporate income tax, under AS 43.20.031(c) or AS
43.20.144(b). Under 15 AAC 20.320, income and expenses of
the partnership are attributed to the partner, as if the partner had
directly engaged in those activities itself.
Certain potential modification items are not required to be reported
on Form 6900. Generally, this is true where an item is separately
stated on federal Form 1065, Schedule K, such as dividends,
charitable contributions, capital gains, and IRC §965 inclusion
amounts, deductions, and credits, because those items retain their
character and are separately reported on the corporate partner’s
federal Form 1120.
Note: If a partner is subject to AS 43.20.144 (oil and gas
producers and pipelines), then the partner will be required to report
modifications to depreciation, depletion, and intangible drilling
costs under AS 43.20.144(b). This would include modification of
the corporate partner’s share of costs incurred by the partnership.
Since such costs are subject to certain elections by the corporate
partner, the partnership is not required to report those items on
Form 6900. In these circumstances, the corporate partner should
contact the partnership to gather the relevant information.
Apportionment Data: This information will be used to calculate
a corporate partner’s apportionment factor. In addition to general
regulations cited below, special industry rules may apply. See
Alaska Administrative Code (AAC) Title 15, Chapter 19 for further
information.
Line 3: If the qualified oil and gas service industry expenditure
credit is being allocated to partners, then Form 6327 must be
completed and attached to the partnership return. Enter on line
3 the amount from Form 6327, line 2. See instructions for line 14.

0405-6900i Rev 01/20/2023 - page 4

Lines 5a–5b: Report the average value of owned property in Alaska
(line 5a) and everywhere (line 5b). Owned property is valued at
its original cost, which is the unadjusted basis for federal income
tax purposes at the time of acquisition adjusted by subsequent
additions, improvements, or partial dispositions. Owned property
does not include construction in progress. Owned property does
not include intangible personal property. See 15 AAC 19.141-181
for further details.
Rented property is valued at eight times the annual rents paid. See
15 AAC 19.191 for further details.
Lines 6a–6b: Report gross receipts derived during the tax year
from transactions and activities attributable to Alaska (line 6a) and
everywhere (line 6b) in the regular course of the partnership’s
regular trade or business. See 15 AAC 19.251-302 for further
details.
Lines 7a–7b: Report compensation paid in Alaska (line 7a) and
everywhere (line 7b). Do not complete lines 7a-7b, if you answered
yes to question 2 on page 1 of Form 6900.
The term “compensation” means wages, salaries, commissions
and any other form of remuneration paid directly to employees for
personal services. Payments made to an independent contractor,
or to any person not properly classified as an employee, are
excluded. See 15 AAC 19.211-241 for further details.
Lines 8a–8b: Report tariffs paid in Alaska (line 8a) and everywhere
(line 8b). “Tariffs” are amounts received by the partnership for
transporting oil or gas by pipeline, regardless of whether the
tariffs are paid by third parties or by a related party. See 15 AAC
20.500(a) for further details.
Lines 9a-9b: Report cumulative intangible drilling costs incurred in
Alaska (line 9a) and everywhere (line 9b). See 15 AAC 20.500(b)
for further details.
Lines 10a-10b: Report the number of barrels of oil or natural gas
liquids (NGLs), net of royalty to an unrelated party, produced in
Alaska (line 10a) and everywhere (line 10b). See 15 AAC 500(c)
for further details.
Lines 11a-11b: Report one-sixth of the number of Mcf of gas, net
of royalty to an unrelated party, produced from properties in Alaska
(line 11a) and everywhere (line 11b). See 15 AAC 20.500(c) for
more details.
Alaska Credit-Related Items: Form 6900 is used to report the
allocation of certain Alaska incentive credits, and recapture of
credit for cessation of operations under AS 43.20.046(h) and AS
43.20.047(h). The film production tax credit is not reported on
Form 6900 because the taxpayer (corporation) must produce a
credit certificate issued by the DOR directly to, and in the name of,
the corporation claiming the credit.
Line 12: Report the alternative tax credit for oil and gas exploration
under AS 43.55.025 if the credit is for exploration expenditures
against the corporate income tax.
Line 14: If the qualified oil and gas service industry expenditure
credit is being allocated to partners, according to the partnership
agreement, then Form 6327 must be completed and attached to

the partnership return. Enter on line 14 the amount from Form
6327, line 3. The credit will then flow through to the applicable
Schedule K-1. The partnership must attach a copy of the Form
6327 to the Form 6900 Schedule K-1 provided to the partner.
Line 15: You must complete and attach Form 665 to the partnership
return. Enter on line 15 the amount from Form 665, line 1.
Line 16: You must complete and attach Form 6325 to the
partnership return. Enter on line 16 the amount from Form 6325,
line 5.
Line 18: You must complete and attach Form 6310 to the
partnership return. Enter on line 18 the sum of Form 6310, line 2,
Columns D
Line 20: Enter the amount of credit you are claiming under AS
43.20.052. In order to claim the credit, you are required to attach
a statement to the return providing the information described in AS
43.20.052(c).
Line 21: If the LNG storage facility credit or the gas storage facility
credit was originally allocated to partners, then the increase to
tax for cessation of operations recapture must be reported. For
recapture of the Alaska LNG Storage Facility Credit, Form 6323
must be completed and attached to the partnership return. Enter
on line 21 the amount from Form 6323, line 4. See instructions
for Form 6323 and 6324 for further information. If the gas storage
facility tax credit was originally allocated to partners, then the
increase to tax for cessation of operations recapture must be
reported on line 20. If the gas storage facility tax credit was
originally claimed by the partnership, then a claim for refund must
be made on Form 6322. See instructions for Form 6322 for further
information.

Schedule B

All partners must be fully accounted for on Schedule B. If additional
lines are necessary, attach additional Schedules B, completing
lines 2 and 4 only on the first Schedule B.
Line 1: List the legal name of all partners, other than natural
persons or those effectively treated as natural persons, in column
A. Enter in column B the percentage ownership held by each
partner. This should agree to the partner’s proportionate share
of income and loss, according to the partnership agreement, and
used for federal income tax purposes.
Enter in column D the appropriate entity code from the following: 	
	
C corporation
	
P partnership, or LLC treated as a partnership for 		
	
federal tax purposes
Indicate in column E if a special allocation is made to the partner
under Internal Revenue Code Section 704. If any box in column E
is checked, see the Schedule A instructions for Special Allocations.
Line 3: List the names of all partners that are natural persons
or effectively treated as natural persons, in column A. Enter in
column B the percentage ownership held by each partner. Indicate
in column C if a special allocation is made to the partner under
Internal Revenue Code Section 704.
The sum of lines 2 and 4 must equal 100%, unless “various” or
“special allocation” is checked.

0405-6900i Rev 01/20/2023 - page 5

Form 6900, Schedule K-1

A partnership is required to prepare and give a Form 6900,
Schedule K-1 to each partner that is not a natural person or is not
effectively treated as a natural person. A Form 6900, Schedule K-1
should not be attached for partners who are natural persons or are
effectively treated as natural persons.
Complete a Schedule K-1 for each partner that is not a natural
person or effectively treated as a natural person, to report that
partner’s distributive share of amounts reported on Schedule A.

Check all boxes that apply.

See How Income is Shared Among Partners, on page 2, for more
information.

0405-6900i Rev 01/20/2023 - page 6