${site.data.firmName}${SEMFirmNameAlt}
Call Us At:
301-637-8130

New IRS rules aimed at partnership audits

Maryland businesses that operate as partnerships or as limited liability companies will face new IRS rules starting with all tax years commencing on or after Jan. 1, 2018. In some cases, this may require changes to an existing partnership or member agreement. It may also require partners to communicate better in general to avoid potential consequences. One of the goals of the new auditing rules is to simplify the role of the IRS in conducting audits as well as to level the playing field between corporations and large partnerships.

Less than 1 percent of 2012 taxable year returns filed by a large partnership were audited. In that same year, more than 27 percent of traditional corporate returns were audited. Furthermore, two out of three large partnership audits concluded with no changes being made. Of C corporation returns audited, only about 25 percent resulted in no change to a return.

All partnerships will be governed by the same auditing rules starting in 2018, but some may be able to opt out of the rules. Among other rule changes, if the government determines that a partnership is entitled to a refund as the result of an examination, it can be used as an income adjustment on the next year's tax return. A partnership representative must be named who will act as the sole person the IRS has contact with during an examination.

Companies have rights and protections when dealing with the IRS. Among these rights may be the ability to question whether any assessed tax balance has been calculated properly or calculated using appropriate information. If a partnership is audited by the IRS, it may be appropriate for it to have an attorney provide guidance during the examination process and negotiate with the IRS on the partnership's behalf.

No Comments

Leave a comment
Comment Information

Contact the Tax Lawyers at Kundra & Associates

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get In Touch
  • Best Law Firms U.S. News 2014
  • Best Law Firms U.S. News 2015
  • Best Law Firms U.S. News 2016
  • Best Law Firms U.S. News 2017
  • fortune leading women in the law 2013 & 2014
  • Super Lawyer
  • Best Lawyers 2013, 2014,2015 and 2016
  • Global Law  Experts | 2016 | Annual Awards Winner

Rockville Office
110 North Washington Street
Suite 406
Rockville, MD 20850

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Washington, D.C. Office
1025 Connecticut Ave NW (By Appt only)
Suite 1000
Washington, DC 20036

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Kundra & Associates, PC
C/o Anmol Sekhir Consultants Pvt. Ltd. Chartered Accountants
3rd Floor, Sahakar Bazar
Opposite Railway Station
Bandra (West), Mumbai 400 050

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions