The Internal Revenue Service ("IRS") final regulations and removal of temporary regulations regarding the centralized partnership audit regime were published in the Federal Register. The regulations, which will implement a Bipartisan Budget Act of 2015 provision on partnerships audits, became effective on August 9, 2018.
As previously covered, under the centralized partnership audit regime, taxes on partnership income generally will be assessed and collected at the partnership and not the partner level. The final regulation will affect partnerships for taxable years starting after December 31, 2017. The temporary regulations – which concern the time, form and manner of electing to apply the centralized partnership audit regime to partnership taxable years starting after November 2, 2015 and before January 1, 2018 – will be removed and replaced. According to the IRS, no substantive changes were made to the adopted regulation concerning election into the centralized partnership audit regime.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.