Page 121 - 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
election-out year or a partnership payment year. Some issues that the partnership agreement or limited liability company may address include:
 Provisions for the partnership to make the election to elect out for a partnership taxable year (including what vote is required).
 Provision for cooperation between the partner and the partnership.
 A requirement for the partnership to cooperate with the partner by providing access to partnership financial information, partnership records, and transactional documentation.
 A requirement for interpartner cooperation in the audit.
 Possibly a requirement for some interpartner information sharing
in the audit.
 Possibly some arrangement between the partner and the partnership concerning audit cost sharing.
 A possible requirement for the partner to defend in audit the return positions taken by the partnership.
 An agreement by the partnership to make partnership personnel available regarding the partner audit.
 A requirement that the partner keep the partnership informed concerning the institution of the audit and the progress of the audit (including any tax litigation that may result from the audit).
 In some cases, a requirement for the partner to use advisors designated by the partnership to defend partnership issues in audit (presumably at the expense of the partnership).
 Agreement of the partner to inform the partnership of the settlement of the audit and of the general terms of the settlement as concerns partnership items.
 Notice to the partnership of filing of a petition in either Tax Court, District Court, or Court of Federal Claims.
 Agreement of the partner to inform the partnership of court resolution of partnership items.
© Terence Floyd Cuff and Jerald David August, 2016
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