A New Law Changes the Way the IRS Will Handle Partnership Audits
Author: Jeffrey J. Bryant.
Source: Volume 33, Number 03, Spring 2016 , pp.45-64(20)
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Abstract:
Recent legislation significantly transforms the approach that the IRS will use to audit partnerships. More partnerships are able to elect out of entity-level examinations than under TEFRA. However, large partnerships will be subject to a unified partnership level audit process with virtually no partner participation. The new rules provide for payment of deficiencies by either the partners or the partnership. This article analyzes the alternatives and describes the implications of selecting various available options.Keywords: Bipartisan Budget Act of 2015, audit adjustments, partners, partnership, tax deficiencies, unified audit system, TEFRA
Affiliations:
1: Wichita State University.