Page 211 - 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
 Refunds.
The adjustment (pursuant to a partnership’s administrative adjustment request) may not result in an imputed underpayment. Any refund is not paid to the partnership. Procedures similar to the procedure for furnishing reviewed year partners with statements reflecting the requested adjustment apply, with appropriate adjustments. The refund procedures (if refunds are available) should be detailed in regulations, when they are issued.
 Time for making administrative adjustment request.
A partnership may not file an administrative adjustment request more than three years after the later of (1) the date on which the partnership return for the year in question is filed, or (2) the last day for filing the partnership return for that year (without extensions).
In no event may a partnership file an administrative adjustment request after a notice of an administrative proceeding with respect to the taxable year is mailed.
 Tiered partnerships.
In the case of tiered partnerships, a partnership’s partners that are themselves partnerships may choose to file an administrative adjustment request with respect to their distributive shares of an adjustment. The partners and indirect partners that are themselves partnerships may choose to coordinate the filing of administrative adjustment requests as a group to the extent permitted by the Secretary.
The new partnership audit rules do not require the partnership to inform partners of an audit. The partnership agreement should provide for notice to partners.
The partnership can receive these notices under the new audit regime:
 notice of any administrative proceeding initiated at the partnership level;
 notice of a proposed partnership adjustment resulting from the proceeding; and
 notice of any final partnership adjustment resulting from the proceeding.
© Terence Floyd Cuff and Jerald David August, 2016
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