McGuire Woods has published a new article on its website addressing the need to update partnership agreements to reflect new rules re partnership representatives for IRS Audits. The article begins as follows:
Last week, the U.S. Department of the Treasury and the Internal Revenue Service issued final regulations concerning the designation and authority of a partnership representative under the centralized partnership audit regime that went into effect for tax years beginning after Dec. 31, 2017. Partnerships should review their partnership agreements to determine what changes are necessary to comply with the final regulations.
The Treasury Department and the IRS issued the regulations after receiving more than 30 written comments and additional comments during a public hearing on the previously released proposed regulations. The proposed regulations addressed (i) the eligibility of a person who could serve as the partnership representative, (ii) designating and changing a partnership representative, and (iii) the binding effect and the authority of a partnership representative. The Treasury Department and the IRS, in a few key areas, modified the proposed regulations under Internal Revenue Code Section 6223 in an effort to clarify and/or address concerns raised by the commentators.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.