Page 242 - 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
if the partnership discloses the name and taxpayer identification number of each S corporation shareholder with respect to which a statement (Schedule K-1) is required to be furnished under section 6037(b).”
 The partnership agreement should require partners to provide such additional information as needed to enable 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 if the partnership discloses the name and taxpayer identification number of each S corporation shareholder with respect to which a statement (Schedule K-1) is required to be furnished under section 6037(b).”
 Will the partnership elect out of new audit regime?
 How is this determined?
 Who makes the determination to elect out?
 Is any restriction imposed on electing out?
 Do former partners have any role in making the decision to elect out?
 Will the partnership make this determination to elect out on a year-by-year basis?
 The partnership should commit the partners to provide any information necessary to enable an election out.
 What audit cooperation provisions will apply if the partnership elects out?
© Terence Floyd Cuff and Jerald David August, 2016
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