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Congress Enacts Sweeping New Partnership Audit Rules

Volume 2 No 10   |   Read Article

By Nina Krauthamer and Philip R. Hirschfeld

Partnerships owning real estate or other assets sometimes take aggressive tax positions that may invite I.R.S. scrutiny. Philip R. Hirschfeld and Nina Krauthamer explain the new partnership audit rules enacted by Congress in November as part of the Bipartisan Budget Act of 2015. With limited exception, partnerships will become liable for tax increases arising from auditadjustments. This treatment raises the importance of tax indemnities when partnership interests are acquired.  See more →