Page 175 - 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
 The partnership representative might be required to file periodic written reports with partnership management concerning the status of the partnership audit.
 The partnership representative might be required to seek the prior approval by the partnership management of any agreement to extend statutes of limitations.
 The partnership representative might be required to seek the prior approval by the partnership management of any settlement with the Internal Revenue Service.
 The partnership representative might be required to seek partnership management approval in advance of incurring any expense of a specified amount.
 The partnership agreement may direct the partnership representative to avoid conflicts of interest and may detail the fiduciary duties of the partnership representative.
 The partnership representative should be subject to a confidentiality requirement.
 The partnership representative may be requires to use best efforts, reasonable commercial efforts, or something else in connection with the audit.
f. Who can be Partnership Representative?
Who can be the partnership representative? Section 6223 advises: “(a) Designation of partnership representative. – Each partnership shall designate (in the manner prescribed by the Secretary) a partner (or other person) with a substantial presence in the United States as the partnership representative who shall have the sole authority to act on behalf of the partnership under this subchapter. In any case in which such a designation is not in effect, the Secretary may select any person as the partnership representative.”
i. A partner (or other person)
The partnership representative must be a partner or other person. Practically anyone (subject to the substantial presence test) can be the partnership representative. The partnership representative apparently must be a person. The general definition of “person” under Section 7701(a)(1) presumably should apply: “The term ‘person’ shall be construed to mean and
© Terence Floyd Cuff and Jerald David August, 2016
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