Page 256 - 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
 How can the indemnification be enforced?
 Are indemnification payments subject to offset?
 What are the limitations on the indemnification?
 How is the indemnification funded?
 What
in order to be indemnified? Does the indemnification extend to fines and penalties?
standard of care must the partnership representative satisfy  Transfer Restrictions.
 Does the partnership have restrictions (including transfer of partnership interest restrictions) on who can qualify as a partner in order to permit the partnership to elect out of the new regime?
 Does the partnership have restrictions on upstream transfer of partnership interests?
 Can the partnership enforce restrictions on direct and indirect transfer of partnership interests?
 What can the partnership do to enhance the restrictions on transfer of partnership interest?
 How does the partnership enforce restrictions on transfer of partnership interest, particularly upstream restrictions on transfer of partnership interest?
 How does the partnership know whether upstream restrictions on transfer of partnership interest have been violated?
 Funding the audit.
 The partnership agreement might address funding the audit
assuming that the partnership has adequate funds.
 The partnership agreement might address the possibility of a capital call on partners to fund the audit.
 The partnership agreement might address the possibility of a capital call to fund the audit if the partnership has dissolved.
© Terence Floyd Cuff and Jerald David August, 2016
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