New Partnership Audit and Tax Collection Rules – is Your Partnership/LLC Agreement Ready?

April 9, 2018

The new partnership audit and collection rules are now effective for the 2018 income tax returns and certain prior returns if the partnership so elects. An IRS auditor can make adjustments to collect tax from the partnership on hypothetical tax calculations at the highest rates reflecting the audit adjustments. A new Partnership Representative position is mandated with such person being the sole interface with the IRS. No partner even gets notice from the IRS of an impending audit nor does a partner get to challenge the results of the audit, even on the adjustments that may impact such partner’s own return. Does the partnership agreement provide the Partnership Representative with the ability to obtain information from partners to reduce the partnership tax? Does the agreement provide those partners whose information reduces the tax to specifically benefit from such reduction? Existing and new partnership or LLC agreements need to address the new reality. This program will provide the participant with a background of the new law, an overview of the new law, and some specific partnership agreement things to consider and possible drafting approaches.

Panelists:

• Roger Royse (moderator), Royse Law Firm, Menlo Park, CA
• J. Leigh Griffith, Waller Lansden Dortch & Davis, LLP, Nashville, TN
• Robert E. Box, Jr., Jones Walker LLP, Jackson, MS

Presented by: Taxation Committee

Members of the Business Law Section may access the audio, program materials, and video from this program. Log in using your email address. CLE credit is only available to those attending the live programs.