Page 74 - 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
20. Judicial Review.................................................................................. 312
21. Period of Limitations.......................................................................... 316
22. Issues to address in drafting a partnership agreement
audit provision: ................................................................................. 325
23. Impact on Capital Accounts. .............................................................. 191
24. Application of the Attorney-Client Privilege......................................... 371
a. Attorney-Client Privilege Under Common Law
and Federal Rules of Evidence, Rule 501 .................................. 371
b. Parent-Subsidiary Corporation Context. ................................... 373
c. Presence of Centralized Management; the LLC
or the Limited Partnership........................................................ 374
d. Unincorporated Entities ........................................................... 375
e. Another View: The Entity is Not the Client. ............................... 375
f. Fiduciary Exception. Application to
Partnership Representative....................................................... 378
g. Some Privilege Issues Under the
Consolidated Audit Rules ......................................................... 379
1. Introduction.
The gates of the Inferno, according to Dante’s Divina Commedia, have this inscription: “Lasciate ogne speranza, voi ch’intrate [Abandon all hope, ye who enter here.].” Those seeking to study the new partnership audit rules should recall that inscription. Those working with the partnership audit rules may better understand that inscription.
The Bipartisan Budget Act of 2015, which President Obama signed into law on November, 2015, repealed the complex and much-criticized TEFRA partnership entity-level audit rules, including the electing large partnership rules.1 On December 18, 2015, Congress passed, and President Obama signed
1 Section 1101, Pub. L. No. 114-74, the Bipartisan Budget Act of 2015. Section 1101 repeals the current rules governing partnership audits with a new centralized partnership audit regime that, in general, assesses and collects tax at the partnership level. On the new audit provisions generally, see New York State Bar Association, Tax Section, Report No. 1347, “Report on the Partnership Audit Rules of the Bipartisan Budget Act of 2015” (May 25, 2016).
© Terence Floyd Cuff and Jerald David August, 2016
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