19 September 2019 - Podcast
On June 13, 2017, the IRS adopted new rules providing for partnership audit assessments and adjustments at the entity level, rather than among individual partners. The old regime of passing on a partnership’s audit adjustments to the partners had become a time-consuming and costly process for the resource-constrained IRS.
The proposed regulations implementing the entity-level audit regime were issued in mid-January 2017 and withdrawn after President Trump announced a regulatory rulemaking freeze. The partnership audit regulations are largely the same as those that had been withdrawn in January 2017. State officials and practitioners had been awaiting the regulations for guidance, because the rules will have significant state-specific impacts.
For more information, see https://www.federalregister.gov/documents/2017/06/14/2017-12308/centralized-partnership-audit-regime.