Page 243 - 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
 Does the partnership have adequate provisions concerning financial contribution to joint defense if the partnership elects out? The partnership may have a continuing interest in each partner’s individual audit.
 Is a partner entitled to inspect books and records in defense of an audit?
 What confidentiality provisions will apply?
 Conducting audit at partnership level.
 Conducted by partnership representative?
 Who does the partnership representative report to?
 Confidentiality requirement. The partnership agreement presumably should have strong confidentiality provisions.
 Use of accountants and counsel. The partnership representative should be entitled to rely on partnership accountants and counsel.
 Access to partnership financial and tax books and records. The partnership representative should have full access to partnership financial and tax books and records.
 Access to partner (and perhaps prior partner) financial and tax books and records and their advisors. Access to partner and former financial and tax books and records can be important in establishing substantiality of allocations and other matters that may affect tax effects at the partnership level. Nevertheless, partners may be extremely reluctant to give any access to personal books and records. If access is permitted, strong confidentiality provisions are in order.
 Access to partnership personnel, including managers.
 Access to partners (and perhaps prior partners) and partner (and perhaps prior partner) personnel. Ability to talk to partners, prior partners and their personnel may be important to the audit.
 Partner obligation (and prior partner obligation) to cooperate with the audit.
© Terence Floyd Cuff and Jerald David August, 2016
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