Page 67 - The TEFRA Partnership Audit Rules Repeal:
P. 67
Partnership Agreement Provisions (cont.)
Provisions on the Selection and Removal of the Partnership Representative (cont.)
• The partnership agreement should have a mechanism to ensure funding of audit expenses. There may be a desire to charge audit expenses in a manner that approximates allocations in the reviewed year [the year under audit]. Does a former partner pay a share of audit expenses? There may be a need to fund audit expenses after the partnership has ceased to exist.
• The partnership agreement perhaps should require former partners to keep the partnership informed of their addresses in order to facilitate notice of pushed out items.
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