6 of 20. Schedule L: Is the balance sheet as required by the IRS if the partnership answers Yes to Schedule B, line 4. Is the reporting of how the partnership's assets equal the company's liabilities plus the partners' basis. Is the reporting of the financial position of the partnership at year end as recorded on the books and records of the partnership. Reconciles the partnership's books and records for the year to the tax return as reported to the IRS