Split Tax Partnership Accounts

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Purpose:
To report taxable income to the IRS based on each partner's percentage of ownership of an account, and issue corresponding individual 1099's to each partner.

How It is Done:
Each partner must complete a special W9 form certifying their SSN or TIN, and certifying their percentage of ownership of a specific account. HGCA will record this information in the account records and report to the IRS accordingly.

Requirements:

1. HGCA must receive a signed W9-Partner form (link below) from every partner in the account.
2. The total percentage of ownership of the W9-Partner forms submitted for an account must be 100%.
3. Each W9-Partner form submitted is for a single account only.
4. Forms from all partners must be received by 12/31 of the tax year to be effective for that tax year.

Setting up a Split Partnership Account ONLY affects taxable income reporting. IT WILL NOT AUTOMATICALLY SPLIT EXPENSES OR PURSE EARNINGS INTO SEPARATE ACCOUNTS.

Cost:

1. There is a one-time fee of $25 to cover the initial cost of setting up the partner percentages. This fee is deducted from the partnership account when the partnership split is set up.
2. There is an annual fee of $5 per partner to cover the cost of generating and reporting multiple 1099 forms. These fees will be deducted directly from the partnership account.