Frequently Asked Questions
Is this relevant to my partnership?If your partnership agreement makes reference to a ‘tax matters partner’ then it should be updated as that role has been replaced with the ‘partnership representative’ which represents the partnership in dealing with the IRS in the event of a federal tax audit.
The new rules allow the IRS to impose a tax adjustment at partnership level instead of auditing the partners individually unless the partnership elects out of the application of the rules. Our clauses are designed to help small partnerships adapt to the new regime.