1. Introduction: What is Form 14726?

IRS Form 14726, officially titled Waiver of the Notice of Final Partnership Adjustment (FPA), is an administrative closing form published by the Internal Revenue Service (IRS). It is governed by the centralized partnership audit regime created under the Bipartisan Budget Act of 2015 (BBA), administered by the IRS Large Business & International (LB&I) and Small Business/Self-Employed (SB/SE) Divisions.

This form is used by an audited partnership’s designated Partnership Representative (PR) when the partnership agrees with the IRS’s audit findings and wants to settle the case. By executing Form 14726, the partnership formally waives its statutory right to receive a Notice of Final Partnership Adjustment, forfeits the right to challenge the adjustments in court, and allows the IRS to immediately assess and collect the agreed-upon tax liability at the partnership level.

2. Purpose of the Form: Why Does Form 14726 Exist?

Under the BBA centralized audit regime, the IRS audits partnerships and assesses tax adjustments directly at the entity level rather than auditing each partner individually. At the conclusion of an audit, the IRS is normally required by law (Internal Revenue Code Section 6231) to send a formal Notice of Final Partnership Adjustment (FPA) by certified mail to both the partnership and its Partnership Representative. The mailing of this notice triggers a mandatory 90-day waiting period during which the IRS cannot assess taxes while the partnership decides whether to petition the U.S. Tax Court.

When the partnership and the IRS have already negotiated and agreed upon all audit adjustments, waiting for the certified FPA and enduring the 90-day statutory delay is an unnecessary administrative hurdle. Form 14726 exists to solve this problem by streamlining case closure:

Accelerating Final Settlement: It waives the requirement for the IRS to issue a formal FPA, allowing the IRS to immediately assess the agreed-upon imputed underpayment (IU) and close the examination.
Eliminating the 90-Day Court Window: By signing the waiver under Section 6232(d)(2), the partnership agrees not to petition the Tax Court, bringing immediate legal finality to the audit.
Locking in Entity-Level Payment: Executing Form 14726 confirms that the partnership will pay the tax liability directly at the entity level, waiving the option to “push out” the audit adjustments to individual partners.

3. Who Needs to File This Form?

Form 14726 is not an annual return and is never filed with routine business tax filings. It is used exclusively by partnerships undergoing an IRS audit under the BBA rules. Specifically, it applies when:

A partnership subject to the BBA audit regime has completed an examination or administrative appeal and reached a full, agreed settlement with the IRS.
The partnership agrees with the proposed adjustments to partnership-related items, the calculation of the imputed underpayment, and any related penalties or interest.
The designated Partnership Representative (PR)—or the Designated Individual (DI) if the PR is an entity—elects to close the case expeditiously without waiting for an FPA.
The partnership agrees to pay the imputed underpayment at the partnership level and chooses not to make a Section 6226 “push-out” election.

4. Who Is Exempt / Not Required to File?

Many partnerships and taxpayers will never encounter Form 14726. You are exempt or not eligible to use this form in the following situations:

Partnerships That Opted Out of the BBA Regime: Small partnerships (those with 100 or fewer qualifying partners) that made a valid election out of the BBA rules under Section 6221(b) on their Form 1065 are audited under traditional deficiency rules and do not use Form 14726.
Partnerships Disputing Audit Findings: If the partnership disagrees with the IRS’s adjustments and plans to challenge the case in the U.S. Tax Court or a federal district court, it must not sign Form 14726. The partnership must wait to receive the official FPA to preserve its court petition rights.
Partnerships Electing the “Push-Out” Option: If the partnership intends to elect the Section 6226 alternative to payment (pushing the tax adjustments out to the reviewed-year partners on Form 8986), it cannot sign Form 14726. Signing Form 14726 explicitly revokes the right to push out adjustments.
General Individual Taxpayers and Non-Audited Partnerships: Compliant partnerships, corporate entities, and individual partners have no reason to use this form.

5. When to File: Deadlines and Frequency

Form 14726 is an event-based form executed once at the conclusion of an agreed partnership examination. It has no recurring calendar deadline.

Timing is critical: Form 14726 must be signed and delivered to the IRS before the IRS officially mails the Notice of Final Partnership Adjustment (Letter 5933 / Letter 5933-A). Once the IRS issues the FPA via certified mail, the statutory 90-day judicial clock begins, and the opportunity to execute a pre-issuance waiver under Form 14726 is lost. The waiver becomes legally binding only when countersigned by an authorized IRS official.

6. Where and How to File

Because Form 14726 is an integral part of an active federal tax examination, it requires specialized delivery directly to the examination team handling the audit:

Electronic Submission: Audited BBA partnerships are generally required to submit BBA audit forms electronically using the secure IRS BBA Online Forms Submission Service portal.
Direct Delivery to the Revenue Agent: If electronic submission through the portal is unavailable, the signed form may be transmitted via secure encrypted email, secure fax, or mailed directly to the revenue agent handling the audit at the designated IRS address as per instructions provided in your audit closing correspondence.
Countersignature Verification: Always obtain and retain a copy of Form 14726 that has been countersigned and dated by the IRS official, as the waiver is conditional until executed by the IRS.

7. Step-by-Step Instructions to Fill Form 14726

Form 14726 is a concise, single-page legal agreement. Although brief, every entry carries binding legal significance. The table below outlines each primary section of the form.

Section	Field / Item	Required Information
Header	Partnership Details	Legal name of the partnership, Employer Identification Number (EIN), and taxable year(s) audited.
Waiver Text	Statutory Terms	Legal clauses waiving FPA issuance, waiving assessment limits, and forfeiting push-out rights.
PR Signature	Representative Execution	Signature, date, telephone number, printed name, and entity PR name (if applicable).
IRS Section	Official Acceptance	Signature, printed name, official title, and execution date of the authorized IRS official.

Part 1: Partnership Identification

Enter the complete legal name of the partnership exactly as reported on its Form 1065. Enter the partnership’s nine-digit Employer Identification Number (EIN). In the tax period line, list each partnership taxable year covered by the audit settlement (e.g., calendar years ended December 31, 2021, and December 31, 2022).

Part 2: Reviewing the Legal Waiver Terms

The core of Form 14726 consists of binding statutory commitments made under the BBA audit rules. Before signing, the Partnership Representative must carefully review what is being surrendered:

Waiver of Notice: Under Section 6232(d)(2), the partnership formally waives its statutory right to receive the certified Notice of Final Partnership Adjustment.
Waiver of Assessment Restrictions: Under Section 6232(b), the IRS is normally barred from assessing tax adjustments until 90 days after an FPA is mailed. Form 14726 waives this restriction, allowing immediate assessment.
Forfeiture of Court Rights: The partnership agrees not to contest the adjustments, the imputed underpayment, or any penalties in any court (including the U.S. Tax Court, Court of Federal Claims, or federal district court).
Forfeiture of the “Push-Out” Election: The form explicitly states that the partnership agrees it may not elect the Section 6226 alternative to payment. The partnership must pay the tax directly.

Part 3: Execution by the Partnership Representative

Under federal law, only the officially designated Partnership Representative has the legal authority to sign Form 14726. Individual partners, managing members, or general partners cannot sign unless they are also the designated PR:

If the PR is an individual, that individual must sign, date, and enter their contact telephone number and printed legal name.
If the PR is an entity (such as a corporate manager or accounting firm), the appointed Designated Individual (DI) must sign on behalf of the entity PR, listing both the individual’s name and the entity PR’s legal name.

Part 4: IRS Countersignature

Form 14726 contains an explicit condition: the waiver does not become final or legally effective until it is signed by an authorized IRS representative. Once the IRS official signs and dates the document, the case is officially closed as an agreed examination.

8. Required Documents and Information Needed Before Filling

Before executing Form 14726, the Partnership Representative and legal counsel should assemble and review the following audit documents:

The draft Revenue Agent Report (RAR), Form 14792, or Form 15027 showing the final agreed-upon partnership examination changes and imputed underpayment calculations.
Official documentation confirming the appointment of the current Partnership Representative (and Designated Individual, if applicable) for the audited tax years.
Form 2848 (Power of Attorney and Declaration of Representative) if legal counsel or a CPA is assisting the PR during audit closing.
Partnership financial statements confirming the partnership has adequate liquidity to pay the assessed imputed underpayment directly.

9. Common Mistakes to Avoid

Executing Form 14726 carries irreversible legal consequences. Avoid these frequent and costly mistakes:

Signing When You Want to “Push Out” Adjustments: The most critical error is signing Form 14726 without realizing it completely eliminates the partnership’s right to make a Section 6226 push-out election. If the partnership wants former or current partners to pay their share individually, do not sign this form.
Unauthorized Signatures: Having a general partner, managing member, or corporate officer sign the form when they are not the officially designated Partnership Representative renders the waiver invalid.
Signing While Disputing Penalties: Signing Form 14726 waives all judicial review. You cannot sign the waiver and later petition the Tax Court to dispute accuracy-related or negligence penalties.
Submitting After the FPA Is Mailed: If the IRS has already mailed Letter 5933 by certified mail, Form 14726 cannot be used. Case resolution must then proceed through post-FPA settlement procedures.
Failing to Obtain the Countersigned Copy: Because the waiver is conditional until the IRS executes it, failing to secure a copy signed by the IRS leaves the partnership’s closing status uncertain.

10. Penalties for Non-Filing or Errors

Form 14726 is an optional settlement waiver, so there are no direct fines for choosing not to sign it. However, the legal and financial ramifications of executing or mishandling the form are substantial:

Immediate and Uncontestable Tax Assessment: Once Form 14726 is signed and accepted, the IRS immediately assesses the full imputed underpayment, statutory penalties, and interest against the partnership. The assessment cannot be challenged in court.
Loss of Judicial Review: Signing the waiver extinguishes the partnership’s 90-day window to file a petition in the U.S. Tax Court, permanently barring any judicial dispute of the adjustments.
Loss of Partner-Level Allocation (No Push-Out): The partnership absorbs the entire financial burden at the entity level, which may inadvertently penalize new or incoming partners who were not partners during the audited year.
Consequences of Not Signing: If the partnership refuses to sign Form 14726, the IRS will issue the certified FPA. While this preserves the 90-day court petition window, it also triggers formal litigation deadlines and potential statutory collection actions if no petition is filed.

11. Related Forms or Schedules

Form 14726 operates within an interconnected suite of IRS BBA partnership examination forms:

Form 14792: Partnership Examination Changes, Imputed Underpayment Computation and Partnership Level Determinations.
Form 15027: Partnership Summary of Approved Modifications and the Imputed Underpayments.
Form 8980: Partnership Request for Modification of Imputed Underpayments Under IRC Section 6225(c).
Form 8986: Partner’s Share of Adjustment(s) to Partnership-Related Item(s) (used for push-out elections).
Form 8988: Election for Alternative to Payment of the Imputed Underpayment (Section 6226 push-out election).
Form 15057: Agreement to Rescind Notice of Final Partnership Adjustment.
Form 2848: Power of Attorney and Declaration of Representative.

12. Frequently Asked Questions (FAQs)

1. What is the difference between a NOPPA and an FPA in a BBA partnership audit?

A Notice of Proposed Partnership Adjustment (NOPPA) is issued during the audit to propose adjustments and initiate a 270-day window for requesting modifications. A Notice of Final Partnership Adjustment (FPA) is the final statutory determination letter issued at the end of the audit that opens the 90-day window to file a petition in court.

2. Can an individual partner sign Form 14726?

No. Under Internal Revenue Code Section 6223, only the designated Partnership Representative (or the Designated Individual acting for an entity PR) has the legal authority to sign Form 14726 on behalf of the partnership.

3. Can a partnership make a “push-out” election after signing Form 14726?

No. Form 14726 contains an explicit legal clause stating that by signing the waiver, the partnership and Partnership Representative agree that the partnership may not elect the Section 6226 alternative to payment (the push-out election). The partnership must pay the imputed underpayment directly.

4. Does signing Form 14726 prevent the IRS from auditing other tax years?

No. Form 14726 only resolves the specific partnership taxable years listed on the form. It does not prevent the IRS from auditing prior or subsequent partnership tax returns.

5. Can Form 14726 be revoked after it is submitted?

Once Form 14726 is accepted and countersigned by the IRS, it is legally binding and cannot be unilaterally revoked by the partnership or the Partnership Representative.

6. What happens if the IRS revenue agent does not countersign Form 14726?

By its explicit terms, Form 14726 is conditional and does not become effective until signed on behalf of the IRS Commissioner. If the IRS does not countersign the waiver, the IRS will proceed with issuing the formal Notice of Final Partnership Adjustment under Section 6231.

13. Conclusion: Key Takeaways

IRS Form 14726 is a powerful, binding administrative closing document for partnerships audited under the BBA centralized audit regime. By executing this waiver, the Partnership Representative bypasses the formal Notice of Final Partnership Adjustment, accelerates final case closure, and resolves the examination on agreed terms.

However, because signing Form 14726 permanently waives court petition rights and legally bars the partnership from pushing out tax liabilities to reviewed-year partners, Partnership Representatives should consult closely with experienced partnership tax counsel before signing and submitting the form.

IRS Form 14726 Guide: FPA Waiver for BBA Partnership Audits