Last week, President Obama signed H.R. 1314, the Bipartisan Budget Act of 2015 (the “Legislation”), which dramatically changes the manner in which partnerships (and LLC’s taxed as partnerships) are audited and taxed by the IRS. The Legislation is effective for tax years beginning on or after January 1, 2018, but partnerships may elect to be subject to the new rules immediately.
- If you currently have a partnership or an LLC taxed as a partnership, you need to consider amending the partnership agreement or LLC operating agreement to ensure that the partnership can elect out of these new rules or addresses how to cause the partnership to have the partners, past and present, equitably share any partnership level tax liability.
- If you are considering investing in partnership or LLC taxed as a partnership, you need to negotiate provisions in the partnership agreement or LLC operating agreement that make you whole with respect to federal income tax liabilities paid by the partnership on account of an IRS audit of 2018 or later years for which you should properly have no liability.
For help with your legal needs contact a business, tax, and health care law attorney at the offices of AttorneyBritt.
Review-Like-Follow AttorneyBritt On:





No comments:
Post a Comment