Hinshaw White Paper Reviews New Partnership Audit Rules and their Impact on Partnerships and LLCs
Hinshaw is pleased to announce the publication of a new white paper—titled “Partnership and LLC Agreements Require Changes by 2018”—that reviews new partnership audit rules scheduled to go into effect in 2018, and looks at their impact on partnerships and multiple-member limited liability companies (LLCs) taxed as partnerships. Authored by estate planning and wealth management attorney Steve Frost—a Certified Public Accountant—the paper focuses on the prospect that these entities may be obliged to pay federal income tax audit assessments at the partnership level, which could have negative effects unless steps are taken to mitigate the impact of the new law.
Frost's paper argues that every existing partnership agreement and LLC operating agreement should be reviewed now in light of the new partnership audit rules. It notes that it is likely that every agreement will require at least some amendments, and that—at a minimum—every existing partnership agreement and LLC operating agreement should be amended to appoint a partnership representative before December 31, 2017.
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