I n November, 2015, Congress repealed TEFRA and enacted an entirely new statutory regime covering examination, litigation, and payment of taxes for partnerships and entities taxed as a partnership.

“Partnership Representative” will be the new designated liaison between partnerships/limited liability companies and the Internal Revenue Service. The partnership representative has broader authority to handle matters before the IRS, including managing and settling tax disputes, litigating in the U.S. Tax Court or U.S. district courts, payment of additional taxes owed, and filing refund claims.

F or those seeking information, this website will be a resource with articles, programs, and insights on how to address the new provisions of the Bipartisan Budget Act of 2015. In light of this legislation, partnerships and partners should now evaluate the current provisions of their partnership agreements and make fundamental changes to the tax procedure provisions. Doing so now will help to reduce and manage the partnership’s potential tax obligations and administrative costs and define the rights and responsibilities of partners, the partnership, and the partnership representative.

What We Do

What We Do

Model Partnership Audit Law for States Soon to be Finalized
Model Partnership Audit Law for States Soon to be Finalized

The Multistate Tax Commission (MTC), an organization that develops uniform tax laws for states, will soon provide formal feedback to a coalition of industry groups finalizing a model statute regarding partnership audits. Interested parties have…

Texas State Bar Comments on Proposed Partnership Audit Regime Regulations
Texas State Bar Comments on Proposed Partnership Audit Regime Regulations

The Texas State Bar Tax Section released a letter it sent on August 1, 2017 to the Treasury Department and the Internal Revenue Service.  The letter comments on the Proposed Regulations regarding implementation of the…

ABA Supports Delay of Partnership Audit Regime
ABA Supports Delay of Partnership Audit Regime

The Section of Taxation of the American Bar Association released a letter they sent on Thursday, July 20th to the House Committee on Ways and Means and the Senate Committee on Finance conveying its support…

Temporary Regulations for “Early Elect In”
Temporary Regulations for “Early Elect In”

The Treasury Department released a memo on June 29, 2017 from the LB&I (Large Business and International Division) and SB/SE (Small Business/Self-Employed Division) providing interim guidance for examiners on how to handle “early elect in” partnerships…

Law360 Speaks to Charles Ruchelman on New Liabilities for Partnership Reps
Law360 Speaks to Charles Ruchelman on New Liabilities for Partnership Reps

Forthcoming IRS regulations are expected to grant broad powers to those representing partnerships during audits, but these added capabilities could expose representatives to new risks, liabilities and potential misconduct claims from partners. Partnership agreements will…

Daily Tax Report Quotes Charles Ruchelman: IRS Revving Up Efforts to Find Partners Who Owe Tax
Daily Tax Report Quotes Charles Ruchelman: IRS Revving Up Efforts to Find Partners Who Owe Tax

The Internal Revenue Service is working to develop better ways to find the partners or other investors who owe tax—and represent the most risk—in immensely complex partnership structures. The agency said it will be focusing…

IRS Proposed Partnership Audit Rules Withdrawn from OFR
IRS Proposed Partnership Audit Rules Withdrawn from OFR

The IRS’ proposed partnership audit rules were withdrawn from The Office of the Federal Register following a government-wide executive order from President Donald Trump freezing all new and pending regulations, with some exceptions for health,…

IRS Publishes Proposed Partnership Audit Rules
IRS Publishes Proposed Partnership Audit Rules

On January 19, 2017, the IRS published proposed regulations regarding implementation of section 1101 of the Bipartisan Budget Act of 2015 (BBA)…

Fixes For Partnership Audit Regime Likely Pushed to 2017
Fixes For Partnership Audit Regime Likely Pushed to 2017

Technical corrections to the new regime for auditing partnerships aren’t likely to happen this year, as Congress is looking to wrap up 2016 quickly with a short-term spending bill and little else…

IRS Chief Skeptical of New Audit Regime for Partnerships
IRS Chief Skeptical of New Audit Regime for Partnerships

A law intended to make it simpler for the Internal Revenue Service to audit partnerships may turn out to be problematic for the agency to administer, the IRS chief said. Commissioner John Koskinen said it’s possible that taxpayers and the agency might be worse off under the new system because “nobody quite asked, ‘Hey, would this really work?’” before the legislation was passed…