Page 127 - 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
The GENERAL EXPLANATION OF TAX LEGISLATION ENACTED IN 2015 (JCS-1-16, March 2016) explains that, under any guidance with respect to tiered partnerships, the sum of all direct and indirect partners62 may not exceed 100 persons with respect to which a Section 6031(b) statement must be furnished. Each partner must be identified.
Eligibility of the first partnership to make the election out requires the first partnership to include (in the manner prescribed by the Secretary) a disclosure of –
 the name and
 taxpayer identification number of
 each direct partner of the first partnership and
 each indirect partner (including each partnership and its partners) in every tier.
The disclosure must require that each is taken into account in determining whether the 100-or-fewer-statements criterion is met.
For the taxable year the partnership is required to furnish 100 or fewer statements under Section 6031(b) with respect to its partners, each of the partners of the partnership must be –
 an individual,
 a C corporation,
 any foreign entity that would be treated as a C corporation were it domestic,
 an S corporation, or
 an estate of a deceased partner. The election –
 is made with a timely filed return for the taxable year, and
 includes (in the manner prescribed by the Secretary) a disclosure of the name and taxpayer identification number of each partner of the partnership.
62 This includes each partnership and its partners.
© Terence Floyd Cuff and Jerald David August, 2016
58