Final regulations governing the selection, designation and power of partnership representatives were issued on August 6, 2018. On December 21, 2018, the Treasury and the IRS issued final regulations addressing other aspects of IRS partnership audits. If your family owns a family limited partnership or other entity taxed as a partnership, such as a limited liability company (or an S corporation that has made an election to be taxed as a partnership), these rules could apply to you and may necessitate changes to existing organizational documents.
Partnerships and limited liability companies that have not yet reviewed their agreements should take steps now to comply with the new rules and regulations or risk compliance issues should they be selected for audit. Furthermore, partnerships and limited liability companies should take steps now to identify a partnership representative.
Please click here to read our helpful reminders for companies on the status of the new partnership audit rules and regulations now that 2018 has come and gone.