Page 241 - 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
 Funding of partnership audit, including funding after dissolution of the partnership.
 Possible capital contributions to fund partnership audit.
 Partner cooperation with TMP.
 Possible requirement of partners to provide financial information and tax information to the TMP.
 Does this extend to confidential tax information?
 If so, this should include confidentiality provisions.
 Distribution of notices.
 Waiver of statute of limitations.
 Management supervision of TMP.
 Election out of new audit regime.
 The partnership agreement needs to clarify who makes the elect out decision and what vote may be required. This may become a particularly controversial provision, since different partners may have different interests.
 The partnership agreement should require partners to provide the information necessary for the partnership to elect out?
 The partnership agreement should require that partners provide the partnership with the required names and taxpayer identification numbers necessary to permit the partnership to make the election out. For example, the GENERAL EXPLANATION OF TAX LEGISLATION ENACTED IN 2015 (JCS-1-16, March 2016) clarifies that “For a partnership with a partner that is an S corporation to elect out, the partnership is required to include with its election (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each person with respect to whom the S corporation must furnish a statement under section 6037(b) for the S corporation's taxable year ending with or within the partnership's taxable year for which the election is made. This requirement is met
© Terence Floyd Cuff and Jerald David August, 2016
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