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17 Dec

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Partnerships: What to do Before you File!

December 17, 2018 | By | No Comments

On December 13th Delap hosted a webinar on the new partnership audit rules. If you missed the live webinar you’ll find the link to the recording below.  As a follow-up to the webinar, the team at Delap wanted to outline some of the action items needed by partnerships before filing your 2018 partnership tax returns.

Items that may require attention in the near future:

  • Each partnership needs to select a Partnership Representative (PR) and if the PR is an entity, the entity must establish a Designated Individual (DI) to replace what’s formerly known as the Tax Matters Partner (TMP).
  • Document the PR or the DI formally and in writing in your company’s operating agreement.
  • Review the eligibility requirements of “electing out” of the new audit procedures and if eligible, decide if the partnership wants to elect out. This election needs to be made on the 2018 partnership tax return.
  • Consider the need to meet with legal advisors to discuss the impacts of these new rules on all of your partnership documents.

Remember that amendments to partnership agreements need to be completed prior to filing your 2018 partnership income tax returns.  If you have questions for Delap, please do not hesitate to give us a call at (503) 697-4118 or contact us via email.  Our advisors would be happy to talk with you!

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Delap LLP is one of Portland’s largest local tax, assurance, wealth advisory, and information security consulting firms, located in Lake Oswego, Oregon.


Partnership Audit Updates from Delap

December 13, 2018, Delap’s Joe Seifert presented on Partnerships and the changes that may require updated operating agreements.

This presentation should get you up-to-speed on the significant changes Congress enacted to the partnership audit and adjustment rules. This new regime changes how tax adjustments resulting from partnership audits are assessed and collected. As a result, partners will need to carefully review and likely revise their partnership’s operating agreement.

  • A summary of the major changes to the partnership audit procedures
  • Various elections covered by these new audit procedures
  • Challenges these procedures present to partnerships
  • The roles and responsibilities of the partnership representative
  • Suggested items to address or modify in partnership operating agreements

Watch Presentation

 

Check out our other recent blog posts:

Partnerships Are Now Liable for U.S. Federal Income Tax

Passthrough Deduction for Advertisers, Marketing and Creative Agencies

Tax Reform Depreciation Updates

Update: Opportunity Zone Proposed Regulations