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Hinshaw White Paper Reviews New Partnership Audit Rules and their Impact on Partnerships and LLCs

November 7, 2017

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.

Download a copy of the white paper (PDF)

This article is not intended to provide accounting, tax, legal or other professional services. This article is provided with the understanding that the publisher is not engaged in rendering such services. This article should not be used as a substitute for professional advice. No professional relationship is created or intended by the publication or use of this article.

Hinshaw & Culbertson LLP is a U.S. law firm with 450 attorneys located in 11 states and London. Founded in 1934, the firm has a national reputation for its insurance industry work, its representation of professionals and law firms, and its closely coordinated business advisory, transactional and litigation services. We serve clients ranging from emerging and middle-market businesses to Fortune 500 companies, as well as governmental and public sector clients.