Basically, the Partnership sends Form 8986 to the individual, and the individual needs to "proforma amend" the year affected and report the increase or decrease in tax liability on Form 8978.

One must also attach statements to account for the changes - why not the full hundreds of pages of amended? Serves them right.

If there is no change in federal taxable income but changes in carryovers to the next year, one must then "proforma amend" that year to see if there are changes in tax liability.

If not, one might need to keep carrying it forward. Also, one must compute interest if there is a tax liability.

"Proforma amend" means that one is not really amending the tax return, so what happens to the state?