Report your law firm partnership in Part 2.  In addition, report what will happen to your interest in Part 3 (see Part 3 of this guide for details).

For You

Part 2

Report a law firm partnership interest if its value was more than $1,000 at the end of the reporting period or if you received more than $200 in income during the reporting period.

If You Received a Partnership Share

Description:  Provide the name of the law firm.  You should also indicate that the entity is a law firm, unless you have already provided this information in another entry.

EIF:  Select “N/A.”

Income Type:  Describe the type of income as “partnership share.”

Income Amount:  Provide the exact amount your partnership share, including draw and any distributions, received during the reporting period.

If You Anticipate Payment of an Outstanding Partnership Share

Description:  Provide the name of the law firm and write “anticipated partnership share” or “partnership share receivable.”  You should also indicate that the entity is a law firm, unless you have already provided this information in another entry.

EIF:  Select “N/A.”

Value:  Select the category that corresponds to the value of the anticipated payment, including draw, distributions, and any other related components of your compensation.

Income Amount:  Select the “None (or less than $201)” category for income.

Capital Account

Description:  Provide the name of the law firm and write “capital account.”  You should also indicate that the entity is a law firm, unless you have already provided this information in another entry.

EIF:  Select “N/A.”

Value:  Select the category that corresponds to the value of the capital account.

Income Type:  Specify the type(s) of income if the total amount of income during the reporting period exceeded $200.  The type of income is usually “interest” for capital accounts.

Income Amount:  Select the category that corresponds to the total amount of income received during the reporting period.

Other Interests

Business Assets and Liabilities: You need not itemize the assets of the law firm in Part 2.  Disclosing the law firm itself is normally sufficient.  As an exception to this rule, you would report any assets that are unrelated to the operations of the law firm.  Report any liabilities for which you are personally liable in Part 8.

Compensation and Other Benefits:  In addition to partnership income, report any additional compensation and other benefits.  Report these as separate line entries using the instructions for that type of asset or income.  For example, various sections of this guide address severance payments, bonuses, deferred compensation, defined benefit plans, defined contribution plans, and other items.

Contingency Fee Interests:  If you have any interests in contingency fee cases, report these interests in Part 2 and Part 3 using the instructions provided in this guide.

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