The right PR – IRS finalizes rules for partnership representatives in audits

Description

Abstract: The IRS has issued its final regulations for the designation, authority and replacement of a partnership representative (PR) under the new default audit regime for partnerships (including limited liability companies taxed as partnerships). The PR replaces the previous role of the tax matters partner and possesses a broader authority to bind the partnership and all partners in dealings with the IRS. This article reviews the final regulations that are effective for tax years beginning after 2017.