Page 244 - 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
 Partner obligation (and prior partner) to provide financial and tax information, including tax information, in connection with the audit.
 Possible obligation of partners (and prior partners) to provide information regarding future financial and tax expectation in connection with substantiality issues.
 Making partners (and prior partners) and their personnel available to testify and to aid audit.
 What are the respective rights and obligations of buyers and sellers of partnership interests in connection with a partnership audit?
 What are the rights of partnership management to participate in the audit?
 What are the rights of the partners to participate in an audit?
 What are the rights of a prior partner to participate in an audit?
 Does the seller of a partnership interest have any right to participate in the audit?
 Who bears what audit expenses?
 Should prior partners bear some of the audit expenses? How
is their part of the expenses determined?
 Standard of judgment of partnership representative.
 Partners should be required to provide required partner tax information, documentation, data, and calculations necessary to provide modifications to the imputed adjustment.
 The partnership agreement may require the reviewed year partners (including former partners) to file amended return for the reviewed year including partnership adjustments on those returns and to pay the required tax. The General Explanation of Tax Legislation Enacted in 2015 (JCS-1-16, March 2016) clarifies that “Anything required to be
© Terence Floyd Cuff and Jerald David August, 2016
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