They’re back: Audit rules targeting partnerships can now be applied

Description

Abstract: The IRS has reissued proposed partnership audit regulations, withdrawn earlier this year as part of the Trump administration’s regulatory freeze. The proposed Centralized Partnership Audit Regime regulations (Reg-136118-15) — reportedly identical to the withdrawn regulations — apply to partnership tax years starting after December 31, 2017. But partnerships can elect to apply them for partnership tax years starting after November 2, 2015. This article explains what the new rules require and how they will affect a partnership’s tax liability.