How to opt out of the new partnership audit rules

Description

Abstract: Many real estate businesses are formed as partnerships, and, beginning this year, the IRS is applying new procedures to its partnership audits. Under the procedures, any adjustments and penalties after an audit generally will be assessed against the partnership itself, rather than against individual partners. Certain partnerships can opt out of the new procedures, though, and the IRS has issued final regulations that explain the who and how of this procedure. This article examines what real estate professionals need to know.