Your Operating or Partnership Agreement and the New Audit Rules

The changes to the federal tax laws enacted in early 2018 provide for increased auditing of tax returns filed by partnerships and limited liability companies taxed as partnerships.  These changes are designed to increase the number of IRS audits of tax returns filed by these entities in an effort to increase tax revenue.  If a partnership or LLC taxed as a partnership is audited, the new tax laws require that the entity’s Operating or Partnership Agreement must include specific provisions designating a partnership representative with the authority to address the audit and mitigate the tax consequences thereof to the greatest extent possible under the new laws.  Therefore, if you are a partner in a partnership or a member of a Limited Liability Company taxed as a partnership, please contact us so that we can amend your Partnership or Operating Agreement to incorporate these new partnership representative provisions.

Attorney Stephen A. Lasky