The Bipartisan Budget Act of 2015, changed how the IRS will handle partnership audits starting with the tax year 2018. The act removes the old TEFRA rules and replaces them with uniform audit rules that cover all partnerships unless certain elections occur.

The new partnership audit rules have the audit done at the partnership level and all taxes due are paid by the partnership. In addition, the new rules replace the Tax Matters Partner with a Partnership Representative. For every partnership return, the company will need to make decisions such as if they want to elect out of these new rules if they are eligible to elect out, who should be the partnership representative and what malpractice issues do the practitioners need to worry about.

This webinar will go into the new rules and the different traps practitioners may face when preparing partnership returns. We will go into the different elections that are available for taxpayers along with how the new partnership audit rules will function. Finally, the webinar will look at different things business entities can do in order to protect the partner’s interest as best as possible.

The IRS has not had the best track record when auditing partnership returns. Gone will be the days where partnership audits are infrequent and rare due to the complex TEFRA rules. It is the new IRS audit rules, starting in the tax year 2018, Congress has changed how an IRS audit will proceed.

Unfortunately, these new audit rules put high pressure on the tax return preparers and can easily result in unintended malpractice issue. This webinar will look at these new rules, how to protect yourself from malpractice issues when preparing partnership returns and look into the future to figure out how the IRS will handle these audits.