Archive - January 2017
Proposed Partnership Audit Regulations are Out January 19, 2017
In a 270 page blockbuster release, the IRS laid down the law on the new partnership audit tax regime in proposed reg project REG-136118-15. As a background, Congress repealed TEFRA and replaced it with the Bipartisan Budget Act of 2015 (BBA). The BBA was enacted in a rush and was later followed by the Tax Technical Corrections Act of 2016 (H.R. 6439, S. 3506) which never passed. The main highlight of the new rules is that partnerships could end up liable for the assessed tax as compared to the TEFRA rules where the tax liability passed to the individual partners. One of the key...