Page 49 - The TEFRA Partnership Audit Rules Repeal:
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Partnership Agreement Provisions
Issues to Address in Drafting a Partnership Agreement Audit Provision.
• Application of the TEFRA audit provisions under current law.
− Notice of audit, appeals and court proceedings to partners, in-direct partners − Access of partners, including in-direct partners, to books and records
− Access to IRS IDRs, summonses, FPAAs, etc.
• Tax Matters Partner.
− Issues related to selection and removal
• Election out under Section 6221(b) by partnership/LLC to elect-in for pre-2018 application of the BBA partnership audit rules
− Majority (based on capital and/or profits)? Super-majority? Or simply in the sole discretion of the TMP? Must a partnership representative be appointed?
Copyright © 2016 Kostelanetz & Fink, LLP Coming changes to IRS Audits of partnerships 40
