The New Partnership Tax Audit Rules: Are You Prepared for Change in 2018?

Article Excerpt:

A major shift has occurred in how the IRS will handle partnership tax examinations in the future. The IRS has created new centralized procedures for the audit, assessment, and collection of tax. Partnerships may now be assessed tax at the partnership level for IRS tax examinations as opposed to the tax assessment taking place at the individual partner’s level. The rules apply to all partnerships and will go into effect in 2018. This legislation was enacted under the Bipartisan Budget Act of 2015 and will repeal the longstanding partnership audit rules of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA).