Page 174 - The TEFRA Partnership Audit Rules Repeal:

ALI CLE Live Video Webcast / “The TEFRA Partnership Audit Rules Repeal: Partnership and Partner Impacts” June 7, 2016, Jerald David August and Terence Floyd Cuff
e. Limitations on Powers of the Partnership Representative.
The partnership audit rules give the partnership representative vast powers in connection with a partnership audit. The partnership may desire to restrict these powers. While the partnership representative still should be able to exercise statutory powers, an exercise might breach restrictions in the partnership agreement. These are possible restrictions that might appear in the partnership agreement:
 Engagement of attorneys and accountants might be subject to the prior approval of partnership management.
 Engagement of all experts or other personnel might be subject to the prior approval of partnership management.
 The partnership representative might be required to provide the partnership with copies of all notices from the Internal Revenue Service within a specified number of days of receipt.
 The partnership representative might be required to seek approval in advance of all court filings and all written communications to the Internal Revenue Service.
 The partnership representative might be required to seek approval in advance of all material agreements with the Internal Revenue Service or the United States (including waivers of statutes of limitations and settlement agreements).
 The partnership representative might be required to seek approval in advance of making any court filing or pleading.
 The partnership representative might be required to inform the partnership management in advance of all meetings with the Internal Revenue Service.
 Partnership management might have the ability to determine or to approve all material aspects of partnership audit strategy.
 The partnership representative might be required to consult regularly with the partnership management concerning audit and litigation strategy.
 The partnership representative might be required regularly to update the partnership of the progress of the audit and any court proceeding.
© Terence Floyd Cuff and Jerald David August, 2016
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