The BBA Partnership Audit Rules
* Effective January 1, 2018 *
Are you ready?
The “Bipartisan Budget Act of 2015″ (the “BBA”) made sweeping changes to the rules governing IRS audits of partnerships and LLC’s filing as partnerships, changes that are finally scheduled to take effect January 1, 2018. With the regulatory freeze on these rules now lifted, the IRS recently reissued proposed regulations, giving us much needed guidance in implementing the new rules. While these rules were enacted to streamline the IRS’s partnership audit and collection process, the new rules will require that most existing partnerships consider electing out of the new rules or revising their partnership agreements to address the BBA.
WHAT YOU LEARNED
- Which partnerships will be affected by the BBA rules
- Specific changes in the law
- How to elect out of the new changes, if qualified to do so
- New BBA provisions that should be considered when drafting partnership agreements such as the appointment of a “Partnership Representative”, which replaces the Tax Matters Partner and the “push-out” election in the event of an audit
- Exposure risks for not considering or implementing these changes
Wouch, Maloney & Co., LLP offered an informative presentation on September 27, 2017 to help you understand the new rules and answer your questions about the BBA Partnership Audit Rules.