If your business is a partnership, new audit and adjustment rules passed by Congress have significantly increased the chances that it could be audited. Your partnership operating agreement should be reviewed and possibly revised to address the rules and the new tax terms and concepts that they introduce. It is possible for some partnerships to opt out of the rules’ provisions, but careful consideration should be given to this decision and to other concerns.
While the rules generally apply to returns filed after 2018, we recommend that you begin planning now to prevent any unexpected consequences when they do become effective. We urge you to contact us today for more information on how the new rules might apply to your business and what steps you should take to address them.