Notice 2020-43, page 1.

Partnerships and certain other persons report partner capital accounts in Box L on the Schedule K-1 (Form 1065) or in Box F on the Schedule K-1 (Form 8865), each as they currently appear on the 2019 forms (Tax Capital Reporting Requirement). For purposes of satisfying the Tax Capital Reporting Requirement with respect to partnership taxable years that end on or after December 31, 2020, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) propose to require the use of one of two alternative methods

described in this notice. As a result, partnerships and certain other persons would no longer be permitted to report partner capital accounts using any other method, including section 704(b) of the Code (§ 704(b)) and generally accepted accounting principles (GAAP). This notice requests comments concerning the Tax Capital Reporting Requirement. Comments received in response to this notice will help inform the development of the instructions to be included in Form 1065, U.S. Return of Partnership Income (to which the instructions for Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, refer), and Partner’s Instructions for Schedule K-1 (Form 1065), for 2020.