For 2020, tax basis capital accounts must be reported for partnership returns. Notice 2020-43 mentions a Modified Outside Basis Method. The capital account is reported in Item L of the K1s and should match the 1065 M-2. This Modified Method is basically a partner's outside basis less share of liabilities. Does anyone notice a reconciliation problem?
If the 1065 balance sheet is reported on the tax basis, Partner Capital Accounts should equal inside basis, but M-2 would equal outside basis.