Page 50 - The TEFRA Partnership Audit Rules Repeal:
P. 50
Partnership Agreement Provisions (cont.)
Issues to Address in Drafting Election Out of the New Audit Rules Under the 100 or Fewer Eligible Partners Rule
• Eligibility to election out.
• Determination to elect out. How will it be decided to elect out? Sole discretion
of the partnership representative? Majority or super-majority vote of partners? − Annual election; notice and election mechanics
• Does the partnership have restrictions (including transfer restrictions) on who can qualify as a partner in order to permit the partnership to elect out?
Copyright © 2016 Kostelanetz & Fink, LLP Coming changes to IRS Audits of partnerships 41
