Page 40 - The TEFRA Partnership Audit Rules Repeal:
P. 40
Liability for Periods Preceding Ownership
Will the buyer ever be responsible for a tax adjustment related to a reviewed year in which the buyer was not a partner?
• Is the partnership prevented in any way from making the push-out election for prior years?
− Anything in the agreement?
− Possible issues with tiered partnerships—will push-out be possible?
• If the push-out is made, would the partnership have any obligation to make a
tax distribution?
• Who makes the decisions about push-out election?
− Just PR? Any restrictions on PR’s actions?
• Indemnification vs. required push-out (or control of push-out)
• Is tax distribution language drafted to exclude adjustments?
• Other ways in which former partners might have a claim against the partnership for tax items?
Copyright © 2016 PricewaterhouseCoopers LLP. All rights reserved. Coming changes to IRS Audits of partnerships 31
